By Andre Alfonso R. Gutierrez
The Land Bank of the Philippines has rolled out a savings product designed to offer both higher interest rates and free insurance coverage, signalling a new strategy to deepen financial inclusion and client retention in the country’s highly competitive banking sector.
The newly launched OptiSaver Plus account aims to provide Filipinos with more than just a place to park their money.
It offers interest rates of up to 4% per annum and links savings to insurance benefits, making it a hybrid product that appeals to both savers and the financially cautious.
Account that comes with added perks
The savings account automatically includes free personal accident or life insurance, depending on the account holder’s average daily balance (ADB).
A minimum ADB of PHP50,000 ($870) qualifies depositors for either personal accident or life insurance, while clients maintaining PHP20 million ($348 250) or more receive both coverages.
The insurance benefit, pegged to the depositor’s balance, provides a safety net in the event of injury or death caused by accidents.
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“With the LandBank OptiSaver Plus, we are empowering our clients to achieve financial growth while securing their future.”
“By combining the benefits of higher savings potential and built-in financial protection, we are ensuring their hard-earned money works even harder for them,” said LandBank President Lynette Ortiz in an interview with the Philippine News Agency.
Analysts say this strategy could encourage account holders to maintain higher deposit levels for longer periods, given that insurance benefits are directly tied to the account balance.
Different options for access
The OptiSaver Plus also supports unlimited deposits and withdrawals, and is accessible via LandBank’s digital platforms and over-the-counter transactions using a passbook.
Existing OptiSaver accounts will be automatically upgraded, though customers will need to visit a branch to complete formalities for insurance eligibility.
LandBank’s move reflects broader trends in Asia where state-run financial institutions are taking innovative approaches to bring more citizens into formal banking systems.
The Philippines, with millions still considered underbanked, has seen a surge in digital and hybrid banking products as both public and private players seek to reach a wider population.
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