PDIC insurance protects bank deposits in the Philippines up to ₱1 million per depositor per bank, providing a financial safety net and promoting confidence in the banking system.
Overview of PDIC
The Philippine Deposit Insurance Corporation (PDIC) is a government-owned and controlled corporation established in 1963 under Republic Act No. 3591. Its primary purpose is to insure deposits in Philippine banks, protect depositors, and promote financial stability. PDIC also acts as the statutory receiver and liquidator of banks closed by the Monetary Board of the Bangko Sentral ng Pilipinas (BSP), managing and disposing of bank assets to settle claims.
Coverage and Limits
Maximum Deposit Insurance Coverage (MDIC): ₱1,000,000 per depositor per bank, effective March 15, 2025.
Coverage applies to: Savings accounts, checking accounts, time deposits, and negotiable order of withdrawal (NOW) accounts in Philippine pesos and foreign currencies.
Joint accounts: Each co-depositor is insured separately up to the MDIC limit, potentially allowing coverage above ₱1 million if multiple accounts exist.
Exclusions: Investment products like bonds, stocks, mutual funds, and unit investment trust funds (UITFs) are not insured. Deposits from bank insiders or proceeds of illegal activities are also excluded.
