How Does Tonik Differ From Other Digital Banks?

At the time of writing, we already have 5 digital banks in the Philippines: CIMB, ING, Diskartech, Komo, and Tonik. In this article, I’ll tackle more about the newly-released Tonik bank. A bit of a disclaimer though. This Tonik Bank review isn’t sponsored. I just want to share my thoughts considering the current number of fully-digital banking options available here in the Philippines. 

So how does Tonik differ from all the other digital banks? What benefits does it offer? Is it worth trying? Let me share my thoughts about it. 

Tonik Bank Review

Tonik is proclaimed as the first-ever Neobank or fully digital bank in the Philippines. At first, the Neobank term got me confused. By definition, it’s just an all-digital bank, which is exactly the same as how CIMB, ING, Diskartech, and Komo operate. 

But later on, I understood that Tonik Digital Bank Inc. is a 100% digital bank itself. It is not affiliated with any physical banks. ING, for example, is affiliated with ING Global Bank. In the same way, CIMB is affiliated with the CIMB Bank. While the other two digital banks, Komo and Diskartech, are affiliated with local banks: Eastwest and RCBC respectively.

How credible is Tonik?

Tonik is the first ever digital bank that was given a digital-only banking license from the Bangko Sentral ng Pilipinas (BSP). Its president, Long Pineda, is a long time banker that headed RCBC in the past. 

As I’ve said earlier, Tonik is purely digital while ING and CIMB are not. ING and CIMB have physical branches in other countries, but their presence in the Philippines is only digital. When ING and CIMB were launched, the BSP hadn’t really established clear rules regarding digital banks. The moment the guidelines were released, Tonik was the first-ever Philippine digital bank that was granted the said license.

Tonik is covered by PDIC deposit insurance

Tonik is PDIC insured up to P500,000. This means that if Tonik fails to deliver its promises and will eventually shut its operations, the PDIC (Philippine Deposit Insurance Corporation) is obliged to pay you for your trapped money inside the Tonik bank, but only up to a maximum amount of P500,000 per depositor. 

---

Tonik Bank Features

I personally use ING and CIMB but what really hooked me into Tonik is its distinct features that can rarely be found in other Philippine digital banks.  

1. Tonik Account

Your Tonik account is your main account where you can execute external cash-ins and cash-outs. Within this account, you can also create up to 5 Stashes and 5 Time Deposit accounts (which I’ll expound later on).

As you park your fund in your Tonik account, you’ll enjoy 1% annual interest (less 20% withholding tax). 

2. Stashes

What really won me over is Tonik’s stash feature having 4% P.A. You can think of stashes as separate savings accounts intended for different purposes. If you’re into money envelopes or money jars, you’ll surely love this feature as well. Stashes allow you to segregate your money for specific goals like savings, investments, emergency funds, travel, or entertainment.


Back then, I used to wonder why banks don’t offer this money segregation feature without having to create another bank accounts. Security Bank and UnionBank actually offer similar stash features but with certain limitations. What I love about Tonik’s stash account, however, is its generous features: 

• Does not have a minimum balance requirement
• No dormancy fees
• No minimum deposits
• No account closure fees

Aside from personal financial goals (Solo Stash), you can also start a Group Stash! What’s even more exciting is you can create up to five stashes (combined Solo and Group). 

The group stash is like a joint savings account where you can invite your loved ones, friends, or even business partners to accumulate funds as a group! Not only will the group stash make you and others be accountable for saving for your goals, but it also offers a higher interest rate of 4.5% per annum compared to the solo stash with only 4% P.A.

Although the group stash feature sounds interesting, I highly suggest using this feature with discretion. While all Tonik account holders who accepted the group stash invitation can add money to the stash, only group stash creators are allowed to withdraw the funds. So if you ever receive a group stash invitation, make sure to carry it out with the people you trust.  

3. Time Deposit

Tonik’s time deposit feature is undeniably one of its best offers. You can earn up to 6% P.A. interest on time deposits. You can invest in Tonik’s time deposit account with a minimum of P5,000 for 6 months. 

You can calculate your projected interest with the time deposit calculator that can be found on the Tonik app or their website.

Take note, however, that the projected interest being shown is just the before taxes interest. It will still be subjected to a 20% withholding tax. So technically, a 6% annual interest will only give you a 4.8% annual net interest. 

Quite disappointed with the 4.8% net interest? Think again. Currently, most traditional banks that offer time deposits do not only provide a hassle application process but also give a very modest interest of around 0.25% – 1% P.A. before taxes.

Important things you should know about Tonik’s time deposit:

• You can pull out anytime. There are no penalties or charges for early redemption.
• You can still enjoy a 1% interest P.A. during early withdrawal.
• You will receive a time deposit certificate via email 24 hours after creating the TD.

4. Instant Virtual Card and Physical Debit Card

The moment you sign-up for Tonik, you’ll be greeted with an instant virtual card that is linked with Mastercard. This instant virtual card boasts an added layer of security for safer online purchases through its lock card, online payment security, and card limits features. You can use it for online transactions that require a Mastercard such as:

• Online shopping on e-commerce platforms
• Online bill payments
• Other online transactions that accept Mastercard

The physical debit card, on the other hand, is not yet available. But once it is, you can have it via in-app request. The Tonik Bank itself does not charge for ATM Balance Inquiry or ATM Withdrawal but some banks may charge additional access fees.

Take note, however, that a Mastercard fee of P250 will be charged from your account upon ATM withdrawal. But the same amount will be refunded directly to your account by Tonik.

5. Monthly Bank Statement sent through email

Days after I created my Tonik account, I was a bit shocked after receiving a bank statement from them. A bank statement is simply a list of transactions that are made in a particular period, usually monthly.

But I did not see that coming from Tonik since I haven’t made any transactions from that app yet. Still, I appreciate the gesture. If you have digi banks like CIMB and ING, you can download your bank e-statements through their apps but the thing I appreciated about Tonik is they’re able to deliver the bank statements straight to your inbox. It means more convenience and awareness for depositors like me.

6. Ease of Application

Out of all the digi bank applications I’ve encountered, I commend Tonik for its fast and seamless application process. It doesn’t even require you to submit a valid ID during the application process. And even if you skip that part, you’ll still enjoy the services Tonik offer in its app.


However, most of the features are limited and you could only deposit up to P50,000 unless you validate your account. You’ll be given until one year to comply with the valid ID requirement. Otherwise, your account will be closed.

Final Thoughts About Tonik

Honestly, what initially drew me into Tonik is its high-interest rate of 6% P.A. But just like what happened to CIMB and ING in which the interest rates have lowered over time, it could also just be Tonik’s way to attract depositors. Hopefully, Tonik is able to upkeep these recent interest rates for a longer period of time. I’m already thinking of pulling out some of my funds from ING and CIMB to fund Tonik’s time deposit and stash accounts.

But aside from the interest rates, Tonik’s stash features, facial recognition login, and romantic copywriting are the things that got me really hooked. Good job on that, Tonik!

As more and more Philippine digital banks show up, it just amuses me with how they compete with each other in terms of interest rates, bank features, and user experience. More digital banks mean more competition, and therefore, more benefits for us. We just have to be wise enough to choose the one that best complements our financial goals.

Just a little bit of caution though. I still highly suggest not to park all your funds in one digital bank. Most of these digital banks are constantly evolving their systems so expect app maintenance from time to time. The digital bank’s halted service is indeed a critical factor to consider especially during emergencies.

How about you? Have you tried Tonik already? If so, what feature do you like the most?