FILIPINOS can now save with greater confidence in banks as the Philippine Deposit Insurance Corp. (PDIC) has increased its maximum deposit insurance coverage (MDIC) to P1 million per depositor per bank.
The state-run insurer announced the update during its information drive “PDIC 101: Understanding the New Maximum Deposit Insurance Coverage” held Friday, July 11, 2025, at the Cebu Parklane International Hotel.
The new coverage took effect on March 15, replacing the previous P500,000 limit set in 2009.
PDIC said this move aims to promote public trust in the country’s banking system and protect more depositors in the event of a bank closure.
With the new MDIC, bank depositors are now insured up to P1 million if their bank fails or is closed by the Bangko Sentral ng Pilipinas (BSP). This means that a depositor with P600,000 in an insured bank will be fully covered; while a depositor with P1.5 million will be covered for the first P1 million. The rest may be recovered through the bank’s liquidation process.
PDIC said claims can be settled within two weeks to one month — much faster than the years it may take through liquidation.
The P1 million coverage applies to the following: savings and special savings accounts, checking or demand accounts, time deposits, long-term negotiable certificates of deposit, foreign currency deposits and Islamic deposits under BSP rules.
Meanwhile, the following are not covered:
Investment products, bonds and securities, trust accounts, deposits in non-bank entities like cooperatives.
Depositors are not required to pay for insurance. Coverage is automatically provided by PDIC-member banks, which pay assessment fees.
PDIC said the adjustment reflects inflation and aligns with similar economies. The new limit is roughly four times the country’s gross domestic product per capita and is designed to be more responsive to current economic conditions.
Under Republic Act 3591, PDIC is authorized to review and adjust the MDIC every three years.
All BSP-licensed banks including universal, commercial, thrift, rural, cooperative and digital banks are members of PDIC.
“The increase in MDIC is part of our continuing efforts to ensure depositors are protected and confident that their savings are safe,” said PDIC vice president for corporate affairs Jose Villaret Jr., who led the presentation during the forum.
Banks must display the PDIC insurance statement in their branches and on their digital platforms. PDIC reminds the public to look for these signs to verify if their bank is insured. /Allyssa Doncillo, Ericka May Charcos, Ariane Masibay, HNU Interns