If you’ve been seeing Salmon Bank pop up in ads or finance discussions lately, you’re not alone. The bank has been aggressively marketing its high-interest time deposits, which are noticeably higher than what traditional banks offer.
But what exactly is Salmon Bank, what interest rates do they offer, and is it actually worth parking your money there?
Let’s break it down.
What Is Salmon Bank?
Salmon Bank is a BSP-licensed rural bank operating digitally in the Philippines. It focuses on consumer banking products such as:
- Savings accounts
- Time deposit accounts
- Consumer loans
Despite being “digital-first,” it is still a regulated bank and PDIC-insured—which is important if you’re considering putting in a large amount.
Salmon Bank Interest Rates (Philippines)
Salmon Bank is best known for its time deposit rates, which are significantly higher than most traditional banks.
Savings Account Interest Rate
- Around 3% per annum (gross, before tax)
- Comparable to some digital banks, but not the highest in the market
Savings accounts are more for liquidity, not for maximizing returns.
Time Deposit Interest Rates
This is where Salmon Bank really stands out.
Standard Time Deposit Rates (Gross, Before Tax)
- ₱50,000 to ₱499,999
Around 6% per annum - ₱500,000 to ₱999,999
Up to 6.5% per annum - ₱1,000,000 and above
Up to 8% per annum for selected tenors
Interest is subject to the standard 20% withholding tax, just like other bank deposits.
Promotional Time Deposit Offers
Salmon Bank occasionally runs promos where rates go even higher for larger placements and longer lock-in periods.
Examples include:
- 8% p.a. for deposits of at least ₱1 million
- Past limited promos reaching 8.88% p.a.
These are usually time-bound, so rates may change depending on when you open your account.
Is Salmon Bank Safe?
Yes—with some context.
- BSP-regulated
- PDIC-insured up to ₱1,000,000 per depositor
- Operates as a rural bank with digital banking features
As with any bank, PDIC insurance means you should ideally spread funds beyond ₱1M if you’re risk-conscious.
Pros and Cons of Salmon Bank
Pros
- Much higher time deposit rates than traditional banks
- Regulated and PDIC-insured
- Good option for idle cash you don’t need immediately
Cons
- Funds are locked in during the time deposit term
- Early withdrawal usually means much lower interest
- Not ideal if you need frequent access to your money
Who Is Salmon Bank Best For?
Salmon Bank makes sense if you are:
- Sitting on idle cash you won’t need for months or years
- Looking for low-risk, predictable returns
- Comfortable locking in funds for a fixed term
It’s not ideal for emergency funds or money you’ll need short-term.
Salmon Bank vs Digital Banks
Compared to most digital banks:
- Salmon’s savings rate is average
- Its time deposit rates are among the highest available
Think of Salmon Bank less as a daily transaction bank and more as a parking space for long-term cash.
Blogger’s Corner
High interest rates always attract attention, and Salmon Bank is clearly positioning itself as a time-deposit-focused bank, not a daily savings app.
Personally, I see Salmon Bank as a “lock it and forget it” option—useful if you already have an emergency fund elsewhere and just want better returns on excess cash.
As always, don’t chase interest blindly. Understand the lock-in, spread your risk, and never place money you might need urgently.
Frequently Asked Questions
Is Salmon Bank legit?
Yes. It is licensed by the BSP and insured by PDIC up to ₱1 million.
Are Salmon Bank interest rates guaranteed?
Rates are fixed for the duration of your time deposit, but new placements may have different rates depending on current promos.
Is there tax on interest?
Yes. All bank deposit interest is subject to 20% withholding tax.