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April 21, 2024

Pinoys told: Save in formal accounts, don’t keep your money at home

​The Bangko Sentral ng Pilipinas (BSP) has encouraged the public to deposit their savings in formal accounts instead of keeping them at home.

“The unnecessary accumulation of banknotes and coins prevents Philippine currency from being recirculated and used as payment instrument,” outgoing BSP Governor Benjamin Diokno said.

Storing banknotes and coins in containers, such as jars, barrels, plastic bottles, and cabinets, hampers the efficient circulation of currency, causing an artificial shortage.

This would then require the BSP to increase the amount of banknotes and coins in circulation, resulting in additional production costs.

“The BSP could mint fewer coins if they are efficiently circulating. The reduced production costs would allow the central bank to remit more dividends to the national government, which would help fund pandemic-response measures and social services,” the incoming Finance Secretary said.

The BSP urges the public to deposit their savings in formal accounts with regulated institutions such as banks, e-money issuers, microfinance institutions, cooperatives, and non-stock savings and loan associations.

Hard-earned savings placed in these formal accounts are safeguarded through regulations imposed by the BSP and other relevant agencies. In the case of bank deposits, these are insured by the state-run Philippine Deposit Insurance Corp. (PDIC) and would earn interest over time.

“Account ownership serves as a gateway to financial inclusion. It enables people to participate in the benefits and opportunities of the formal financial system, empowering them to build a better financial future,” Diokno said.

The BSP regularly conducts information campaigns on coin recirculation and proper handling of Philippine currency, as well as on financial literacy and inclusion.​