I have said in a previous post that most Filipinos who don’t work in a corporation or who are self-employed or stay at home don’t have savings accounts to their name. Actually, if I am not mistaken, 80% of working Filipinos use their payroll accounts as their only savings account.
I am one of the 80% Filipinos I am talking about.
Even to this day, four years after I quit the corporate world and started working on my own, I am still using the last payroll account I had. It would have been closed if the people from the last company I worked for are efficient. But I am glad they’re not because I am still enjoying the benefits of a payroll account.
What is a Payroll Account, anyway?
A payroll account is an ATM savings account opened for an employee so that instead of receiving his salary in cash, the employee will instead get it through the bank via ATM withdrawals. Because the company is maintaining a certain amount in the bank per payroll account opened, the account itself has no maintaining balance required and it still earns interest on a quarterly basis.
With that, can you imagine how beneficial it is for someone if he or she can use the payroll account for as long as he or she can?