How to get your hands on your money is always a topic that draws a lot of discussion on this site and other Philippine related websites. If you are keeping your bank in the USA, or whatever your country of origin is (something that I recommend as a good idea), then you need to figure out how to get those funds into your hands when you are living in the Philippines.
One way of doing it is by using ATM machines. That is what Feyma and I do. Money that we earn through our various enterprises is deposited into our US bank account each week. Then, when we need funds, we use ATM machines to get that money for our needs.
Recently, I had a little e-mail exchange with a friend who was asking for details on how to do it, since he may be coming to Davao in the near future, and is trying to decide now how he will handle his funds when he is staying in Davao.
Let me share a little bit of our exchange:
My friend:
Here where I currently live, we normally just withdraw cash from bank ATMs. It’s quick & easy & just pay a small fee every visit. But absolutely no hassle.
I remember you writing about ATM issues there. I’m hoping to just do it the same way there in Davao as here (ATM withdrawals), but is that something you recommend?
My response:
Really, the ATMs are pretty good here these days. For basically all of our money we make, it goes into our US account, then we use ATM to get access to it. I don’t think you will have any problem.
In the past, there have been some ATM problems here, but I think they have all been cleared up now.
My friend replied:
By any chance, would you know how much max withdrawal I can make a day? I can imagine that I might need a good chunk of cash for things there.
Again, my reply:
How much you can withdraw per day is determined by your bank. Whatever your card’s daily limit is can be withdrawn here.
The only thing is that the maximum withdrawal per transaction is limited. So, as an example, my US ATM card has a maximum withdrawal per day of $1,000. I can withdraw, roughly P48,000 per day (depends on the exchange rate that day). But, the bank we use has a maximum withdrawal limit of P20,000 per transaction. So, basically, we would have to withdraw P20,000 twice, then withdraw P8,000 to reach our daily limit. Some banks have lower “per transaction” withdrawal limits, some as low as P4,000. If I went to that bank, I would have to then do 12 different transactions of P4,000 each to reach my daily limit.
Now, for me, it isn’t a biggie, because on my US bank account, they do not charge me for ATM transactions (it’s an old account on a special deal that is not available any longer, but I am grandfathered in), so no matter how many transactions I do, it doesn’t cost me anything. However, let’s say you are paying a $2 fee for withdrawing from a foreign ATM (it could be higher, $5 or more – the cost is determined by your home bank). If you did it at the bank that has a P20,000 transaction limit, it would cost you $6 in fees to withdraw the equivalent of $1,000. If you did it at the bank that has a P4,000 per transaction limit, then it would cost you $24 in fees to get that same $1,000. So, this is something to seriously consider.
Here in Davao, here are per transaction limits on ATM machines for the banks that I know:
HSBC – P20,000
BPI (only some of their machines – the NCR brand machines) – P20,000
BPI (older machines) – P10,000
BDO – P10,000
UCPB – P4,000
I hope this also is helpful to some of you LiP readers, it is a question that I am asked very frequently.
Hi Bob – I had meant to ask you this when you mentioned this article yesterday.
I had written awhile back about the lack of banks and ATMs on Samal. Kevin mentioned that he thought he saw some while making his trip around the island last year. Can you say whether there are ATMs and/or banks there or not?
I remember getting money at the ATM in Davao and Digos and it was pretty easy. Sometimes in Digos, I had to wait and the person behind me was too close for comfort. Sometimes in small towns the ATM will be closed because they are out of money or for some other reason.
I always counted my money but I wonder if one needs to do that while in line. I've never gotten the wrong amount.
Randy, I checked my video and I didn't see any. Maybe Bob knows for sure.
Hi Bob – I enjoyed the simplicity in obtaining my funds via an ATM machine. To me, it was just as easy as ATMs in Chicago. Plus, the abundance of ATMs around Davao was a welcome sight. Now if I could control my spending habits there. 🙂
Hi Randy – At this time, there are no ATM's on Samal. I believe there is a bank in Babak, although I am not entirely certain. It's something I will check next time I go there.
Hi Kevin – How are you doing? I hope Jaycee is well.
I think it's a good policy to count your money, although I have never been shortchanged at an ATM here.
For my purposes I was considering writing myself a check once a month from my US account into my Philippine dollar account. It takes 30 to 45 days to clear so to be on the safe side I would need to keep enough in the account for 2 months expenses. Also could have a debit card in case of emergencies. Do you see any issues with doing the banking this way?
Hi Larry – I used to do it that way. However, with my businesses, it is almost impossible to estimate accurately how much money I will need per month, it swings wildly, so the ATM is a better solution in my personal case. However, for somebody with more "normal" money needs, that's a good way to go.
Hi Bob
Never shortchanged? I thought it was you who told me about putting your card in the ATM and not getting money but it was deducted from your account. I think that was in 2005 you mentioned that?
Ray, if you re-read my words… Kevin said that he counted his money. I said that I have never had a problem of getting less money than I had requested. Yes, I have had problems where I got no money at all. When you get nothing at all, there is nothing to count! 😉
As I said in today's article, those problems now seem to have been resolved. As I advised to Kevin – it is a good idea to count your money. I have never gotten less money than requested, except when I got no money at all.
Hi Bob I think sometimes BDO is a crap shoot here in Tagum, what i mean is sometimes it will allow us to withdraw 10.000 and sometimes only 4k i dunno matbe its me but that is my concern as you mention the fees can kill you if you aren't careful
In Davao City, I have never had that problem before. BDO always gives us P10k, unless the machine has no cash, or not enough.
Interesting topic, Bob. Can you comment on the safety of a foreigner going inside a bank or at an ATM and riding in say a jeepney?
My gf, Rosemarie who lives in Davao City was a money lender before a guy stole nearly P25,000 when she was distracted by her small child while riding a jeepney.
This concerns me that a foreigner is easy prey when trying to save money riding a jeepney versus a taxi. I remember an e-mail here in the U.S, advising us to lock the doors as someone could easily rob us while stopped for traffic in a taxi.
Even here, in times like these, an ATM withdrawal is an easy place to be robbed. Maybe, I can answer this one myself: Go with the buddy system. Have someone local that is fast to watch my back when carrying large sums of money.
From my experience, if it's gonna happen to anyone, it will surely happen to me.
Thanks,
Ed
Depends on how much cash you are carrying, Ed. If you have a significant amount of money, you'd be better to opt for a taxi instead, in my opinion.
I know several people who do it that way. I am planning to do the same myself. You just have to plan ahead and retain an ATM card for emergencies. 😎
I agree. I ride jeepneys when I can but if I am carrying a large amount of cash or other valuables I just take a taxi. Much safer.
I never got more than 4000 at BDO in Tagum, I tried to get 8000 and it said over the limit or something like that. I used the 4000 button and out came the money.
Bob, thanks for clarifying a bit on the transaction withdrawal limits of ATM's. I didn't know that some BPI ATM's allow for 20.000 Pesos per transaction. Something learned today!
I usually use Allied, Metrobank, BPI, RCBC, Chinabank, which mainly allow 10.000 per transaction.
Also most PNB only allow for 4.000.
Hi Richard – The Tagum branch may be different, we regularly take out P10k per transaction at all Davao City BDO branches.
Hi Chris – Glad to help! On the BPI, just make sure it is one of the newer machines. The old ones won't do 20k.
Why do you avoid using a RP Bank for your deposits Bob?
Hi Brian – actually, I would not say that I "avoid" using Philippine banks. The main reason why I use US banks is because it is very, very difficult, nearly impossible, for a small time player like me to get a merchant account here in the Philippines, being able to take credit cards. Being able to accept credit cards is vital to my online businesses. Now, with the solutions that I use, I could have the money deposited into a Philippine account, but it would cost $50 or more for the deposit, and would take a week or more. When using the US account the transfer of funds is free, and is done in minutes. So, using a US bank in my case is a no-brainer.
Several expats have suggested writing a check from your US bank and depositing it into a Philppine bank account as a way to circumvent ATM fees, among other things. They say it takes about 30 days for US checks to clear. Is this a good idea?
It works well as long as you have a regular budget and your expenses remain fairly constant so you are able to figure out what you need in advance. You should also keep a credit card or debit card in case of unexpected expenses.
Hi David – Yes, it is a good way to go, I used to do it in the past myself.
Hi John – Thanks for filling in that info. That's why I specified Davao, because I figured that other areas may have different limits. 😀
Ed:Always take a taxi if you are going to an ATM or bank. The driver will usually wait for you, or, have the guard at the bank get a taxi for you when you are done(They normally will.) In Manila, it is best just to carry limited cash on a jeepney, and watch you wallet (or don't carry one at all… Do as the Romans do… Wad of cash in your pocket)
when i move to cebu i will definitly keep my american bank accounts ! plus i believe if you have a philippine bank account the philippines only federaly guarantees your money for hardly anything. amount wise! you are taking a big risk leaving a large amount in a philippine bank acct, the gov might swallow it up!
Hi Bob – I’ve had this happen at US ATM machines too, no money comes out of the magic money slot. It gets deducted from the account, only to reappear several days later. I don’t know if this is an automatic checksum that the ATM itself performs, or if a human is somehow involved. I only know that they tell me at the bank not to worry about it, no need to file a formal report unless it doesn’t come back in a week. Doesn’t make me feel all that comfortable, but it does seem to work – at least here in the US. It kinda bites though if you make a large withdraw, and have to wait a week to get it back. 🙂
Twice i tried to take 20,000 out of BDO ATM and both times no money came out- but i got no notice about whether or not there was a problem with my account, nor whether the money had been deducted from my account. Both times I went into see the bank and their printout confirmed that in fact both times 20,000 had been deducted from my balance, and then immediately been recredited.
When I have large sums of money wired into my usd account the manager has referred me to someone outside of BDO who exchanged my dollars into pesos at about .25% higher than the bank was paying . What did amaze me was that they actually [ every time!] deposited the pesos amount into my BDO account before I had even gone into the bank to authorize the payment from my usd account.
I have had similar problems with ATM’s too, ian. Ten years ago, though… when they didn’t give you the money, they took it out of your account but didn’t put it back! Things have improved a lot since then! 😉
I asked my bank here if my debit card would work overseas and they seemed doubtful. When I was in Gensan earlier this year I just used regular credit cards. Not bothering to try my debit card. Took 4 days before I even got my Visa to work. (let me tell you, I was panicking) Anyway, I was wondering which US bank you'd recommend.
Hi Tommy – Look on the back of your debit card. If it has the "Plus" or "Cirrus" network logo, it will work here. Not all banks here work with foreign cards, but most do. You said you were in GenSan. When I used to live there, we were always able to use our US cards at PCI Bank (which is now BDO), and BPI bank on Santiago Blvd.
Thanks Mr Martin,
My banks is not a chain but reserved to just this county. I asked them and they said they had lots of problems from overseas. It is a Cirrus so I thought it should work anywhere. But opted to use credit card anyway. which I will not bore you with but it was 4 days of me calling my credit card company and they kept saying that it should work and BDO declining it time after time and day after day. The Dolores was nice enough to say don't worry about it but I knew I'd have to pay sooner or later and I was getting nervous. Anyway, thanks for the info. Great site btw and you sent flowers to my fiancée in the hospital for me last year. Thanks for that too.
Hi tommy – I am happy to help you! No need to call me Mr. – Just call me Bob! Or Mindanao Bob! Ha ha… and, thank you very much for patronizing my business! It's always a pleasure to make people happy with good service! I'm sorry your fiancee was in the hospital, but happy that we could help you make her feel a little better!
its so much easier to use a atm machine then to open up a philippine bank acct. we have a extra savings acct that we gave the atm card to our filipino relatives so when we give them money all they do is withdraw money when we tell them to.international bank transfers take time and fees and western union is exspensive also.everytime i have ever dealt with going inside a philippine bank there so slow!and there always seems like some nonsense always happens right before i get service.
Hi mike – PDIC Insures your account up to P500,000, or roughly $10,000.
There is at least one in Cebu City that allowas P40000. I believe it is CITI.
I had a problem similar to yours in Angeles City. I called the credit card company the card was ok and there were no declined transactions. The problem turned out to be that at least some businesses in the Philippines have a limit on the credit card transactions they can do in one day. (Who ever heard of that?) Went back the first thing in the morning it went through with no problem.
????????? 😎
Hi Tom – Wow! I didn't know that! That's amazing to me!
Hi Bob
I started out with a wad of 100 dollar bills just in case
I am having trouble changing one of them,cause it has a 1/4 inch rip in it?
Hi erik – Yep! Changing dollars with any damage at all is difficult. I have found, though, that if you develop a relationship with your bank manager, they will take care of you.
In Olonapo City ATM’s are still a tad behind the times, Last week when the machine at my bank was empty I was told the the girl with the key had the day off. So I withdrew from the teller. Other ATM’s on the Subic Freeport and in town, quickly run out of cash on weekends and local paydays (when they send one kid to make 25 withdrawels for his co-workers). So every few months I wire transfer a couple of grand and keep it in a local bank, I plan ahead and hit the ATM’s in the middle of the week not the weekends, and when offline (Quite common in Subic) I just use the local bank and my account there. My VISA debit card is great for shopping on the freeport. So with a prior planning, all is well in the Philippine Islands. Ya gotta’ Love it!
HI, I have a BDO cash card which allows me to transfer money from here in Australia into an account with BDO, which costs only AUD $8 per deposit and the exchange rate is only a little under the real forex rate. Also the money goes in that day.
Im not sure that service is available in the states and UK but its worth looking into. When Im there in the phils I just do an internet online transfer, a quick phone call to the agent and its done! RCBC also has a cash card and maybe some other banks do. cheers.
Bob,
I have an ATM card with Bank of America but does not work in Davao and any of the machines I've been to. Can you or your readers mention which US Bank ATM cards do work? I'm working in Oman and I've noticed the US ATM card works with Bank Muscat ATM's but not with HSBC ATM's.
Hi Paul – My Mom has a Bank of America ATM card. It works fine in Davao! She uses it every time she visits us. As long as your card has either a Cirrus or Plus logo on the back, there should be no problems. My Mom's ATM card works at BPI Bank and many others too.
THANKS FOR ALL THE INFO IN YOUR WEBSITE,IT HELPS A LOT. WHERE TRYING TO GO HOME IN DIGOS AND VISIT FOR A COUPLE WEEKS. I HAVE A PLUS LOGO CARD, I WAS WORRIED IF IT DOES NOT WORK BUT IT SEEMS WE WILL BE FINE NOW.
Enjoy your trip, JJ!
Hello Bob,
My friend’s in Davao now and was trying to withdraw money from a BPI ATM, but was unsuccessful. From what I gather, his card has the Plus logo on the back. Are there limited ATMs that have the Plus logo or are most able to accommodate his card?
I’m in Manila so all I can do is guide him over the phone. He’s also disabled just as I am. We both are stroke survivors but his was more recent so he’s not as good a shape as I am now. He was hoping to maybe live in Davao.
Anyway, any info you have would be greatly appreciated. Thank you in advance.
Hi Robby – Finding machines with the Plus Logo are not always easy. What I would recommend that your friend try is to go to HSBC, which is on Jacinto Extension, just across from the Bangko Sentral ng Pilipinas. The ATM at HSBC should work with just about any card out there, I’d say.