A savings bank is a financial institution whose primary purpose is accepting savings

deposits and paying interest on those deposits.

They originated in Europe during the 18th century with the aim of providing access to savings
products to all levels in the population. Often associated with social good these early banks
were often designed to encourage low income people to save money and have access to
banking services. They were set up by governments or by or socially committed groups or
organizations such as with credit unions. The structure and legislation took many different
forms in different countries over the 20th century.
70 savings banks or thrift banks in the Philippines, authorized and supervised by the

In a traditional savings bank that just takes deposits and invests them, no other financial
products are available. A savings and loan provides loans, usually home loans, although
sometimes personal and vehicle loans are available as well. It may also be able to refinance
existing loans. Some banks expand their financial services to offer financial advice, debit
cards, and similar services, and the line between a savings bank and other kinds of
depository institutions can be blurry.
Savings banks provide a very safe, reliable form of investment. Deposits are insured and
depositors will not lose the money they leave with the bank. The interest earnings are also
lower than with other kinds of investments, reflecting the lower risk. When making decisions
about where to invest to build up a stock of capital for the future, it can be a good idea to
place some money in savings where it will be safe, and to consider holding some back for
riskier investments that may yield a higher return.

Bangko Sentral ng Pilipinas,

Savings Banks
A savings bank is a financial institution that accepts deposits of savings from members of the
general public who want a safe place for their extra earnings so they will be available when
needed. The bank invests the money, paying out interest on the deposits and using the rest
to generate profits for the owners. A true savings bank just accepts deposits, while a savings
and loan also extends loans, using the loans as investments.

1. Mutual or Trustee Savings Banks. The savings bank started as a mutual savings
association and is commonly regarded as a benevolent institution. A mutual savings bank is a
financial establishment which receives deposits up to a fixed maximum amount from
individuals, provides safe-keeping for the funds and, having aggregated them, invests them in

The origins of the savings bank appear to lie in the 18th to 19th century. In some cases, the
bank has private ownership, while in others, it may be publicly traded, offering shares to
members of the public. At a mutual savings bank, the depositors own the bank, with shares
based on the amount of money they have on deposit. The shareholders receive periodic
dividends from the bank, and these may vary in size depending on the amount of money it
earns.

securities declared by the estate legislature legitimate for trust funds; the interest from these

Depositors have the option of placing a time deposit or demand deposit at a savings bank. In
a time deposit, the customer loans money to the bank for a set period of time, agreeing not to
use it, and receives a higher interest rate in exchange. On a five year certificate of deposit, for
example, the bank has exclusive use of the money for five years. In an emergency, the
customer can access it, after paying a penalty fee. Demand deposits allow customers to
withdraw money at any time.

capacity guides the legislature in defining eligible investments. The deposits received are not

investments, after the bank's expenses are deducted, accrues to the depositors in proportion
to their deposits. The relation between depositor and bank is one of trust; the funds of the
bank are held by its officers as trustees; the assets, profits, and losses are distributed ratably
among depositors, and the officers get no profits, but receive trustee fees. The rate of interest
on the investments is generally very low, for the reason that safety rather than earning
subject to check, nor are they subject to withdrawal except by pass-book and due notice of
30, 60, or 90 days, varying with the bank and the amount to be withdrawn. The pass-book
constitutes the contract of deposit; the terms are described therein; entries and signatures in
it become very important from a legal point of view. The depositor is moved to make the
deposits by the motive of thrift and the interest inducement offered by the bank; he does not
expect to withdraw them soon inasmuch as they represent his savings. He does not have the

privilege of paying by check which the commercial bank accords nor does he get short-term

Instead of capital stock and shareholders, this type of savings bank has "special deposits"

accommodation. The savings bank invests in long-term securities and not (though recently to

and "special depositors." It pays a certain stipulated rate of interest to its general depositors,

a limited degree in some states) in short-term commercial paper; its deposits turn slowly and

and any surplus earnings go to the special depositors. The special deposits constitute a

it relies on its ability, within the period of notice of intended withdrawal of deposits, to sell its

guaranty fund for the general depositors and are limited to 10 per cent of the total deposits.

securities at other than sacrifice prices. Mortgages and bonds form the bulk of such a bank's

Except for their name and the method of determining their amount, these special deposits

investments.

have all the characteristics of the capital stock of joint-stock banks.

2. Joint-Stock Savings Banks. In the West and South the dominant type of savings bank is
the joint-stock bank, an institution which, like a commercial bank, is conducted for the profit of
the shareholders. Deposits are received as in other savings banks, but instead of the
depositors being paid a net return from the investments above expenses, they receive a
definite rate of interest as arranged at the time of making their deposits. The margin between
the earnings of the investments and the interest paid on deposits constitutes the sum that
covers expenses and profits to the stockholders. These net profits the shareholders divide on
the basis of shares owned.
While joint-stock savings banks may contribute as much to the economic and social welfare
as trustee savings banks, they are purely private business enterprises and not eleemosynary
institutions. In the trustee savings bank the risk of high or low earnings and of loss of principal
is borne by the depositor; in the joint-stock bank the shareholders assume these risks and
guarantee the interest and principal to the depositor. In the former the depositors, being

There are many other kinds of savings banks which are too numerous to describe here; for
instance, the municipal savings banks school savings banks postal savings banks, and
various groups of co-operative credit institutions, such as building and loan associations,
farmers' co-operative credit societies, and the new farm loan bank system. The co-operative
credit institutions, while formed primarily to provide on their joint credit long-term credits on
realty at lower rates than the co-operators could obtain on their individual credit, tend to fulfill
much the same social and economic ends as other savings banks.
Functions Of Savings Banks
The essential economic and social functions of savings banks are three in number, as
follows:
1. They assemble the capital of the community, conserve the idle wealth, and having
aggregated it into sizable funds, loan it to business enterprisers.

creators of a trust, have the control; in the joint-stock bank they are simply creditors and have

2. They add to the peace and comfort and available consumption of society by providing a

no voice in its management. The mutual type prevails in New England and the eastern states

safe outlet for the funds of those who have the will and capacity to save but do not have the

where the historical and social conditions are favorable to it, where the communities are old,

ability either to use the funds industrially themselves or to invest them with safety and profit.

sentiment strong, and a philanthropic and public-spirited attitude is prevalent; it is not adapted
to the West, which is dominantly commercial, nor to the South still impoverished from the
Rebellion and lacking on the whole a thrifty population. The trustee who starts a mutual bank
gains no financial advantage from it; in fact, he assumes a large risk and responsibility to the
community. He must be a man of highest type, holding the unswerving confidence of the
depositors, not only as to personal character but also as to business capacity; he acts
primarily from philanthropic motives, although some lawyers and other business men may
promote mutual banks for the purpose of gaining clients.
3. Guaranty and Other Types of Savings Banks. New Hampshire is unique in having a hybrid
type of savings bank, combining the chief features of the two previously mentioned types.

3. They Promote Thrift More Than Any Other Financial Institution.

The prudent investment of interest and accumulated principal, which together constitute
savings, lessens profligacy, provides against the adversities of old age and sickness, helps
the thrifty to buy a home and to enjoy better living conditions, builds up independence and
stability of character, and improves the social and political life of the community.

Here are the top savings banks in the Philippines, based on Total Assets as of December
2010.
We did the ranking of thrift banks, based on the banks' balance sheets as of December
2010,
published
by
the
Bangko
Sentral
ng
Pilipinas.
Rank Savings Bank

Assets in Billion Pesos

1. BPI Family Savings Bank

138.696

2. Philippine Savings Bank (PSBank)

103.419

3. RCBC Savings Bank

57.816

4. Planters Development Bank

50.755

5. HSBC Savings Bank (Phils)

25.390

6. Sterling Bank of Asia

23.675

7. Philippine Business Bank

22.153

8. Robinsons Savings Bank

21.854

9. The Real Bank

11.881

10. City Savings Bank

8.994

11. First Consolidated Bank

7.322

12. Citibank Savings

7.003

13. LBC Development Bank

6.391 *****

14. UCPB Savings Bank

6.168

15. Malayan Bank Savings & Mortgage Bank

5.968

16. BPI Direct Savings Bank

5.889

17. Producers Savings Bank

5.788

18. Premiere Development Bank

5.455

19. Philippine Postal Savings Bank

5.317

20. China Savings Bank

5.103

21. Equicom Savings Bank

3.998

22. GSIS Family Bank

3.575

23. Allied Savings Bank

3.488

24. Luzon Development Bank

2.485

25. Citystate Savings Bank

2.475

26. United Overseas Bank Phils

2.439

27. Wealth Bank A Development Bank

2.060

28. Legaspi Savings Bank

1.912

29. BDO Elite Savings Bank

1.474

30. Queen City Development Bank

1.439

31. World Partners Bank

1.334

32. Tong Yang Savings Bank

1.246

33. Hiyas Savings and Loan Bank

1.238

34. Optimum Development Bank

1.157

35. BPI Globe Banko Savings Bank

1.132

36. Bank One Savings

1.121

37. Dumaguete City Development Bank

1.079

38. Isla Bank

1.062

39. Century Savings Bank

1.061

Here are the 40 top savings banks in the Philippines, based on total assets as of March
2014, sourced from data published by the Bangko Sentral ng Pilipinas on its website.
Only these 40 savings banks out of 69 savings banks or thrift banks surpassed the onebillion-peso
mark in
total
assets
as
of
March
2014.
RANK

BANK

ASSETS

RANK

MAR

BILLION

DEC

2014

PESOS

2013

1. BPI Family

206.639

2. PSBank

139.915

3. RCBC Savings

68.808

4. Planters Development

50.024

5. Philippine Business

49.128

6. City Savings

34.619

7. HSBC Savings

27.224

8. Sterling Bank

26.954

9. China Bank Savings

19.096

10. Allied Savings

14.938

12

11. UCPB Savings

12.656

10

12. BPI Direct Savings

12.370

11

13. Security Bank Savings

11.145

14

14. First Consolidated

10.624

13

15. PR Savings

9.642

16

16. Producers Savings

8.055

17

17. Philippine Postal

7.749

19

18. Real Bank

7.654

18

19. Malayan Bank Savings

7.044

20

20. 1st Valley Bank

6.825

22

21. Citibank Savings

6.666

15

22. Equicom Savings

6.461

21

23. Wealth Development

5.166

23

24. Luzon Development

4.022

24

25. Citystate Savings

3.642

25

26. United Overseas

2.577

31

27. Legazpi Savings Bank

2.475

23

28. Penbank

2.309

27

29. Enterprise Bank

2.102

28

30. Queen City Development

1.746

30

31. ComSavings Bank

1.708

29

32. Optimum Development

1.429

32

33. BPI Globe Banko

1.389

26

34. Hiyas Banking

1.351

34

35. Bank One Savings

1.292

35

36. CARD SME Bank

1.250

37

37. Dumaguete City Development

1.201

36

38. Century Savings

1.159

38

39. Tong Yang Savings

1.117

39

40. Isla Bank

1.056

40

Source: http://www.banksphilippines.com/