PDIC doubles max deposit insurance to P1M effective March 15

The Philippine Deposit Insurance Corporation (PDIC) announced on Friday that it will double the maximum deposit insurance coverage from P500,000 to P1 million per depositor per bank, effective March 15.

This expansion aims to enhance protection for depositors' funds against inflation and potential financial instability, with PDIC emphasizing its role as a government-mandated safety net in case of bank failure.

Under its amended charter which took effect in 2022, PDIC now has the authority to adjust the maximum deposit insurance coverage based on economic indicators without requiring new legislation.

With the increase, 98.6 percent of deposit accounts—covering a total of ₱4.8 trillion in deposits—will be fully insured, up from 97.6 percent under the previous P500,000 limit.

Banks are required to prominently display the new Official PDIC Digital Decal on their websites and other digital channels as part of their mandate to safeguard depositors' funds and ensure banking system stability.

The decision comes amid criticism over recent orders from the Department of Finance for PDIC to remit excess funds to the national treasury, with the Supreme Court ordering a freeze on these transfers.