Why should BDO charge an extra fee for deposits to provincial accounts?

After she typed in the account number where I will be depositing money to, the teller looked at me and said there is an added deposit fee of fifty pesos. That hasn’t happened to me before, so I asked her why. She explained it was because the account was from a provincial branch. It didn’t really explain much, but I said it’s fine and handed her another fifty pesos.

In this day and age of instant electronic money transfer, why does Banco de Oro add an extra charge for deposits to provincial branches? I could understand it would be reasonable several years back, when banks didn’t have any electronic networks to speak of and money has to be physically moved from one location to another, if they actually ever did that. But with an established inter-bank network, physical location should not matter anymore.

Either they should apply a fee for deposits regardless of which branch the receiving account is located, or they should not place deposit fees because of geographical location of the recipient. After all, the receiving branch is still located in the Philippines so there is no internation money transfer involved here.

Do other banks adapt this practice? Are there any justification for that charge? Sure, I’m annoyed with it, but if I could see a justifiable reason why that charge is placed there, I wouldn’t be complaining.

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One thought on “Why should BDO charge an extra fee for deposits to provincial accounts?

  1. Sadly it’s not just BDO – it’s a standard banking practice across most if a not all banks.

    Not that this justifies it. It just seems to remain a practice until now.

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