Philippine bank question PDIC

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dj3642
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Hi all.. I have a question about Filipino banks.. in the us our banks give us protection of our funds up to 250000 dollars.. under the FDIC.. here in the Philippines.. people are only covered under 500000 Pesos.. which is about 10000 USD.. I am sure most expats here have a bit more than that.. my question is this.. do you leave most of your money in the US or how do you handle the protection difference..

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hk blues
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3 minutes ago, dj3642 said:

Hi all.. I have a question about Filipino banks.. in the us our banks give us protection of our funds up to 250000 dollars.. under the FDIC.. here in the Philippines.. people are only covered under 500000 Pesos.. which is about 10000 USD.. I am sure most expats here have a bit more than that.. my question is this.. do you leave most of your money in the US or how do you handle the protection difference..

I don't keep such a large sum here, but If I did I would just be careful about which bank I used.  I'd stick to one of the big guys and hope for the best.  Alternatively, spread my money around a few different ones.  But, it's not something that keeps me awake at night to be honest.

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Tukaram (Tim)
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I would not keep that much money in the PIs. I keep my money in my US bank.

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Dave Hounddriver
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1 hour ago, dj3642 said:

people are only covered under 500000 Pesos.

And be sure to read the fine print.  If the same group own 10 banks and all 10 go under at the same time then you only get the 500,000 once.  The bank owners had previously tried to convince people to invest in all ten banks to get ten times as much guarantee.  Not.   In addition, anything you have earned in interest counts against that 500,000 so if you put the money in the bank and get 10% interest for 10 years then the PDIC will tell you that you already got your 500K back.  Interest is not covered.  So if that applied to you then you would have to take all the money out each year and put it back in a new account.  Pain in the ass.  Better not to bother with it and keep your money in a foreign back OR one of the big banks here that are owned by foreign companies.  Less likely to fail.

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Clermont
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Another reason for keeping your money overseas, death duties, yes the government freezes the bank account until death duties are paid. Here in Oz, no death duties, easy access to money transfer from home to PI's, 1 hr generally and like USA, we have a bank guarantee on our money. :thumbsup:

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Dave Hounddriver
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AND if you die your bank will require a death certificate will all living next of kin written on it.  Then they need written, notarized, permission from everyone on the next of kin list before they will pay your money to you legal wife.  If not a legal wife the fuggedabout it. its gone unless you have a will that they accept.

 

 

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robert k
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Just don't bring it. Use a wire transfer if you need a large amount for a purchase. I currently don't have a Philippine account beyond a BDO cash card. Pays zero interest so it keeps things simple.

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hk blues
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4 minutes ago, robert k said:

Just don't bring it. Use a wire transfer if you need a large amount for a purchase. I currently don't have a Philippine account beyond a BDO cash card. Pays zero interest so it keeps things simple.

In theory you may be correct, but for practical reasons living here kinda makes having an account here desirable.  I keep enough here to last up to 2 years and just replenish from the UK when it drops to less than 3 months.  So, if my bank when bust It would hurt but not that much.  I'm more worried about my UK banks going bust!  

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GeoffH
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We have a BDO and BPI accounts in the Philippines but they don't have large amounts of money in them, just emergency funds.  My assets are primarily in Australia for reasons already stated.  It isn't hard to do transfers as and when needed (although it's better to do a few larger transfers rather than many small ones to reduce fees).

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Arizona Kid
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4 hours ago, dj3642 said:

Hi all.. I have a question about Filipino banks.. in the us our banks give us protection of our funds up to 250000 dollars.. under the FDIC.. here in the Philippines.. people are only covered under 500000 Pesos.. which is about 10000 USD.. I am sure most expats here have a bit more than that.. my question is this.. do you leave most of your money in the US or how do you handle the protection difference..

I keep mine in my mattress. :smile:  Kidding aside I keep mine in a US credit union.

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