Starting March 15, 2025, the Philippine Deposit Insurance Corporation (PDIC) will officially increase the Minimum Deposit Insurance Coverage (MDIC) from ₱500,000 to ₱1 million per depositor per bank. This move marks a significant step in strengthening depositor protection and boosting public trust in the country’s banking system.
If you’re a depositor, this change matters. Here’s a breakdown of what the increase means, who it affects, and how it could protect your money.
What Is Deposit Insurance?
Deposit insurance is a government safety net that protects your money in case a bank fails. In the Philippines, this service is handled by the PDIC, which guarantees your deposits up to a certain amount. Until now, that limit was ₱500,000.
With the new policy taking effect on March 15, 2025, that coverage doubles to ₱1 million—but only for banks ordered closed from that date onward.
Key Highlights of the New PDIC Deposit Insurance Policy
- New Coverage Limit: ₱1 million per depositor, per bank.
- Effective Date: March 15, 2025.
- Applies To: Banks ordered closed on or after the effective date.
- Retroactive? No. The new limit does not apply to banks closed before March 15, 2025.
- What’s Covered: Savings, time, demand, and foreign currency deposits in banks licensed by the Bangko Sentral ng Pilipinas (BSP).
- What’s Not Covered: Deposits in cooperatives and non-stock savings and loan associations are excluded from this increase.
“It’s Per Depositor, Not Per Account”
PDIC President and CEO Roberto B. Tan emphasized that the new limit covers total deposits per depositor—not per account. That means if you hold multiple accounts in a single bank, all of them will be combined, and the ₱1 million limit applies to the aggregate balance.
“Beginning 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,” Tan explained during a press briefing.
Why the Increase Now?
The last update to the insurance limit was made in 2009, when it was raised to ₱500,000. But over the years, inflation and changes in the economic environment have reduced the real value of that protection. The increase to ₱1 million aims to restore its purchasing power, ensuring that depositors today receive protection equivalent to what they had 15 years ago.
How Many Will Benefit?
With this adjustment:
- Around 147 million deposit accounts will now be fully covered.
- An estimated 1.5 million more depositors will benefit from the higher coverage.
This means more peace of mind for millions of Filipinos who trust the banking system with their hard-earned savings.
A More Responsive Deposit Insurance System
In addition to the increase, the PDIC Board of Directors now has the authority to review and adjust the MDIC every three years, depending on the country’s economic performance and indicators. This ensures that the coverage remains relevant and responsive to the financial landscape.
What This Means for You
If you’re a depositor at a BSP-supervised bank, this is a big win. You now have double the coverage to protect your money should the unexpected happen. For everyday savers, retirees, small business owners, and even OFWs with foreign currency deposits, this change is a significant boost in financial security.
It’s also a confidence booster for the banking industry as a whole. The PDIC’s move sends a clear message: your deposits are safer than ever.
Learn More
For the full official announcement, you can read the PDIC press release here:
👉 PDIC Press Release: MDIC Now ₱1 Million Effective March 15, 2025
Final Thoughts
This move by the PDIC reflects a clear effort to protect depositors, keep pace with economic realities, and bolster trust in the Philippine financial system. Whether you’re a long-time saver or just starting to build your emergency fund, knowing that your money is covered up to ₱1 million gives you one less thing to worry about.
Stay updated, stay insured—and keep your savings smart.
