BIZ BUZZ: Salmon dishes on juicy deposit rate
Digital-focused rural bank Salmon is making waves with its jaw-dropping promise of up to 8.88 percent interest on deposits—rates that have lured in nearly P953 million in savings as of the first half of 2025.
Salmon has made the juicy offer to reel in more savers, and it’s working—about 80 percent of deposits are enjoying that top rate.
The Bangko Sentral ng Pilipinas has raised an eyebrow over the sustainability of such high payouts. But Salmon insists it can keep swimming upstream, pointing to a P151.1-million net income in the first half (almost double year-on-year) and a loan portfolio now worth P1.3 billion.
Cofounder Raffy Montemayor said the endgame is to eventually settle on a healthy interest rate that both retains customers and keeps the business viable.
He said the bank is able to maintain comfortable margins to pay four times the cost of funds.
“If we lower the interest rate, does it (deposit growth) stay or drop significantly? It depends on how customers react,” he said, noting that while some savers chase the highest rates, “most Filipinos just want easy, convenient banking.”
“[I]f we can provide that (convenience), then we don’t need to provide such high rates to attract them,” he added. —ian Nicolas P. Cigaral
