Crypto vs. Digital Banks: Which Offer Better Interest Rates in the Philippines?

BitPinas created a list of interest rates between local exchanges PDAX and Coins.ph and the six digital banks in the Philippines.

Local crypto exchanges PDAX and Coins.ph have launched their separate “Hold and Earn” campaigns, a program where users will earn a certain annual percentage yield by just holding a cryptocurrency.

• This method is similar to what digital banks are doing—those who will put their money into a savings account will earn an interest rate.

What’s the Significance: This article seeks to provide individuals who want to earn passively by holding their funds and earning a yield or interest. 

• Note: Assume that the use will need to withdraw the funds anytime, so we will only compare the local exchanges’ APY to digital banks’ annual interest rate on savings accounts. We do not include the time deposit account because it requires a user to lock their funds for a specific amount of time and is not available for immediate withdrawal if an emergency happens—more similar to crypto staking.  

The Local Crypto Exchanges

Coins.ph 

• Coins.ph is the first known blockchain-based company in Asia to hold both Virtual Currency, which is now Virtual Asset Service Provider, and Electronic Money Issuer licenses from a central bank.
• Aside from its spot trading feature, it also has Coins Pro, an order book crypto trading platform.
• Current Campaign: PHPC HODL and Earn
  • Annual Percentage Yield: 8%
  • Monthly interest rate to be received: 0.67%
  • Minimum balance required: 1000 $PHPC (₱1,000.00)
  • Read the current HODL and Earn Campaign here.

PDAX

• The Philippine Digital Asset Exchange operates an order-book style exchange that offers users to trade cryptocurrencies to fiat (Philippine Peso) and vice versa. The company has a virtual currency exchange license from the Bangko Sentral ng Pilipinas (BSP).
• Aside from spot crypto trading, PDAX also offers blockchain-based government bonds and has its own NFT marketplace called Mintoo. 
• Current Campaign: PYUSD-SOL HODL and Earn
  • Annual Percentage Yield: 10 %
  • Monthly interest rate to be received: 0.83%
  • Minimum balance required: 250 $USDC (Around ₱14,500.00)
  • Read the current Hold & Earn Campaign here.
• Note: PDAX also has bonds which also offers APY.

The Digital Banks

• GOtyme of Robinsons Bank Corp. 
  • GoTyme, a joint venture between the Gokongwei Group and Tyme, obtained its license in August 2021; it received its Certificate of Authority on July 29, 2022.
  • Annual Interest for Savings Account: 4% 
  • Monthly interest rate to be received: 0.33%
  • Minimum balance required: None

• Maya Bank of Maya, formerly PayMaya 
  • The digital bank received its license on September 16, 2021 and was launched six months later on April 29, 2022. 
  • Annual Interest for Savings Account: Up to 14% 
  • Monthly interest rate to be received: 1.17%
  • Minimum balance required: None

• Overseas Filipino Bank (OFBank)  
  • OFBank secured its license on March 25, 2021. It is a government-owned and controlled banking institution in the Philippines. It was established to cater to the banking needs of overseas Filipino workers (OFWs) and their families. 
  • Annual Interest for Savings Account:  0.05%
  • Monthly interest rate to be received: 0.004%
  • Minimum balance required: ₱500

• Tonik Bank of Singapore
  • Singapore-based TONIK Financial announced it had acquired a digital banking license from the central bank in 2020–it is the first digital bank in the country. 
  • Annual Interest for Savings Account:  Up to 4.5%
  • Monthly interest rate to be received: 0.375%
  • Minimum balance required: None

• UNObank of Singapore
  • The digital bank received its license from the BSP on June 3, 2021.
  • Annual Interest for Savings Account:  Up to 4.25%
  • Monthly interest rate to be received: 0.35%
  • Minimum balance required: None

• UnionDigital of the Union Bank of the Philippines
  • UnionDigital, the digital banking arm of Union Bank of the Philippines, received its go signal on July 12, 2021, and was officially launched on July 18.
  • Annual Interest for Savings Account: Up to 4%
  • Monthly interest rate to be received: 0.33%
  • Minimum balance required: None

Comparison of Interest Rates

	Hold and Earn on Crypto Exchanges	Savings Account on Digital Banks
Regulation	Regulated by the Bangko Sentral ng Pilipinas	Regulated by the Bangko Sentral ng Pilipinas
Annual Yield / Interest Rate	*Higher (8% to 10%)	*Lower (0.05% to 4.5%) Note: Only Maya has higher rates than the local crypto exchanges with up to 14%, depending on conditions met.
Minimum balance required	Higher (Coins is ₱1,000.00 while PDAX is ₱14,500.00)	None (Only OFBank has a required balance)
Conditions	Maintain a minimum balance	Must reach a certain amount of funds to reach a certain amount of interest rate
Risk	Cryptocurrency is a volatile market and is considered high risk	Low Risk

*Note: The rates, requirements, and event cryptocurrencies that can be “held and earned” almost always change monthly.

The bottom line: Investors should not just look for ‌annual yield. They should also check their risk appetite in putting their funds in these institutions. It involves our hard-earned money, so we should treat it as our babies. 

This article is a press release sent to BitPinas: Crypto Interest Rates From Local Exchanges vs Digital Banks

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