What the 20% tax does to your interest

Every rate on this site, and every rate a bank advertises, is gross: before tax. Interest on peso deposits is subject to a 20% final withholding tax, and the bank takes it out before the interest reaches you. You don’t file anything for it; you just receive 80%.

The quick way to work out what you keep

Multiply the advertised rate by 0.8.

Advertised rate	What you actually earn
3.00%	2.40%
3.50%	2.80%
4.00%	3.20%
5.00%	4.00%
5.50%	4.40%

A worked example

₱100,000 in a savings account paying 4% a year:

• Gross interest for the year: ₱100,000 × 4% = ₱4,000
• Tax withheld: ₱4,000 × 20% = ₱800
• What lands in your account: ₱3,200 a year, or about ₱266.67 a month

GoTyme shows the same thing on a daily scale in its own help pages: ₱10,000 at 3.0% earns about ₱0.82 a day before tax and about ₱0.66 after.

Why it matters when you compare

The tax hits every bank the same way, so it doesn’t change which account pays more. It changes how much more. A 1-point gap in advertised rates is a 0.8-point gap in your pocket: on ₱500,000, the difference between 3.5% and 4.5% is ₱5,000 a year before tax and ₱4,000 after.

Our calculator shows every result after tax, so you can see the real pesos.