PERSONAL FINANCE Savings

Why I Closed my BPI Save-Up Automatic Savings + Insurance Account and How To Do It

November 23, 2016
Two years ago I opened my BPI Direct Save-Up plus Insurance account to kick-start my emergency fund. I have featured it in a first impression review as soon as I received my Info Card in February 2014 and a blog update in October 2014. Just like the others I got really excited with the word “insurance” alongside this particular savings account from BPI. I believe everyone would love to save and to get insured at the same time. But last November 4 I decided to deactivate or cancel my BPI Save-Up plus Insurance account.

Quick Review

The BPI Save-Up Automatic Savings + Insurance is a product of BPI. With this account you can:
  • Save without any initial deposit.
  • Easy enrollment via BPI Express Online. No need to go to nearest BPI branch and present your IDs.
  • Enable automatic deposit to your Save-Up account. Decide how much you want to save per payday or every month and it will be transferred from your savings account to your Save-Up account automatically.
  • Secure your savings without the ability to withdraw on your account. Instead of a Debit or ATM you will be given an Info Card which serves as your proof identification in case you’ll be needing the insurance.
  • Earn interest rate of .500% per annum.
  • Monitor your BPI Save-Up Automatic Savings + Insurance online at www.bpiexpressonline.com. You will see your account real-time together with the rest of you BPI accounts.
  • Get FREE Life Insurance. As I mentioned in my BPI-Direct Save-Up + Insurance First Impression Review this is the main reason why I enrolled for the account. The insurance makes your savings more than just the usual savings account. The amount of your coverage is equal to as much as 10x your account balance. 
  • Basic Life : 5X the account’s average Month-to-Date Average Daily Balance (MTD-ADB) of the past three calendar months with a maximum amount of P2,000,000 regardless of the number of accounts opened by the insured individual.

Meaning if your account balance is 100,000 for the past three calendar months you will get 500,000 basic life insurance.

Accidental Death: Additional 5X the account’s average Month-to-Date Average Daily Balance (MTD-ADB) of the past three calendar months up to P2,000,000 regardless of the number of accounts opened by the insured individual.

Meaning if your basic life insurance costs 500,000pesos then it will gain additional 5x the accounts MTD-ADB making you have almost 1million worth of insurance for accidental death.

Accidental Dismemberment: 5X the account’s average Month-to-Date Average Daily Balance (MTD-ADB) of the past three calendar months with a maximum amount of P2,000,000 independent of the number of accounts opened by the insured individual.

Meaning if your account balance is 100,000 for the past three calendar months you will get 500,000 basic life insurance.

Now with the above benefits and information you may wonder why I chose to close my BPI Save-Up Automatic Savings + Insurance account. Let me tell you that it wasn’t an easy decision to be honest. I consider this account as one of the best ever because your savings comes with an insurance already. No other bank can give such advantage. But with sudden change in my situation, priorities and goals I decided it is time to bid goodbye to the account. 

Bye BPI Save-Up!!! 🙁
Why I Closed my BPI Save-Up Automatic Savings


Reason #1. Switch of payroll account


When I opened my BPI Save-Up Automatic Savings + Insurance account I was still working as a SEO Content Writer (January 2014). My ex-company use BPI for payroll account so opening the account is very easy as well as managing how much and how frequent I want to save. Now in my current job (got hired February 2014) we use Metrobank for payroll account so if I need to deposit monthly to my BPI in order to fund my BPI Save-Up Automatic Savings + Insurance account. It was too much of a hassle for me to be honest.

Reason #2. Lack of fund to sustain the account


Now because I switched bank account I have no means to sustain my BPI Save-Up account. Also the process it takes to fund the account is very stressful. First I need to withdraw from Metrobank  then deposit to my BPI account.  And let me tell you how the “automation” became a negative on my situation. I chose to be deducted 500pesos every 6th and 21st of the month automatically. This will not change unless you informed BPI. Now my current payroll is every 15th and 30th which is very different from my previous company. The situation became really chaotic because I don’t know how to maintain my Save-Up account anymore. READ: All About Metrobank Direct Online Banking
 

Reason #3. Too much bank accounts


Another reason why I decided to cancel my account is to once and for all get my finances in order. Too much bank accounts is not helping me at all. I have two Metrobank Savings Account, one BPI Savings Account and the Save-Up Automatic + Insurance Account. I realized that I’m fine with just the Metrobank and the BPI Express savings.


Metrobank Debit #1 is my payroll account. I also use this to pay for my FAMI-SALEF account. 

Metrobank Debit #2 is my new emergency fund account. I automatically transfer a portion of my income monthly to this account from my payroll. The amount I have in this account even exceeded what I have in my BPI Save-Up Automatic + Insurance. 

BPI Savings Account is my dedicated bank account for extra income. Any money from event hosting or freelance writing I do is deposited to this account. You can read more information about this in my recent Monthly Quick Recap + Extra Income Report.

I thing these three bank accounts work hand-in-hand to give me a much secured financial situation. Now I don’t have to be guilty that I am not saving enough. 


Reason #4. Investing my money is my current priority


Now that I’m done paying first year of my St. Peter Life Plan I am already entitled to a term life insurance as well as accidental death and dismemberment benefit from the company. READ HERE to know more. With this plus my Metrobank Debit #2 for new Emergency Fund and BPI Savings Account for Extra Income I am more than willing to invest on direct stock market next. I am still young and able so growing my money through proper investing is what I am prepared to do.
Pic I took when I received my BPI Save-Up Info Card
How to Close Your BPI Save-Up plus Insurance account?

I was surprised on how fast and easy closing a BPI Save-Up Automatic Savings + Insurance can be. It took me less than five minutes of explanation to a phone banker. Below is the step-by-step process I took plus additional information you need to know.
  1. Call the BPI Hotline 89-100. After the voice message press “0” so you’ll be directed to a phone banker.
Note: I called around 5pm on a Friday and I still got to talk to someone on the phone. You can call anytime, any day to get your account closed.
  1. The phone banker will ask your personal information as well as your BPI Save-Up Automatic Savings + Insurance  account number. He/She will also ask you how much your current money on the account is for further verification.
Note: You don’t need your Info Card to close your account. You can easily see your BPI Save-Up Automatic Savings + Insurance account number when you access your BPI Express Online account.
  1. Now tell the phone banker that you wish to close your BPI Save-Up Automatic Savings + Insurance account. He/She will then explain to you how the process goes.
    • It will take five working days for your Save-Up account to be closed. In my experience I called on a Friday and my account is already closed the following Monday. Your Save-Up account will disappear in your BPI Express Online dashboard.
    • Before they cancel your account you need to transfer whatever amount you have in your BPI Save-Up Automatic Savings + Insurance to your regular BPI Savings Account. This means you have to zero out your Save-Up account. Note: Whatever money you have in your BPI Save-Up Automatic Savings + Insurance will be automatically transferred to the BPI Savings Account you used in opening your Save-Up account upon cancellation. 
Things That I Learned

On my last update I mentioned how I learned the importance of automatic saving. I still do the automation on my new emergency fund. This is the main learning and habit that opening BPI Direct Save-Up brought in my financial life. I realized that automation is the real king.

Saving for an emergency fund does not rely on the bank account you use. Your commitment is the one that plays a big factor for you to build an emergency fund successfully.

The word “insurance” can be very enticing but in case the account doesn’t work for you don’t be afraid to close it and move on. The most important thing is that you have financial peace in your life.

Additional Information
  1. Every month your BPI Save-Up Automatic Savings + Insurance is not within the minimum balance you will be deducted an amount of 200pesos. Minimum maintaining balance is 1,000pesos.
  2. You can still apply for a BPI Save-Up Automatic Savings + Insurance even if you closed your first account. I’m not closing my doors to the account at all. Maybe in the future I will open a new one.
  3. You can also do the same step-by-step process in case you wish to change only the amount of automatic savings you input or the frequency of automation. For example upon opening the account you decided to automatically transfer 1,000pesos every 25th of the month. Now you want to you want to increase or to decrease the amount of money you save or the date when your savings is automatically deducted. All you have to do is call the BPI Hotline and talk to the phone banker.
  4. You don’t have to go to BPI branch for closing your account and no need to prepare any other document.
Final Words from SavingsPinay

My decision to close my BPI Direct Save-Up may come as a surprise to some of you. I do still consider opening the BPI Direct Save-Up plus Insurance as one of my big financial decision and I’m glad I did it. The account may work wonder for some but at the moment I don’t see any reason to continue it. Assess your financial situation right now and if something is not working don’t be afraid to resolve it. Let me know your experience with BPI Direct Save-Up plus Insurance account and whether you successfully built an emergency fund with it. 🙂

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What can you say about my decision to close my BPI Save-Up Automatic Savings + Insurance account? 
Do you think I made the right decision? 
How’s your savings so far??

Clariza Glino

Izza of SavingsPinay promotes financial literacy for the young and young at heart by providing insights and tips on budgeting, saving, investing and online entrepreneurship. Aside from this blog she also writes at www.izzaglino.com, a beauty and lifestyle blog for frugal Pinays and manages, www.izzagevents.com, a wedding and event business since 2011. For inquiries, topic suggestions or future collaborations email her at izza@savingspinay.ph