The news that most banks have waived InstaPay and PESONet transfer fees came as welcome relief for millions of Filipinos. At a time when every peso counts, saving even P10 to 25 on every transfer can make a difference.
One of the best things to happen to Filipino consumers in recent years is the rise of digital banking. We can now transfer money in seconds, pay bills without lining up, and even open an account without stepping into a branch. And now, with many banks offering free fund transfers and waived service fees, every peso saved is another peso that can go toward groceries, savings, or paying off debt.
But we are still far from the age of "free banking." While many banking services have become free or more affordable, there are still fees that can catch you by surprise. Some are unavoidable. Others can easily be prevented if you know how they work.
Before opening a new bank account, or keeping your existing one, it pays to ask these five questions:
1. Is there a maintaining balance?
2. Do transfer fees apply?
3. Are there ATM withdrawal charges?
4. When does the account become dormant?
5. What other service fees should I expect?
Knowing the answers to these 5 can help you avoid paying for fees that can eat into your budget. Here are 5 small banking fees that every depositor should watch out for.
#1 Free transfers don't always stay free
Competition among banks and the push toward digital payments have made free fund transfers increasingly common. But free now doesn't always mean free forever.
Some fee waivers are permanent, while others are promotional or apply only to certain accounts or if you use their app. Before making free transfers part of your monthly routine, check your bank's latest fee schedule and announcements.
#2 The ATM you choose matters
Have you ever withdrawn cash from an ATM that didn't belong to your bank? Most of us have, especially when convenience matters more than saving a few pesos. I try to avoid it, but when my bank’s ATM is offline, I have no choice.
Using another bank's ATM means paying an access fee that’s typically around P18. If you withdraw cash several times a month from different machines, you could end up spending hundreds or thousands of pesos each year on ATM charges alone.
Whenever possible, plan ahead. Withdraw larger amounts less frequently or use your own bank's ATM when it's nearby and hopefully online.
#3 Maintaining balance fees are still around
Some savings accounts require customers to maintain a minimum average daily balance. Drop below that amount and your bank may charge a monthly service fee.
Many customers are caught off guard because they assume the minimum balance only matters on payday or at month-end. In reality, banks often compute the average balance over the entire month. This becomes especially important if you maintain separate accounts for bills, emergency savings, or sinking funds.
If you're unsure about your account's requirements, check with your bank. Some accounts, like payroll accounts, have no maintaining balance at all, while others are specifically designed for digital banking users.
#4 Dormant accounts can become expensive
Maybe you opened a savings account for a specific purpose, then forgot about it after changing jobs or moving homes. Months or even years later, you discover the account has become dormant.
Many banks charge dormancy fees once an account remains inactive for a specified period, provided it still has a remaining balance. The exact rules vary, but inactivity usually refers to having no customer-initiated transactions for an extended period.
The solution is simple: either keep the account active by making an occasional transaction or close accounts you no longer use.
#5 Foreign transactions aren't just about exchange rates
Shopping on overseas websites has become second nature. Whether you're paying for streaming services, buying from international online stores, or subscribing to AI tools, your card may be charged in foreign currency.
While consumers make sure to compare exchange rates, they overlook foreign transaction fees. Depending on your card, your bank may charge a percentage of every overseas purchase, on top of the currency conversion. That means your P500 monthly subscription could actually cost more than you expected.
Before using your debit or credit card internationally, review the foreign transaction fees. If you regularly make overseas purchases, choosing the right card could save you thousands of pesos over the course of a year.
There are other fees as well, such as charges for certain over-the-counter transactions, bank certifications, replacement cards, or printed statements. At first glance, these charges seem small. But when you add one ATM fee here, one transfer fee there, a forgotten dormant account, and a few foreign transaction charges, they become what financial experts call "money leaks", small recurring expenses that quietly drain your finances.
None of this means you should avoid digital banking, or banking altogether. In fact, today's banking services are more affordable, more convenient, and more accessible than ever before. Digital banking has empowered millions of Filipinos to save, invest, pay bills, and manage their finances without wasting time in long lines.
The goal isn't to avoid banking. It's to avoid paying fees you don't have to. Banks are required to disclose their charges, but few of us take the time to read the schedule of fees before opening an account. We're usually more interested in interest rates, free transfers, or welcome gifts.
A few minutes spent reviewing your bank's schedule of fees can save you much more than you realize. After all, personal finance isn't only about earning more money. Sometimes, it's simply about keeping more of the money you've already earned.
That's one advice that's always worth paying forward.