Where Filipinos working remotely should store savings: USD or PHP?

There is usually a dilemma among Filipino remote workers: whether to save in USD or PHP and where to save. This concern is understandable, as many of them earn in USD but spend every day in PHP. Converting every now and then can erode your earnings, and it just makes sense to convert all your earnings into PHP. Before you jump into a decision, let’s explore the pros and cons of saving in either USD or PHP, and how you can make an informed choice about where to store your savings.

Also read: Remote jobs abroad for Filipinos: a simple starter guide

Should you store your savings in USD?

The US dollar is a stable currency widely used in global transactions. For Filipinos earning in dollars, saving in USD reduces the risk of losing money to PHP’s volatility and avoids repeated conversion costs. You are at peace during periods of local economic uncertainty because the USD's purchasing power tends to hold up better over time during financial crises.

Saving in USD is also a great idea if you travel abroad frequently, pay for international education, make international payments, or invest in global assets. Keeping your earnings in USD gives you control over when to convert, instead of being forced to convert at potentially unfavourable rates. You can wait until rates are favourable before converting to PHP.

However, saving in USD isn’t all about the positives either.  If most of your expenses are in PHP and you hold all savings in USD, you may be exposed to short-term exchange rate swings when you need PHP. If the peso improves, converting USD could result in a loss.

There is also a gap it creates in your local cash flow. You think you have enough pesos to last a period, only to find yourself needing urgent access to more money. You can only hope to convert your USD savings just in time to meet that need.

Saving in USD also yields very little interest. USD accounts in Philippine banks offer much lower rates: 0.1-1.1% for savings, and 1-3% for time deposits on longer terms.

In summary, the USD is best used as a store of value rather than for daily spending.

Also read: Why freelancers in the Philippines struggle with foreign currency access

Should you store your savings in PHP?

Saving in PHP is well-suited to everyday life for most Filipinos because they pay for local expenses such as groceries, rent, and utilities in pesos. This removes the need for frequent conversions and reduces conversion fees that can gradually add up and eat into your earnings. With the PHP's current stability and low inflation (1.5% in November 2025), your savings maintain purchasing power for domestic needs without the hassle of monitoring exchange rates.

A major advantage of saving PHP is the higher interest rates, especially through digital banks. Some offer 3-6% on savings or time deposits, which is more than what you’ll get with USD. Saving in PHP provides better real returns, even after adjusting for the Philippines' current inflation rate.

On the downside, the PHP is more volatile than the USD. Its value is influenced by domestic economic factors such as trade deficits, natural disasters, or policy changes. If the peso weakens as projected, your savings could lose international purchasing power, impacting overseas travel or imports.

In essence, PHP is ideal for short-term liquidity and local focus but exposes you to currency risks in a globalised economy.

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Where should Filipinos working remotely store their savings: USD or PHP?

If we are to piece all of these together, here is a direct comparison of the pros and cons of saving in either USD or PHP

• Stability: Storing funds in USD offers high stability and shields savings from local currency depreciation, whereas the PHP is more vulnerable to exchange rate fluctuations and local economic factors.
• Accessibility: Savings in USD are easily accessible for international travel or online purchases in foreign currencies. Conversely, using a PHP account for international expenses requires currency conversion, which may involve additional fees and less favourable rates.
• Transaction fees: Using multi-currency accounts or virtual wallets to receive foreign payments often results in lower conversion fees when holding funds in USD. On the other hand, receiving foreign currency into a traditional PHP account results in higher conversion fees and unfair exchange rates.
• Interest rates: While PHP savings accounts may offer higher interest rates, these potential gains could be offset by inflation or depreciation. Interest rates on USD accounts at local banks are typically lower.
• Inflation hedge: The USD generally provides a better hedge against local inflation compared to the PHP. Inflation in the Philippines can erode the purchasing power of the pesos you saved faster than the dollars.

Also read: Safe ways Filipinos keep their money when the Peso feels uncertain

So, USD or PHP, which should you save in?

For most Filipino remote workers, the real answer is not choosing one over the other, but using both intentionally. Using a balanced approach, you can hold part of your savings in USD and part in PHP to minimise risk, regardless of how the exchange rate moves.

Even with the right currency mix, where you store your money can determine whether you truly protect your income or slowly lose money to fees, forced conversions and poor exchange rates.

This is where modern payment solutions like Grey come in. Grey allows you to open a multi-currency account to receive USD, hold it, and convert to PHP whenever you need to. This gives you total control over timing your conversion and the transparency to monitor the exchange rates in real time. Instead of choosing between USD and PHP, you can manage both in one place, on your own terms.

Sign up on Grey today or download the app to manage your finances efficiently.

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