About bank
Rural Bank of Angeles is the 6th rural bank in the Philippines. Headquartered in Pampanga, the bank offers personalized banking services to its customers nationwide. It is owned by Asia United Bank (AUB) and works to provide universal services to its account holders.
Rural Bank of Angeles (RBA) was founded in 1952 and started its operation in February 1953. The first branch was in Pampanga, but it has opened other branches countrywide. Being a rural bank, it offered products and services to small and medium businesses.
Asia United Bank Acquired RBA in 2009, strengthening its financial ability to offer innovative services to its customers. With over 30 branches countrywide, the bank aims to provide premium banking products to rural and urban citizens while embracing technology for better services.
Features
RBA offers deposits and loans to its customers. You can open a savings or current account for your personal or business needs. The savings accounts attract a 0.25% annual interest credited quarterly. You have to pay a 20% withholding tax for the amount deposited. Furthermore, a regular savings account requires a ₱1000 maintaining balance.
Agricultural, microfinance, teachers’, and commercial loans are available to account holders for personal and business financing. If you meet the eligibility criteria for different loans and have a good credit standing, you can access these loans and pay in 12-60 months. The highest microfinance loan is ₱300,000, while others can go up to ₱2000,000 at a 7.5% -27% rate per annum for different loans.
Pros and cons
The Rural Bank of Angeles has helped individuals and small businesses solve financial problems. However, the bank has its advantages and disadvantages, which you must analyze before investing. These include:
Pros
You are insured by up to ₱500 000 per depositor.
You access a low initial account opening balance of ₱100 for basic deposit and ₱1000 for regular deposit.
You access loans without collateral to help small businesses and individuals meet their financial needs.
You are not charged any hidden fees on loans.
The bank provides access to a wide range of products and services to help low- and medium-income earners attain financial stability.
Cons
The bank has many requirements in the eligibility criteria for loans.
The interest rates for some loans are high.
There is a high nominal interest on the teachers' salary loans.
Products and services
The bank offers the following products and services:
Deposits
Savings account. This is an interest-bearing savings account where you are issued with a passbook to monitor your transactions. You can only withdraw funds over the counter. The minimum initial deposit and its maintaining balance is ₱1000. You earn a 0.25% interest on your deposit amount, credited quarterly and annually. The amount in your account attracts 20% withholding tax. You enjoy up to ₱500,000 insurance coverage.
Current account. Another interest-bearing account allows you to deposit and withdraw funds over the counter. The minimum initial deposit is ₱100 or less with no maintaining balance requirement. Your deposits will earn a 0.25% credited to your account every three months. You also qualify for insurance cover up to ₱500,000
Time deposit. If you want your money to earn high interest, you can deposit it in a regular time deposit account for a fixed period starting from 30- 360 days. The minimum initial placement is ₱1000, and the interest rate is 0.75%. If you withdraw your funds before maturity, you suffer a ₱1000 penalty. You are entitled to insurance cover up to ₱500,000.
Loans
Agricultural loans. Farmers practicing crop farming and animal production can apply for this loan to fund all farm activities, including field practices, seed and fertilizer purchases, farm machinery, and animals. A 24% diminishing interest rate and 3-4% apply for this product. You can repay your loan monthly, semi-monthly, or annually; collateral is optional.
Teachers' salary loans. Regular and permanent teachers six months or more into the field are eligible for a salary loan from ₱10,000 - ₱2000,000. The loan repayment period is 1-5 years, with a 7.5% annual interest spread across the repayment period. A 4.1% nominal interest rate applies for this loan.
Commercial loan. Account holders can access personal and development project funding if they meet the eligibility criteria.
Microfinance loan. Small enterprise owners can access working capital and funding for business premises from RBA. To qualify for a commercial loan of up to ₱300,000. Your business must be 2+ years old. The bank charges a 48-54% interest rate for this loan on reducing balance and a further 1-3% service charge.
Services
Checking account. Business owners can open a checking account with RBA to help them pay their staff, settle utility bills and receive payments.
