A CASE STUDY

March 1, 2011

Filosofo, Kristine MayNazareta, Abby Jeanette

Ponciano, RizaQuisora, Edlene

Tagarino, Hannah Gayle

BPI Direct Savings Bank

Savings and Loans Institution

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BPI Direct Savings BankSavings and Loans Institution

SAVINGS AND LOANS INSTITUTION

A savings and loans institution or S&L is a “financial institution that specializes in accepting savings deposits and making mortgage and other loans”. It is also known as “thrift”, a word which basically means “to save” – which provides one of the two main purpose of creating association of this kind: to help people save money, and to provide monetary assistance, by means of extending loans.

Though S&Ls are very rampant in the United States, there are only few banks or institutions which are focused in this purpose in the Philippines. There not many notable institutions engaging in this activity, including the Bataan Savings and Loan Bank, Cordillera Savings and Loan, Farmers Savings and Loan Bank and such, mostly of which can be found in rural areas. But there are also prominent firms which engage in this kind of activity such as the Bank of the Philippine Islands (BPI).

F IGURE 1 BPI OFFICIAL LOGO WITH COMPANY SLOGAN

BPI is the oldest bank in the Philippines still in operation and is the country’s third largest bank in terms of assets. Also, it is the country’s largest bank in terms of market capitalization, and is considered as the Philippine’s most profitable bank. It concentrates its savings and loans operation in two subsidiary banks: the BPI Direct Savings Bank and BPI Family Savings Bank. The former is oriented in the Overseas Filipino Community, while the latter is more concerned with local clients.

Since BPI Direct Savings Banks has a larger customer base, the group decided to look into its operations.

THE BPI DIRECT SAVINGS BANK

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Industry: Banking; Savings and Loans

BPI Direct Savings Bank or BPI Direct is a wholly-owned subsidiary bank of the Bank of the Philippine Islands (BPI). It is the first bank to be operating in “paperless envionment” for it is the only bank in the Philippines to be “highly dependent on telephone and online banking”, making it “one of the largest banks in the Philippines in those field”. This served as an expression of BPI’s commitment to high standard banking by the use of technology and creative management to provide excellent convenience to its customers.

F IGURE 2 BPI D IRECT SAVINGS BANK

The use of technology brought significant success for the bank because it is considered as a step forward by innovating banking experience as we know it. The use of online banking empowered its customers to manage their finances wherever they may be, and to take control of their money by prividing 24/7 banking. It broke the convention of observing office hours in banking which is quite a hastle especially for business people who always has a jampacked schedule. As its slogan says: “You bank away from home.”

F IGURE 3 BPI D IRECT SLOGAN

BRIEF HISTORY

BPI Direct is registered with the Securities and Exchange Commision to be on operation on September 26, 1986 primarily to engage in the “general business of savings and mortgage banking”. In 2000, it changed its image by engaging in telephone and online banking, changing banking experience as we know it, in orer to withsatand the

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hastle of traditional banking. It provided 24/7 banking experience, as well as traditional banking practices such as opening a savings account.

F IGURE 4 BPI D IRECT HOMEPAGE AT WWW.BPIDIRECT.COM

As time passed by, they started to use their advantage: online banking. Two years later, they concentrated their customer base on the Overseas Filipino Community, “without alienating its existing clientele”. Through the use of the World Wide Web (WWW) connection, their customer base expanded. Filipinos around the globe can now access their accounts and manage their finances, 24/7. Surpassing the traditional banking conventions. And because of this, BPI Direct decided to name itself “you bank away from home”, which ultimately became its slogan.

ONLINE ACCOUNT APPLICATION

The whole “online banking” thing simplifies the traditional banking system. BPI Direct offered a new way to open an acccount and even transact, online. By going to the banks official website, which is the www.bpidirect.com, you can fill up an online application form which warrants that opening an account with the bank is so much easy.

The application form first lets you choose which deposit account you want to apply, as enumerated below under “Procts and Services”, and then lets you choose you accoun ownership, whether it is single, or a joint account. After that, you should indicate where you are currently located, whether within or outside the Philippines. For joint accounts, the current location should be the same for both persons. You should also indicate you membership status with the BPI Express Online community. You should confirm that by opening an account in BPI Direct, you agree and is bound by its Terms and Conditions which is deliberately stated if you open thelink that directs to it.

PRODUCTS AND SERVICES

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The following are the online products and services offered by BPI Direct:

Express Teller Savings BPInoy Savings Save-up Automatic Savings + Insurance Maxi-Saver Saving Maxi-One Checking Time Deposits Auto Loan Housing Loan

BPI DIRECT EXPRESS TELLER SAVINGS

Opening an Express Teller Savings Account enables the owner to monitor and manage their accounts anytime, anywhere through the Bank’s “superior electronic channel”. (See Appendix A for Balance Requirements and Rates.)

F IGURE 5 BPI D IRECT EXPRESS TELLER SAVINGS AD

According to bpidirect.com, “this account allows you to:

Earn high interest on your deposit -- better than other regular savings accounts. Access your account through over 9,000 Expressnet, Bancnet, and Megalink ATMs nationwide. Withdraw cash from over 1 million Cirrus-affiliated ATMs in over 210 countries worlwide in the currency of

the country you are in. Enjoy higher ATM withdrawal limit of PhP 50,000 a day. Experience convenience by doing a host of banking transactions via the Bank's superior electronic banking

channels - BPI Express Online, BPI Express Phone and BPI Express Mobile.Transfer funds anytime, anywherePay bills from the comfort of your homeReload cellphones and prepaid cards instantlyView your account transaction details and even download your electronic statements from six months back in BPI Express Online

Deposit cash anytime, real-time without the assistance of a branch teller through the Bank's Express Deposit Machine. Your cash deposit will be credited to your account in an instant!

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Go cashless, worry-free shopping via the Express Payment System (EPS) at accredited establishments nationwide. No enrollment required.

Plus, your Express Teller Savings comes with a partner savings account -- BPI Direct Save-Up. It allows you to save automatically, just choose how much and how often and we'll do the rest for you. This means you never have to worry about setting aside money again, it will be automatic!

Open an account anytime – online”

BPINOY SAVINGS

Opening a BPInoy Savings Account safeguards overseas remittances and directly credits them to an account. (See Appendix A for Balance Requirements and Rates.)

F IGURE 6 BPINOY SAVINGS AD

BPInoy Savings Accounts offer the following benefits:

“No initial deposit required. No maintaining balance required as long as there is a remittance transaction at least once every 6 months. Earn higher interest, better than any other regular savings account. Access your account through over 9,000 Expressnet, Bancnet, and Megalink ATMs nationwide. Withdraw cash from over 1 million Cirrus-affiliated ATMs in over 210 countries worlwide in the currency of

the country you are in. Enjoy cashless shopping via the Express Payment System (EPS) at accredited establishments nationwide.

No enrollment required. Monitor your account balance, transfer funds, pay bills or reload cellphones through BPI ATMs, BPI

Express Phone, BPI Express Online or even via your cellphone with BPI Express Mobile. Open an account from anywhere in the world -- online.”

SAVE-UP AUTOMATIC SAVINGS + INSURANCE

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By opening a Save-up Automatic Savings Account, customers are encouraged to save their finances instead of splurging into useless things by providing certain benefits, plus it is insured. (See Appendix A for Balance Requirements and Rates.)

F IGURE 7 SAVE-UP AUTOMATIC SAVINGS + INSURANCE AD

BPI Direct Save-up involves the following benefits:

“Savings that's easy to start and build. Start your Save-Up account with no initial deposit. Build it up regularly from your ATM-based savings account while enjoying a higher interest rate.

Save what you can, when you can. Decide how much you want to save every payday or every month and it will automatically be transferred from your ATM-based savings account to your Save-Up account. When you have extra cash, no need for you to wait for your automatic schedule transfer - you can transfer funds anytime to your Save-Up account.

Secure savings, secure future. To help you build your funds, your Save-Up account does not come with an ATM card. This way you can really resist from withdrawing the funds you're saving.

Feel even more secure with FREE BPI-Philam Life insurance. Get FREE life insurance coverage with your Save-Up acount. No medical check-ups or premium payments required. The amount of your coverage is equal to as much as 10x your account balance* up to PhP 4 million!

Basic Life: 5x your account's average MTD-ADB up to PhP 2 million.Accidental Death: additional 5x your account's average MTD-ADB up to PhP 2 million.Accidental Dismemberment: in accordance with the Schedule of Dismemberment Benefits, up to PhP 2 million.

Watch your savings grow in real-time. Easily track your savings as it grows via BPI Express Online at www.bpiexpressonline.com or through BPI Express Mobile menu on your cellphone or BPI Express Phone.

Monitor your savings with the help of the Save-Up Info Card. Your Save-Up account comes with an Info Card that contains your account number, card number and Joint Account Indicator (JAI). This information is important when viewing your account. The Info Card also serves as proof of your FREE BPI-Philam Life Insurance.

Average Month-to-Date Average Daily Balance (MTD-ADB) of the past three calendar months prior to Insured's demise, regardless of the number of accounts opened by the Insured.”

BPI DIRECT MAXI-SAVERS SAVINGS

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By opening up a Direct Maxi-Savers Savings Account, the owner can enjoy bigger earnings without having their funds locked up. (See Appendix A for Balance Requirements and Rates.)

F IGURE 8 BPI DIRECT MAXI-SAVER AD

Direct Maxi-Savers Savings Accounts provide the following:

“Earn more as you save more. Get higher interest as you build your account balance. Maxi-Saver is the deposit product that gives you more opportunities to maximize your deposits.

Get a 1% p.a. BONUS Interest. If no withdrawal is made within the month, you will get 1% p.a. BONUS interest. Maxi-Saver helps you save your hard-earned money wisely.

Enjoy flexible and ready access to your funds. BPI Direct Maxi-Saver Savings comes with an Express Teller ATM card that allows you to conveniently manage and access your account 24/7 through the Bank's superior electronic banking channels -- BPI Express Online, BPI Express Phone and BPI Express Mobile. You can even open an account anytime -- online.”

BPI DIRECT MAXI-ONE CHECKING

By opening a Direct Maxi-One Checking account, the owner can enjoy all the combined benefits of a savings, an ATM and checking accounts in one superior account. (See Appendix A for Balance Requirements and Rates.)

F IGURE 9 BPI D IRECT MAXI-ONE AD

The following benefits can be obtained by opening a Direct Maxi-One Checking account:

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“Earn high interest on all your funds. Access your account through over 9,000 Expressnet, Bancnet, and Megalink ATMs nationwide. Withdraw cash from over 1 million Cirrus-affiliated ATMs in over 210 countries worlwide in the currency of

the country you are in. Enjoy higher ATM withdrawal limit of PhP 50,000 a day. Conveniently settle your financial obligations through checks which could also serve as proof of your

payment. Experience convenience by doing a host of banking transactions via the Bank's superior electronic banking

channels - BPI Express Online, BPI Express Phone and BPI Express Mobile.Transfer funds anytime, anywhere. Pay bills from the comfort of your home.Reorder checkbooks without going to the branch.Apply for a Stop Payment Order (SPO) even after banking hours.

Monitor your account the easy way:Via your monthly mailed Bank Statement, orView your account transactions details and even download your electronic statements from six months back in BPI Express Online.

Open an account anytime -- online.”

BPI DIRECT TIME DEPOSITS

Time deposits offer guaranteed and are covered by Philippine Deposit Insurance Corporation (PDIC). “It is therefore a risk-free outlet for your money and a great alternative to savings accounts when you are looking for higher yields and don’t need access to your funds for a while. BPI Direct offers opening a Time Deposit Account online, with no papers certificates to be issued so the hassle of going to a BPI branch can be cut off. And the confirmation for the respective placement fee will be sent via the customer’s registered personal e-mail. Time deposit placements are renewed automatically at maturity unless a written notice of an intention not to renew is received from the customer owning the account. (See Appendix B for Time Deposit Rates)

F IGURE 10 BPI D IRECT T IME DEPOSITS

The following benefits of opening a Direct Maxi-One Checking Account are itemized as follows:

Open a TD account for as low as PhP 1,000. Choose among the available terms: 35, 62, or 91 days. Roll-over your placement automatically at the current market rate.*

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Choose between two interest payment options: Credit interest to your deposit account at the end of the term, or Add the interest back to your principal Receive notification on your maturing TD via email; you can also view details of your TD in BPI Express

Online. Enjoy convenient access: proceeds of your TD placement will be automatically credited to your deposit

account. Open an account anytime -- online. Available only to clients who have individual BPI, BPI Family Savings

Bank or BPI Direct peso savings or checking accounts enrolled in BPI Express Online.

BPI DIRECT AUTO LOAN

BPI Direct offers loan with lower rates which would make it easier and affordable to repay by means of its Auto Loan.

“Here’s why:

Loan Purpose: You can use your BPI Direct Auto Loan to buy a brand new car, an Asian Utility Vehicle (AUV), a Light Commercial Vehicle (LCV) or selected brands of used passenger cars not more than 5 years old.

Loan Amount: Enjoy up to 80% of the suggested retail price for brand new vehicles and up to 70% of appraised value of second hand vehicles. Minimum loanable amount is Php 100,000.

Loan Term: You can choose from 12 months up to 60 months Interest Rate: BPI Direct offers very competitive rates, one of the lowest in the market. (For current auto-

loan rates, see Appendix E) Payment Convenience: You can enroll in our Automatic Debit Arrangement (ADA) so your monthly

amortization will be automatically debited from your deposit account. Timely Response: Once BPI Direct receives the complete information needed from you, you will receive

feedback within 24 hours for Metro Manila-based and 72 hours for applicants outside of Metro Manila.

Eligibility Criteria: If you have been employed or in business for at least 2 years with a minimum gross monthly income of Php 40,000, you are qualified to apply for a BPI Direct Auto Loan. “

Pre-processing requirement involves a filled-out application for that you can find online.

(For Online Auto Loan Online Calculator, see Appendix D. And to view the Truth in Lending Act, see Appendix C.)

BPI DIRECT HOUSING LOAN

BPI Direct offers a Housing Loan with lower rates so its customers can have their dream house easier and more affordable.

“Here’s why:

Loan Purpose: You can use your BPI Direct Housing Loan to:purchase a vacant lot

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purchase a house & lotconstruct a houserenovate your existing homerefinance loans with other financial institutions

Loan Amount: Enjoy up to 80% of appraised value or net selling price of an accredited project*. Minimum loanable amount is Php 400,000.*Accredited projects are those whose Developer has special arrangements with the Bank. The property need not to be appraised since the net selling price is considered by the Bank as the valuation of the property.

Loan Term: You can pay your housing loan up to 15 years depending on your collateral:Maximum of 15 years for house & lot and townhouseMaximum of 15 years for vacant lot and condominium of accredited projectsMaximum of 10 years for vacant lot and condominium units of non-accredited projects

Interest Rate: Choose from any of our low rates fixed for 1, 3, 5 years or up to the end of your loan term (For housing loan rates, see Appendix F)

Payment Convenience: You can enroll in our Automatic Debit Arrangement (ADA) so your monthly amortization will be automatically debited from your deposit account.

Timely Response: Once BPI Direct receives your online application form, you will receive feedback within 24 hours for Metro Manila-based and 72 hours for applicants outside of Metro Manila.

Eligibility Criteria: If you have been employed or in business for the last 2 years with a minimum gross monthly income of Php 50,000, you are qualified to apply for a BPI Direct Housing Loan.

Pre-Processing Requirements:1. Income Documents

Certificate of employment & compensationLatest ITR

2. Collateral DocumentsFor Accredited Projects:

Endorsement Letter or Computation Sheet or Contract to Sell from developer with contract price and description of unit indicated thereon

For Non-Accredited Projects: Clear Copy of Owner's Duplicate Copy of TCT/CCT Lot Plan/Vicinity Map Photocopies of tax declaration, tax receipts and tax clearance

Additional Documents for Construction Loan Building plan (complete set) Bill of materials/specification/cost estimates Scope of Work Building permit

Additional Documents for Loan Refinancing Statement of Account from Mortgage Lender Proof of Payment for the last 6 months

3. Non-refundable Appraisal Fee plus additional expenses for provincial properties only for non-accredited projects

(For Online Housing Loan Calculator, See Appendix G. To view the Truth in Lending Act, see Appendix C.)

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BPINOY SEAFARER’S HOME LOAN

“The BPInoy Seafarer's Home Loan Program was especially packaged by BPI Direct in partnership with its accredited Manning Agency clients for qualified seafarers and employees.” It assures low interest rates, easy-on-the-pocket monthly payment, speedy loan processing, and worry-free loan payment even during off-board months.

F IGURE 11 BPINOY SEAFARER 'S HOME LOAN AD

Here are the frequently asked questions (FAQ) regarding the Seafarer’s Loan, as answered by BPI Direct:

1. “What is the BPInoy Seafarer's Home Loan Program?

The BPInoy Seafarer's Home Loan Program was especially packaged by BPI Direct in partnership with its accredited Manning Agency clients for qualified seafarers and employees. Through this Program, you are assured of low interest rates, easy-on-the pocket loan amortization, speedy loan processing and worry-free loan payment even during off-board months. We even tied-up with accredited real estate developers to make available properties that are of the highest quality, yet very affordable.

2. What does accredited agency mean?

An accredited Manning Agency is one with an existing Allottee Payroll Remittance Agreement with BPI. This means that your allotments are coursed through BPI.

3. What is meant by off-board months?

These are the months in a year when you do not have an active contract with any shipping company.

4. How can BPI Direct help me pay my monthly amortization during these off-board months?

This is what is special about the BPInoy Seafarer's Home Loan Program. Your payment schedule was programmed such that the monthly payments you make during your contract period are sufficient to answer for the required monthly payments during your off-board months.

5. Who are qualified to apply for this type of loan?

Seafarers and employees of Manning Agencies with an existing Allottee Payroll Remittance Agreement with BPI are qualified to apply for this loan. You should not be over 60 years old and earning a minimum monthly salary of P40,000.00.

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6. What are the pre-processing documentary requirements?

For seafarers - Certificate of Employment from your Manning Agency and your POEA-authenticated contract.

For Manning Agency employees - Certificate of Employment indicating annual salary and position7. What are the loan terms available?

Loans are payable for a minimum of 5 years and a maximum of 15 years.

8. What is the interest rate?

We guarantee that your loan rates will be one of the lowest in the market.

9. What is the minimum loanable amount?

The minimum loanable amount is P400,000.00.

10. My spouse is unemployed, will I still qualify for the Program?

Yes, you can still qualify as long as your minimum monthly salary is P40,000.00.

11. Can a property located outside of Metro Manila still qualify for this loan program?

Yes, BPI Direct will process loans for properties outside of Metro Manila.

12. Who are your partner real estate developers? Can I purchase a property from other developers?

Currently, our partners are Avida Land and Ayala Land. Yes, you can purchase a property from other developers and still qualify to apply for the BPInoy Seafarer's Home Loan.

13. How can I apply for the BPInoy Seafarers Home Loan Program?

Simply log on to www.bpidirect.com and choose Learn More under Loans. You may also call BPI Express Phone 89-100.”

PROMOS

“Real Thrills on Maxi-Savers and Get Started” Promo

F IGURE 12 PROMO ON MAXI-SAVERS AD

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Promo Overview

“Open or add to your existing account now and enjoy exciting summer perks for every deposit of at least Php 150,000 for Get Started and Php 250,000 for Maxi-Saver.

Fly or drive to the destination of your choice or shop at your favorite store. The bigger your deposit, the more gift choices and the greater thrills you get!

Get the most out of your savings with rewards that you truly deserve.”

Promo Mechanics

1. Promo is open to new or existing BPI, BPI Family Savings Bank or BPI Direct Savings Bank individual accountholder.

2. Participating products are Maxi Saver and Get Started savings account.3. Promo will run from March 14 – May 13, 2011.4. Required minimum fresh fund deposit are:

Product AmountGet Started (Peso or Dollar) P150,000

Maxi-Saver(Individual) P250,000

5. Qualified accountholders will receive a gift certificate worth P500 that can be used for purchases at :- Primer Group stores- Petron Gas stations- Cebu Pacific- Bench Group

6. Promo availment is for every deposit made for a minimum of P150K for Get Started and P250,000 for Maxi Saver. The client will be entitled to Php500 worth of GC for every Php150K or Php250K for Get Started or Maxi-Saver respectively.

7. Required minimum fresh fund deposit will be put on hold for 3 months8. Fresh fund deposit should not be sourced from an existing BPI, BPI Family Savings Bank or BPI Direct

Savings Bank account.9. To claim the complimentary gift/s, client must fill-out the Claim Certificate and submit to the branch where

the deposit was made.10. Complimentary gift will be delivered to the branch where the deposit was made. Turn around time for the

processing of claims will be as follows:GMMA : 12 banking daysProvincial : 15 banking days

11. Gift certificates will be honored in participating merchant outlets only. Please see list of participating outlets at any BPI or BPI Family Savings Bank branch or at www.bpiexpressonline.com.

12. Gift certificates are valid for one year after date of issuance.13. Redemption period is up to July 15, 2011.14. All new account openings are subject to existing policies and procedures of the Bank.15. In case of dispute, the decision of the BPI Unibank, with concurrence of DTI will be final.

Promo will run from March 14 to May 13, 2011.Per DTI-NCR Permit No. 2134, Series of 2011

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“Checking Account Relaunch” Promo

F IGURE 13 CHECKING ACCOUNT RELAUNCH AD

Promo Overview:

“Get a free checkbook that comes with a checkbook wallet by simply opening a BPI Checking Account with a minimum deposit of Php 40,000 or Php 80,000.”

Promo Mechanics:

1. “Open a BPI/BPI Family Savings Bank/BPI Direct Savings Bank Checking account* from February 21 - April 29, 2011 with the following minimum initial deposit and get a gift:

Required Initial Deposit Complimentary GiftIndividual 40,000 Checkbook + Checkbook walletCorporate 80,000 Checkbook + Checkbook wallet

Promo is open to all Individual and Corporate clients of BPI/BPI Family Savings Bank and BPI Direct Savings Bank**.

2. Initial deposit should not be sourced from an existing BPI, BPI Family Savings Bank or BPI Direct Savings Bank account.

3. Promo availment is for every new account opened for a minimum of Php 40,000 for Individual and Php 80,000 for Corporate (or the required initial deposit whichever is higher).

4. Clients can automatically claim their gifts from the branch where they opened the account. 5. Gift items are not convertible to cash.6. In case of dispute, the decision of the BPI Unibank with concurrence of DTI, will be final.

*Participating Deposit Products: BET Checking, Business Checking, Maxi-One, Ka-Negosyo CA, BPI Direct Maxi-One

**BPI Family Savings Bank and BPI Direct Savings Bank are wholly-owned subsidiaries of Bank of the Philippine Islands

*Promo conditions apply. Per DTI-NCR Permit No. 1472, Series of 2011

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7.

APPENDIX A

Savings and Checking Rates

Type of Deposit Account

Required Initial Deposit

Required Minimum

Monthly ADB1

Required Daily

Balance2to Earn Interest

Interest Rate3

(Per Annum)

Peso Savings Account

BPInoy Savings None none(For as long as

there is a remittance

transaction at least once every

six months)

Php 500 1.375%

BPI Direct Express Teller Savings

Php 500 Php 500 Php 500 1.375%

BPI DirectSave-Up Automatic Savings + Insurance

None Php 1,000 Php 1,000 Less than Php 1,000 N.A.

1,000 - 399,999 1.000%

400,000 and above 2.000%

Maxi-Saver4Savings with ATM

Php 25,000 Php 25,000 Php 25,000 Less than Php 25,000 N.A.

25,000 - 299,999 1.375%

300,000 - 499,999 1.500%

500,000 - less than 1M 1.625%

1M and up 1.750%

With 1% p.a. BONUS if no withdrawal within a month

Peso Checking Account

BPI Direct Maxi-One Checking

Php 25,000 Php 25,000 Php 25,000 1.125%

1 ADB refers to Average Daily Balance, which is defined as the sum of the daily end-of-day balances in the account for a month divided by the number of days in that month. The formula for computing ADB is as follows:

ADB = (Day 1 ending balance + Day 2 ending balance …+ Day 30/31 ending balance)Number of days in the month (i.e. 30/31 days)

2 Daily Balance is equivalent to end-of-day balance.3 Interest earned shall be credited quarterly to your savings (except for Maxi-Saver where interest earned is credited monthly) and/or current account(s) provided that the account has not been closed prior to schedule of interest crediting.

Source:

http://www.bpidirect.com/page/view/savings-and-checking-rates

APPENDIX B

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Time Deposit Rates

BPI Direct Savings BankFor the Period: March 22 - 28, 2011

Peso TD 35 Days

63 Days

91 Days

1K to less than 10K --- --- 2.000

10K to less than 50K 1.750 1.875 2.125

50K to less than 100K 2.000 2.000 2.250

100K to less than 500K 2.125 2.125 2.375

500K to less than 1 MM 2.250 2.250 2.500

1 MM to less than 5 MM 2.375 2.375 2.625

5 MM and up 2.500 2.500 2.750

Source:

http://www.bpidirect.com/page/view/time-deposit-rates

APPENDIX C

Truth in Lending Act

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MICROFINANCE LAWS & ISSUANCES REPUBLIC ACT No. 3765 June 22, 1963

REQUIRING THE DISCLOSURE OF FINANCE CHARGES________________________________________

REPUBLIC ACT No. 3765AN ACT TO REQUIRE THE DISCLOSURE OF FINANCE CHARGES

IN CONNECTION WITH EXTENSIONS OF CREDIT.

Section 1.

This Act shall be known as the "Truth in Lending Act."

Section 2.

Declaration of Policy. It is hereby declared to be the policy of the State to protect its citizens from a lack of awareness of the true cost of credit to the user by assuring a full disclosure of such cost with a view of preventing the uninformed use of credit to the detriment of the national economy.

Section 3.

As used in this Act, the term

(1) "Board" means the Monetary Board of the Central Bank of the Philippines.

(2) "Credit" means any loan, mortgage, deed of trust, advance, or discount; any conditional sales contract; any contract to sell, or sale or contract of sale of property or services, either for present or future delivery, under which part or all of the price is payable subsequent to the making of such sale or contract; any rental-purchase contract; any contract or arrangement for the hire, bailment, or leasing of property; any option, demand, lien, pledge, or other claim against, or for the delivery of, property or money; any purchase, or other acquisition of, or any credit upon the security of, any obligation of claim arising out of any of the foregoing; and any transaction or series of transactions having a similar purpose or effect.

(3) "Finance charge" includes interest, fees, service charges, discounts, and such other charges incident to the extension of credit as the Board may be regulation prescribe.

(4) "Creditor" means any person engaged in the business of extending credit (including any person who as a regular business practice make loans or sells or rents property or services on a time, credit, or installment basis, either as principal or as agent) who requires as an incident to the extension of credit, the payment of a finance charge.

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(5) "Person" means any individual, corporation, partnership, association, or other organized group of persons, or the legal successor or representative of the foregoing, and includes the Philippine Government or any agency thereof, or any other government, or of any of its political subdivisions, or any agency of the foregoing.

Section 4.

Any creditor shall furnish to each person to whom credit is extended, prior to the consummation of the transaction, a clear statement in writing setting forth, to the extent applicable and in accordance with rules and regulations prescribed by the Board, the following information:

(1) the cash price or delivered price of the property or service to be acquired;

(2) the amounts, if any, to be credited as down payment and/or trade-in;

(3) the difference between the amounts set forth under clauses (1) and (2);

(4) the charges, individually itemized, which are paid or to be paid by such person in connection with the transaction but which are not incident to the extension of credit;

(5) the total amount to be financed;

(6) the finance charge expressed in terms of pesos and centavos; and

(7) the percentage that the finance bears to the total amount to be financed expressed as a simple annual rate on the outstanding unpaid balance of the obligation.

Section 5.

The Board shall prescribe such rules and regulations as may be necessary or proper in carrying out the provisions of this Act. Any rule or regulation prescribed hereunder may contain such classifications and differentiations as in the judgment of the Board are necessary or proper to effectuate the purposes of this Act or to prevent circumvention or evasion, or to facilitate the enforcement of this Act, or any rule or regulation issued thereunder.

Section 6.

(a) Any creditor who in connection with any credit transaction fails to disclose to any person any information in violation of this Act or any regulation issued thereunder shall be liable to such person in the amount of

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P100 or in an amount equal to twice the finance charged required by such creditor in connection with such transaction, whichever is the greater, except that such liability shall not exceed P2,000 on any credit transaction. Action to recover such penalty may be brought by such person within one year from the date of the occurrence of the violation, in any court of competent jurisdiction. In any action under this subsection in which any person is entitled to a recovery, the creditor shall be liable for reasonable attorney's fees and court costs as determined by the court.

(b) Except as specified in subsection (a) of this section, nothing contained in this Act or any regulation contained in this Act or any regulation thereunder shall affect the validity or enforceability of any contract or transactions.

(c) Any person who willfully violates any provision of this Act or any regulation issued thereunder shall be fined by not less than P1,00 or more than P5,000 or imprisonment for not less than 6 months, nor more than one year or both.

(d) No punishment or penalty provided by this Act shall apply to the Philippine Government or any agency or any political subdivision thereof.

(e) A final judgment hereafter rendered in any criminal proceeding under this Act to the effect that a defendant has willfully violated this Act shall be prima facie evidence against such defendant in an action or proceeding brought by any other party against such defendant under this Act as to all matters respecting which said judgment would be an estoppel as between the parties thereto.

Section 7.

This Act shall become effective upon approval.

Approved: June 22, 1963

Source:

http://www.bpidirect.com/page/view/truth-in-lending-act

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APPENDIX D

Calculator – Auto Loan

Source:

http://info.bpiexpressonline.com/bpiprod/prodserv.nsf/Loans/AutoLoanCalculator

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APPENDIX E

Auto Loan Rates

Brand New Cars

Term In Arrears In Advance

12 months 6.03% 5.15%

18 months 8.85% 7.93%

24 months 12.70% 11.70%

36 months 19.47% 18.36%

48 months 26.48% 25.28%

60 months 34.80% 33.47%

72 months 44.07% 42.58%

Second Hand Cars

Term In Arrears In Advance

12 months 10.40% 9.25%

18 months 14.35% 13.10%

24 months 21.05% 19.65%

36 months 30.15% 28.60%

48 months 39.65% 37.95%

60 months 47.10% 45.20%

In Arrears - Rate applied when you pay your loan amortization on due date.In Advance - Rate applied when you pay your loan amortization 30 days before due date.

Member: PDIC. Maximum Deposit Insurance for Each Depositor P500,00

Source:

http://www.bpidirect.com/page/view/auto-loan-rates

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APPENDIX F

Housing Loan Rates

HOUSING LOAN

Tenor Interest Rates

Yearly 8.75%2-3 years 9.75%4-5 years 10%6-10 years 11%11-15 years 11.25%16-20 years 11.50%

PROPERTY EQUITY LOAN

Tenor Interest Rates

Yearly 9.75%2-3 years 10.75%4-5 years 11%6-10 years n/a11-15 years n/a16-20 years n/a

The above are indicative rates only.For inquiries, please call the Housing Loan Department at:

845-6888, 754-6347, 754-6576 or 754-6815

Member: PDIC. Maximum Deposit Insurance for Each Depositor P500,00

Source:

http://www.bpidirect.com/page/view/housing-loan-rates

APPENDIX G

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Housing Loan Calculator

Source:

http://info.bpiexpressonline.com/bpiprod/prodserv.nsf/Loans/HousingLoanCalculator

APPENDIX H

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Service Fees

(Account Maintenance and Transaction Fees)

Particulars Amount of Fee / Charge

Monthly Service Charge for Falling Below the Required ADB

- Peso Deposit Accounts Php 150.00

Monthly Dormancy Charge

- Peso Deposit Accounts Php 200.00

Fee for Closing within One Month from Date of Opening

- Peso Deposit Accounts Php 500.00

ATM Transactions at other Expressnet member banks, Megalink and BancNet ATMs

- Balance Inquiry Php 1.50 / transaction

- Withdrawal Php 10.00 / transaction

Over-the-Counter (OTC) Withdrawals for ATM-based Accounts

(except when ATM is off-line or if the transaction exceeds the daily ATM limit) Php 100.00

Over-the-Counter (OTC) Funds Transfer via Debit/Credit Memo

- Peso Deposit Accounts Php 50.00 / transfer

- Dollar Deposit Accounts Php 50.00 / transfer

Stop Payment Order (SPO) Application (per check)

- Peso Checks Php 200.00

Overdraft (OD) Accrual Charge

- Fee 25.2% p.a. on OD amount

- Subject to a minimum of Php 26.25

AUXILIARY SERVICES

Particulars Amount of Fee / Charge

ATM Card Replacement Php 100.00

Bank Certification Php 100.00

Statement Request from Express Phone free of charge

Statement Request from Bank Statement Unit

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- First three pages Php 100.00

- For every succeeding page Php 10.00

Request for Microfilm Reproduction of Bank Documents

- First three pages Php 100.00

- For every succeeding page Php 31.00

Manager's Check Php 50.00

Peso Checkbook

- Personal Php 175.00

- Commercial Php 350.00

Peso Telegraphic Transfer

- Fee ¼ of 1% of amount

- Plus DST Php 0.30 for every Php 200.00

- Subject to a minimum of Php 100 plus Php 1.50 DST

Sale of Traveller's Checks

- Fee 0.5% of amount

- Subject to a minimum of Php 50.00

- Plus DST, if to be paid in Pesos Php 0.30 for every Php 200.00

Purchase of Traveler's Checks

- Fee per check Php 15.00

- DST per check Php 1.50

Foreign Bills Purchase (per check, if without line) Php 100.00

Outward Bills for Collection

- Fee ¼ of 1% of amount

- Plus postage fee Php 6.50

- Subject to a minimum of Php 100.00 plus Php 6.50 postage

PCHC CHARGES

Particulars Amount of Fee / Charge

Temporary Overdraft – Honored (Funded) ***

- Fixed Fee Php 1,000.00

- Additional Fee Php 200.00 for every Php 40,000.00 or a fraction thereof per day

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Temporary Overdraft – Returned (DAIF / DAUD) ****

- Fixed Fee Php 2,000.00

- Additional Fee Php 200.00 for every Php 40,000.00 or a fraction thereof per day

Stop Payment – Funded

- Fixed Fee Php 2,000.00

Stop Payment – Unfunded ****

- Fixed Fee Php 2,000.00

- Additional Fee Php 200.00 for every Php 40,000.00 or a fraction thereof per day

Technicalities *****

- Fixed Fee Php 2,000.00 per item

*** If a check for Php 35,000 was presented for clearing on a Friday and was funded on Monday, total charge would be Php 1,600 (Php 1,000 fixed fee + Php 200 x 3days)

**** If a check for Php 35,000 was presented for clearing on a Friday and was eventually returned, total charge would be Php 2,600 (Php 2,000 fixed fee + Php 200 x 3 days)

***** Checks that are post / stale dated, irregularly dated (i.e. February 30) &/or unsigned are not subject to the technicality fee.

Source:

http://www.bpidirect.com/page/view/account-maintenance-and-transaction-fees

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BIBLIOGRAPHY

Websites:

“BPI Direct Savings Bank Official Website”. http://www.bpidirect.com/.

“Bank of the Philippine Island Official Website”. http://www.bpiexpressonline.com.

Pages:

“Bank of the Philippine Islands”. http://en.wikipedia.org/wiki/Bank_of_the_Philippine_Islands. Retrieved March 27, 2011.

“BPI Direct Auto Loan”. http://www.bpidirect.com/page/view/bpi-direct-auto-loan. Retrieved March 27, 2011.

“BPI Direct Express Teller Savings”. http://www.bpidirect.com/page/view/bpi-direct-express-teller-savings. Retrieved March 27, 2011.

“BPI Direct Maxi-One Checking Account”. http://www.bpidirect.com/page/view/maxi-one-checking. Retrieved March 27, 2011.

“BPI Direct Maxi-Saver Savings”. http://www.bpidirect.com/page/view/maxi-saver. Retrieved March 27, 2011.

“BPI Direct Time Deposits”. http://www.bpidirect.com/page/view/bpi-direct-time-deposits. Retrieved March 27, 2011.

“BPInoy Savings”. http://www.bpidirect.com/page/view/bpinoy-savings. Retrieved March 27, 2011.

“BPInoy Seafarer's Home Loan”. http://www.mybpimag.com/index.php?option=com_content&view =article&id=126:loans-bpi-direct-savings-bpinoy-seafarers-home-loan&catid=40:article&Itemid =156. Retrieved March 27, 2011.

“BPI Pinoy Seafarer's Home Loan - Frequently Asked Questions”. http://www.mybpimag.com/index.php?option=com_content&view=article&id=128&Itemid=160. Retrieved March 21, 2011.

“Checking Account Relaunch”. http://www.mybpimag.com/index.php?option=com_content&view =article&id=613&Itemid=748. Retrieved March 28, 2011.

“Real Thrills on Maxi-Savers and Get Started”. http://www.mybpimag.com/index.phpoption=com_ content& view=article&id=700&Itemid=843. Retrieved March 28, 2011.

“Save-up Automatic Savings + Insurance”. http://www.bpidirect.com/page/view/save-up-automatic-savings-insurance. Retrieved March 27, 2011.

“Saving and Loans Association”. http://en.wikipedia.org/wiki/Savings_and_loan_association. Retrieved March 25, 2011.