It’s easy to assume that savings accounts and time deposits are interchangeable—they both serve the fundamental purpose of helping you keep and grow your money, after all. But while they share similarities, they function in different ways and are designed for different financial objectives. One gives you the flexibility to access your funds whenever you need them, while the other rewards you for setting money aside for a fixed period. Instead of choosing one over the other, a well-rounded financial strategy often includes both.
As the Philippines’ #1 digital bank and one of the best banks to open an account in the country, Maya offers some of the most competitive savings and time deposit solutions available today. Our high-interest savings solution Maya Savings is ideal for those who want easy access to their money while still earning substantial returns. Maya Time Deposit Plus, on the other hand, allows you to maximize your savings with high fixed interest rates in exchange for a commitment period. Both products, ultimately, are designed to help Filipinos build their wealth efficiently.
To help you determine which option best suits your financial needs, let’s explore the key differences between savings accounts and time deposits. Once you understand their distinct features, you’ll be able to make smarter decisions about how to manage your money.
Interest Rates and Earnings
Savings accounts typically offer lower interest rates because they allow unrestricted access to funds. Many traditional banks in the Philippines provide savings accounts with interest rates below 1% per annum, which often isn’t enough to keep up with inflation. However, Maya Savings changes the game by offering a base rate of 3.5% per annum, with the potential to boost it up to 15% per annum through everyday transactions like paying bills, buying load, and paying for online purchases. This makes it a much more rewarding Philippine bank account than your average traditional bank accounts.
Meanwhile, time deposits generally offer higher, fixed interest rates because the money remains untouched for a set period. With Maya Time Deposit Plus, your funds start earning at 3.5% per annum from the moment you deposit. However, once you reach your set target amount and complete your chosen term duration, your rate gets boosted depending on the term length:
- 3-month term: 5% per annum
- 6-month term: 6% per annum
- 12-month term: 5.50% per annum
Your access to the boosted interest rates in this case depends not on your banking activity but on your commitment to seeing your deposit to maturity. This structure ensures that you earn competitive returns immediately while being additionally rewarded for long-term savings discipline.
Accessibility and Flexibility
A savings account is designed to be easy to access. You can deposit and withdraw money at any time through an ATM, online banking, or fund transfers. There are no penalties or restrictions on withdrawals, which makes it the ideal choice for your daily transactions, emergency funds, or short-term savings goals. With Maya Savings, you get the added benefit of daily interest, meaning your money continues to grow even as you use it.
On the other hand, time deposits limit access to your funds in exchange for higher returns. Once you place money in a time deposit, it stays there for a predetermined term—such as 3, 6, or 12 months—before you can withdraw without penalties. Maya Time Deposit Plus does allow early withdrawal if necessary but take note that starting April 30, 2025, any new Time Deposit Plus account will be subject to a 1% cancellation fee on your ending balance if pre-terminated before maturity. Accounts opened before April 30, 2025 will continue to have a 0.50% cancellation fee.
Minimum Balance Requirements
Traditional savings accounts often require a minimum maintaining balance to avoid fees or qualify for interest earnings. Fortunately, Maya Savings has no maintaining balance requirement—you can start earning interest immediately, regardless of your deposit amount. This makes it an attractive option for those looking to build their savings from scratch without worrying about balance restrictions.
Time deposits, on the other hand, typically require a higher initial deposit since they involve locking in funds for a set term. With Maya Time Deposit Plus, you can open an account with any amount, but to qualify for boosted interest rates, you’ll need to meet a minimum target balance of PHP 5,000. This ensures you’re getting the best possible return on your investment.
Ideal Use Cases
Choosing between a savings account and a time deposit isn’t about picking one over the other—it’s about understanding when to use each one to your advantage.
When to Use a Savings Account
- You need quick access to your money for emergencies or everyday expenses.
- You want to earn interest on your savings without locking in funds.
- You prefer flexibility in managing deposits and withdrawals without penalties.
- You want to increase your earnings through boosted interest rates, as offered by Maya Savings.
When to Use a Time Deposit
- You have extra funds that you don’t need to access frequently.
- You want to secure a higher fixed interest rate without market fluctuations.
- You’re saving for a long-term goal, like a major purchase or future investment.
- You want a disciplined savings approach that prevents impulse spending.
It’s possible—and in fact even advisable in many cases—to use both of these solutions to balance liquidity and growth. With the right savings and time deposit solutions in your corner, your money will always be working for you in the best possible way.
Knowing how to use solutions like time deposits and savings accounts to your advantage is a key step toward building a strong financial future for yourself. Start making your money work smarter by banking with Maya, the Philippines’ premier digital bank. If you’re wondering how to open a bank account with us, you can complete the process fully in minutes via the Maya app. We look forward to serving you!
