GoTyme Bank, the joint venture between Gokongwei Group and the digital banking firm Tyme, is now officially one of a few financial entities in the country to offer a 5% annual percentage yield (APY) for a savings product, specifically ‘GoSave’ which features automated deposits and transfers and previously provided 3% APY with no conditions and limits.
This comes after the Bangko Sentral ng Pilipinas (BSP) decided to raise the interest rate on the overnight reverse repurchase facility by 25 basis points to 6.25%, resulting to overnight deposit and lending facilities now being set to 5.75% and 6.75%, respectively.
According to a statement from GoTyme Bank, while the decision to increase the savings interest rate from 3% to 5% has already factored in potential movements up until the end of this year, significant changes to the economic condition can potentially trigger a price revisit to ensure that their customers’ funds grow in accordance to economic indicators.
“This has been another big step for GoTyme and banking here in the Philippines. In the coming months, we will continue to take more big steps towards our promise of delivering next level banking to all Filipinos. This will include adding hundreds of new kiosks and ambassadors, adding thousands of new deposit and withdrawal points, and as importantly, adding new products such as QR and bill payments to our beautiful, safe, and secure mobile app,” said GoTyme Bank president and CEO Nate Clark.
Clark also elaborated on the automated saving tools that the GoSave product provides – the first being ‘Auto-Save’ which allows users to auto-transfer a set amount of funds into their GoTyme savings account on a periodic basis, and ‘Save the change’ which rounds up any transaction made using the GoTyme visa debit card to the nearest 10 or 100 pesos and deposits the extra amount into a separate GoSave account.
“These small automations and nudges help you build the right habits and behavior to achieve your savings goals faster than ever before. I’m pleased to share that the market response and customer excitement has far exceeded our expectations and this support has inspired and pushed us to move faster towards our ultimate mission of unlocking the financial potential of all Filipinos,” he added.
Overseas, GoTyme Bank’s parent Tyme also announced a savings account interest rate hike to 10%, which was previously 8%, subject to a few conditions that include depositing a set amount to the TymeBank account on a monthly basis at a similar time, and that the overall deposit does not exceed R100,000.
Prior to the new announcement, GoTyme Bank partnered with Cebu Pacific and Go Rewards back in February to boost the amount of Go Rewards points earned by customers who pay for their flights under Cebu Pacific via GoTyme Bank’s Visa debit or virtual card.
This program builds on the promo launched in October of last year which entitles Go Rewards account holders to triple the amount of the usual points gained at checkout just by using GoTyme Bank’s payment facilities.
“We look towards the future with great hope and excitement as we make banking more accessible, secure, and rewarding to all Filipinos. All of this is backed by the safety and security of a technology platform that has been proven at scale, a BSP bank license where your deposits are insured, and the financial security and trust that is brought by our majority shareholder: the Gokongwei group,” Clark concluded.
