QUEZON CITY, (PIA) — The Philippine Deposit Insurance Corporation (PDIC) announced on Friday that the Minimum Deposit Insurance Coverage (MDIC) will increase to P1 million per depositor, effective Saturday, March 15, 2025.
PDIC President and CEO Roberto B. Tan clarified that this new coverage applies only to deposits in banks that are ordered closed starting on the effective date; it will not be applied retroactively.
“Beginning tomorrow, March 15, the coverage will now be 1 million [pesos] per depositor per bank. I just want to clarify, it’s per depositor, not per account. If you have several accounts in the same bank, we will consolidate them and insure up to 1 million,” Tan said during a press conference organized by the Philippine Information Agency (PIA).
The CEO emphasized that the coverage extends solely to deposits in banks licensed by the Bangko Sentral ng Pilipinas (BSP), which includes savings, time, demand, and foreign currency deposits.
However, cooperatives and non-stock savings and loan associations will not be covered under this increase.
The decision to raise the deposit insurance limit aims to restore the value of the previous coverage of P500,000, which was set in 2009, taking into account inflation and current economic conditions.
With this adjustment, an estimated 147 million accounts will be fully insured, allowing an additional 1.5 million depositors to benefit from the increased protection.
“The PDIC Board of Directors now has the authority to review and adjust the MDIC every three years based on economic indicators,” Tan added, indicating a commitment to adapting to changing financial landscapes.
The increase in deposit insurance coverage is expected to bolster public confidence in the Philippine banking system, providing depositors with enhanced security for their savings. (JCO/PIA-NCR)
