RTGS

Unknown to many, there is another way to "wire" funds between accounts from different banks. This system is called local telegraphic transfer or, more popularly, "Real Time Gross Settlement" (RTGS).

Unlike "Instapay" or "Peso Net" transactions, there's no limit to how much you can transfer through this method. In fact, certain companies use this system to transfer billions daily.

How can one use this system?

They simply have to go to their branch and request an RTGS transfer. The branch would ask them to fill up several documents, which the branch forwards to their Treasury Department at the head office for execution.

How much does it cost?

It depends on the amount, and it differs for each bank. But to provide an example, Security Bank will charge Php500 for a Php40 Mn RTGS (based on their website).

What are the drawbacks of RTGS?

How quickly this can be executed will depend on the Treasury Department's workload. Of course, the Treasury Department would prioritize their own transactions, and your request might get pushed behind the line. For this reason, it might be best to make the request as soon as the branch opens.

What's better, RTGS or Manager's Check?

Each method has its pros and cons. Sellers will likely prefer payments through Manager's Check simply because it's a proven and tested payment method. However, assuming there were no lines with the bank's Treasury Department, RTGS is a far superior way to pay for a property.