PDIC doubles deposit insurance coverage to P1-M

The Philippine Deposit Insurance Corp. (PDIC) has announced an increase in the maximum deposit insurance coverage (MDIC) for bank deposits, doubling it from P500,000 to P1 million per depositor per bank.

According to Memorandum 2025-01 released on Friday, the higher MDIC will take effect on March 15.

“The increase in the MDIC was approved by the PDIC Board of Directors to provide enhanced protection and more confidence for the depositing public,” the PDIC stated.

Deposit insurance serves as a financial safety net to protect depositors and maintain stability in the banking system. It is provided by the government at no cost to depositors.

Under Republic Act 3591, as amended, the PDIC Board of Directors has the authority to adjust the MDIC in response to inflation or other economic indicators. The law also mandates a review of the MDIC every three years.

With the new P1 million coverage, 136 million deposit accounts—or 98.6 percent of the total 138 million accounts—will be fully insured. This is an improvement from the previous 97.6 percent under the P500,000 MDIC. The total value of insured deposits will also increase to P4.8 trillion, representing 24.5 percent of total deposits amounting to P19.5 trillion, up from 18.3 percent previously.

Despite the increased coverage, the PDIC assured that the Deposit Insurance Fund (DIF) remains sufficient to handle potential risks. The DIF-to-insured deposits ratio is projected to reach 5.3 percent in 2025 and gradually rise to the target of 8 percent by 2031, following global best practices.

Rizal Commercial Banking Corp. chief economist Michael Ricafort said the move will strengthen public trust in the banking sector.

“This would also respond to higher prices to be more attuned to the realities in terms of sufficiency of deposit insurance coverage,” he said.

Ricafort added that the adjustment will further reinforce confidence and stability in the local banking system.