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TIPS
ON PROTECTING YOURSELF WHEN DEALING WITH BANKS (NOTE:
THIS CAN BE A SEPARATE ITEM) |
The Philippine Deposit Insurance Corporation (PDIC) gives the
following tips:
1) Know the bank’s reputation. Investors and depositors
should read newspapers and surf websites of BSP and the bank
to know about the bank’s capitalization, ranking, financial
statements, income projection, and products and services.
2) Know the bank’s products. Depositors should also determine
whether a particular bank product is a deposit or not. They
may confuse deposit products with investment schemes not covered
by PDIC.
3) Know the current market interest rates. Depositors should
be cautious with overwhelmingly high interest rates. Unusually
high interest rates compared to market interest rates may mean
liquidity problems and higher risks.
4) Read the fine prints. Depositors should also be careful not
to miss out the fine prints—tiny words, phrases, or sentences
in the passbook, certificate of time deposit, or any documents
that need to be signed.
5) Secure and update bank records. Depositors must secure passbook,
ATM card, certificate of time deposit, checkbook and other bank
records. These records serve as proof of the deposit accounts.
6) Check for signs that the bank may be in trouble. Depositors
should be wary when they cannot withdraw their money on demand
or if they can only withdraw money at a schedule given by bank
officers. Further, they should be cautious of aggressive solicitation
by bank marketing personnel. Finally, depositors should also
take note of their bank’s past due loan ratios. High levels
of unpaid debt may lead to a bank’s difficulty in servicing
withdrawals.
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