Guide to Union Bank Dollar Savings Account: Fees, Exchange Rates

Whether you work abroad or remotely, getting paid in a foreign currency adds an extra layer of complexity. You may want to exchange it for Philippine pesos immediately or save it, but the exchange rate can be a concern. One way to solve this problem is to keep a savings account in the Philippines that is held in U.S. dollars.

Union Bank offers a U.S. Dollar Savings account designed for individuals who want to save and manage their money in US dollars. Read on to learn more about Union Bank Dollar Accounts and everything you need to know about opening and operating one in the Philippines.

What is the Union Bank US Dollar Savings Account

Union Bank has a U.S. Dollar Savings Account to help Filipinos who want to hold their money in U.S. dollars, not pesos. This account is a savings vehicle and can help you navigate fluctuations in the exchange rate.

With a Union Bank US Dollar Savings Account, you can receive U.S. dollars from family, friends or clients abroad. All you need to provide is your account number and the relevant banking information, avoiding conversion charges and simplifying international transfers.

A U.S. Dollar Savings Account is held in dollars and you can access your funds through Union Bank online banking, Bancnet ATMs at home and Visa ATMs worldwide.

Union Bank offers a linked Visa debit card and a 0.05% interest rate on U.S. Dollar Savings Account balances above $1,000 USD.¹

In addition to the Union Bank US Dollar Savings Account, Union Bank also offers the Dollar Access Account. The accounts are similar but with minor differences. The Union Bank Dollar Access Account requires a higher initial deposit of $10,000 USD, but it also offers additional benefits.

Thinking of opening a dollar account at Union Bank? Check out our next section on what is required.

Requirements for Opening a Union Bank Dollar Account

Here are the requirements to open a Union Bank Dollar Account:²

• Be a Filipino citizen
• Have a PH phone number
• Have a residence in the Philippines
• Valid ID
• Ability to go to a Union Bank branch

Keep in mind that the initial deposit for a Union Bank Dollar Savings Account is $500 USD and for the Access Account is $10,000 USD. PDIC insures each depositor up to ₱500,000 PHP.³

Minimum Balance Requirements for Union Bank Dollar Account

The Union Bank Dollar Savings Account requires a minimum average daily balance to avoid penalties and earn interest:⁴

• The minimum ADB requirement to avoid penalties is $500 USD.
• You must maintain a minimum ADB of $1,000 USD to earn interest on your deposits.

The Union Bank Dollar Access Account has its own requirements:

• The minimum ADB requirement to avoid penalties is $10,000 USD.
• You must maintain a minimum ADB of $25,000 USD to earn interest on your deposits.

How to open a Union Bank Dollar Account

To open a Union Bank US Dollar account you will need to complete a Know-Your-Customer (KYC) requirement, pay an initial deposit, and maintain the minimum balance stipulated by the bank. Let’s break down the steps:⁵

1. Head to your preferred Union Bank branch.
2. Complete the KYC which includes providing a valid ID and proof of address, like a copy of your latest utility bill. You can inquire about the account online but you’ll be required to go to a branch.
3. Complete the account opening form.
4. Pay the initial deposit of $500 USD.

How to withdraw money from a Union Bank Dollar Account

Union Bank offers a debit card with each Union Bank Dollar Account. You can use the card to withdraw cash from Visa ATMs worldwide for a fee or locally in the Philippines to withdraw cash from any Union Bank or Bancet ATM.⁶

In addition to using your debit card at ATMs, you can visit any Union Bank branch in the Philippines and withdraw money across the counter. You must provide your account details, fill out the required forms, and present your valid ID to withdraw cash.

You can also use online banking to transfer money from your Union Bank Dollar Account to another account. For example, if you are a freelancer and need the money to pay someone on your team, you can send money directly from your account.

Your Union Bank Dollar Account card also works for paying in dollars in the United States and withdrawing cash.

Union Bank Dollar Account Fees and Charges

Union Bank charges its customers nominal fees for various services, including for penalties for not maintaining the ADB, withdrawing cash from ATMs, requesting statements of accounts, sending checks for collection, and remittances. Let’s take a look at the Union Bank fees on Dollar Savings accounts.

Union Bank Dollar Account Fees

Here is the summary of Union Bank Dollar Account fees in various categories.⁷

*Exceptions for cash deposited across the counter

While regular cash deposits attract the abovementioned fees, these deposits are exempted.

1. Initial deposit of $500 USD to open a Union Bank Dollar Savings Account
2. Notes deposited to fund a USD Time Deposit Account
3. Amounts below $5000 USD or equivalent in currencies other than US dollars

There may be additional charges that are not listed above. Speak to a bank representative to go over all fees and charges so you know what to expect when operating an accout.

Lastly, there may be restrictions on using the debit card for a Union Bank Dollar Savings account:

1. There is a maximum withdrawal at an ATM of $1,000 USD
2. A daily transaction limit of $1,000 USD for point-of-sale and online purchases
3. Aggregate Daily Limit of $1,000 USD

Union Bank Foreign Currency Exchange Rates

Union Bank sets their own exchange rate, which can change frequently based on the market. Banks typically provide users a rate that is the mid-market exchange rate, which banks use amongst themselves, plus a mark-up. That’s why the rate can differ from what you see on Google, Reuters or Wise.

While a bank’s mark-up can seem small, it can add up quickly when you are sending or converting foreign currency and make a dent in how much you send. Want to send more the next time you make an international transfer? Check out Wise.

Meet Wise: Receive Money from abroad with low fees and mid-market exchange rate with Wise

Wise is a safe, low-cost and convenient way for international money transfers. Whether getting paid by a client or remitting money home, Wise can save you money on international transfers.

Using smart tech, Wise makes global transfers secure and cheap. There is only a low transfer fee and every transaction gets the real mid-market exchange rate- which means no mark-ups; saving you money.

Sign up for Wise today

And if you are an Overseas Filipino Worker, Wise can also be an easy and hassle-free way to send money home to your family.

Union Bank Dollar Account: Frequently Asked Questions

Can I Deposit Philippine Pesos to a Union Bank Dollar Account?

No, you can’t deposit Philippine pesos into your Union Bank Dollar Account. This account is specifically for depositing US dollars in cash or by transfers from overseas.

How do I Transfer Money from a Union Bank Dollar Account to a Philippine Peso account?

It depends on where the Philippine peso account is maintained:

1. In the same bank: You can initiate a fund transfer online or visit the branch for a local foreign exchange transfer. In this case, Union bank converts the dollar amount to local Philippine currency at the current exchange rate.
2. In different banks: You must initiate a SWIFT Fund transfer online or by visiting the local branch. You’ll need the recipient’s bank account details and SWIFT code. The processing can take three to five business days.
3. Through Wise: You can use Wise to send funds from your Union Bank dollar account to the Philippine peso account. You can complete the transfer from your computer or mobile with one low transfer fee and the real mid-market exchange rate.

Sources verified on 9 September 2024.