7 Tips for Earning the Highest Possible Interest on Your Bank Account

Whether you’re building an emergency fund, preparing for your dream home, or setting aside capital for a small business, earning the highest possible interest on your bank account can significantly speed up your financial goals. Unfortunately, many Filipinos still rely on traditional savings accounts with ultra-low interest rates. That means they’re not maximizing their money’s earning potential. The good news? A few smart changes can help you earn more. Let’s explore how to grow your savings faster.

1. Choose a High-Interest Savings Account

Is your savings account actually earning anything worthwhile? Most traditional bank accounts in the Philippines offer very low interest rates of around 0.06% per annum. If you have ₱100,000 parked there, you’ll only earn about ₱60 a year. That’s barely enough to cover bank fees.

Now, compare that to a high-interest option. Specifically, digital banks and e-wallets that provide higher interest rates than traditional banks. For example, if you deposit in Maya with their 3.5% base interest rate, your ₱100,000 could earn up to ₱3,500 a year. That’s already a huge jump in savings.

2. Use Time Deposits for Funds You Won’t Need Soon

If you’ve got cash you don’t plan to use for a while, a time deposit might be better for your finances. Time deposits lock in your money for a fixed term, like 6 months to a year or even longer, in exchange for a higher interest rate. This setup is ideal for long-term goals like buying a car, starting a business, or simply resisting the urge to spend. It helps you grow your money while keeping it safely out of reach.

If this option appeals to you, here’s a smart tip on how to use time deposits wisely: try laddering your accounts. Instead of putting ₱100,000 into a single one-year time deposit, split it into five ₱20,000 deposits that mature at different terms. That way, you earn higher interest without losing access to all your cash at once.

3. Take Advantage of Promos and Bonuses

Banks frequently offer limited-time promotions that can supercharge your interest earnings. These promos are usually tied to account activity, like making purchases, paying bills, or using specific features.

Let’s use Maya again as an example. This digital bank has a promo where performing everyday activities, like paying via QR codes, buying load, or using your Maya card, could help you turn their base 3.5% interest into a whopping 15%. Do note that this special interest only applies to your first ₱100,000 deposit balance. Even so, it still means that your ₱100,000 could grow by as much as ₱15,000 in a year (before taxes).

4. Add to Your Savings Regularly

The bigger your balance, the more interest you earn. Simple math, right? But building the habit to steadily grow that balance can be a challenge. So, pay yourself first. As soon as you receive your salary, transfer a fixed amount—say, ₱500 or ₱1,000—straight into your savings. Moreover, funnel any bonus, side hustle income, or refunds you receive into your savings before you’re tempted to spend it. Remember that small deposits add up and a bigger balance means more interest, month after month.

5. Take Advantage of Compound Interest

Compound interest is when your money earns interest, and that interest earns even more interest over time. This is how even small savings can snowball into big funds. Let’s say you save ₱2,000 a month in an account that earns 3.5% annually. After five years, your balance will be more than just ₱120,000. It’ll be boosted to more than ₱133,000.

Of course, to maximize this effect, you need to avoid withdrawing from your savings. The longer you leave your money untouched, the faster and bigger it grows.

6. Use Banking Apps to Stay on Track

Modern banking apps do much more than show your balance. They also come with features that help you stay consistent with your savings goals. In particular, they help you create savings goals, track progress, organize your money into digital “envelopes,” and set critical reminders. Some apps even have a round-up feature, where they round your purchases to the nearest peso and save the difference. For example, if you spent ₱197 on a meal, the remaining ₱3 from the round-up automatically goes to savings. It might be small, but every little bit counts when it comes to saving.

7. Avoid Hidden Fees That Cancel Out Your Interest

Many traditional banks still charge fees that quietly eat into your savings. So, watch out for minimum balance penalties, account inactivity fees, over-the-counter transaction charges, or excessive withdrawal penalties. Because what’s the use of earning ₱100 in interest if your bank charges ₱300 in maintenance fees?

So, if your current bank hits you with fees regularly, then it’s time to switch. Plenty of digital banks and e-wallets offer no-fee savings options that let your money grow uninterrupted.

Boost Your Savings the Smart Way

You don’t need to be a financial expert (or a millionaire) to start earning better interest. With the right account, a few consistent habits, and the help of digital tools, your money can grow steadily and safely. Because at the end of the day, it’s not just about saving—it’s about growing what you’ve worked so hard to earn.