If you’re looking for an alternative to traditional banks and digital banks, one great option you might want to explore is joining a cooperative (co-op) and opening a savings account with them.
In the Philippines, cooperatives are member-owned organizations that provide financial services like savings and loans to their members. Unlike commercial banks where profits go to shareholders, in a co-op, the profits are shared back to the members through dividends and patronage refunds.
But how exactly do you open a cooperative savings account? Let’s break it down step by step.
Why Choose a Cooperative Savings Account?
Before we dive into the process, here are some reasons why many Filipinos prefer co-op savings accounts:
- Higher interest rates compared to regular bank savings accounts
- Dividends and patronage refunds since you’re also a co-owner of the co-op
- Access to affordable loans with lower interest rates
- Community-focused—your money helps fund loans for other members in need
- Flexible requirements compared to stricter banks
Step-by-Step Guide to Opening a Cooperative Savings Account
1. Find a Cooperative Near You
Look for a cooperative that’s accredited by the Cooperative Development Authority (CDA). You can choose from multipurpose cooperatives, credit cooperatives, or transport/agri-based co-ops that also offer financial services.
2. Attend the Orientation
Most co-ops require you to attend a Pre-Membership Education Seminar (PMES). This ensures you understand your rights and responsibilities as a member-owner.
3. Pay the Membership Fee and Share Capital
To become a co-op member, you need to invest in their share capital. This varies per cooperative but usually starts at ₱1,000 to ₱5,000. Some also charge a small membership fee (₱100–₱500).
4. Submit the Requirements
Here are the common requirements when opening a savings account in a cooperative:
- Valid government-issued ID
- 1–2 pieces of 1×1 or 2×2 ID pictures
- Proof of billing or residence (sometimes required)
- Duly filled-up membership form
5. Deposit to Your Savings Account
Once approved, you can now make your initial deposit to your savings account. Some co-ops allow as low as ₱100 initial deposit.
6. Start Enjoying the Benefits
As a member, you now have access to:
- Savings account with competitive interest rates
- Loan programs (salary, emergency, livelihood, etc.)
- Dividends (depending on the co-op’s performance)
Things to Remember Before Joining a Co-op
- Check if the co-op is registered with CDA to avoid scams.
- Ask about their interest rates, dividend history, and fees.
- Understand your responsibility as a member-owner—you’re not just a depositor, you’re also a co-owner.
- Some co-ops require regular contributions to maintain membership.
Blogger’s Corner
Opening a cooperative savings account in the Philippines is a smart move if you want higher returns and a more community-centered approach to saving. Unlike banks, your relationship with a co-op is not just customer-to-institution—you become a part of the organization.
If you’re tired of low bank interest rates, joining a cooperative might just be the financial move you’ve been looking for.