Here’s what PDIC's higher deposit insurance coverage means for depositors

Bank clients will enjoy higher insurance coverage on deposits, as the Philippine Deposit Insurance Corporation (PDIC) increases the MDIC to ₱1 million per depositor per bank.  

Here are some things worth noting about the higher deposit insurance coverage. 

A higher MDIC gives clients greater peace of mind knowing that the coverage is doubled from ₱500,000 to ₱1 million. With Bangko Sentral ng Pilipinas (BSP)-licensed banks like BPI covered by the new ruling, customers are assured that their savings are secure.

The MDIC is only applicable on the following bank products: 

By Deposit Type 

• Regular and special savings accounts 
• Checking accounts 
• Time Deposits 
• Negotiable Order of Withdrawal (NOW) 

By Currency 

• Philippine Peso 
• US Dollar 
• Other foreign currencies considered part of the BSP’s foreign reserves 

Take note, though, that investment products like bonds, stocks, mutual funds, and unit investment trust funds (UITFs) are not covered by deposit insurance. 

There’s no need to pay even a single additional centavo for the increased deposit coverage. Saving in your bank account alone qualifies you for the MDIC, whatever amount it may be.

To know if your bank is covered by deposit insurance, you may check the PDIC website. As a guide, all BSP-licensed banks are required to become PDIC member-banks.

Sources:

Q&A on the New Maximum Deposit Insurance Coverage (MDIC), Philippine Deposit Insurance Corporation (PDIC),  https://www.pdic.gov.ph/files/ccd/Q&A%20on%20the%20New%20MDIC.pdf

Understanding Deposit Insurance, PDIC, https://www.pdic.gov.ph/files/fsf/Understanding%20Deposit%20Insurance.pdf

Ask PDIC: What bank products are covered and NOT covered by PDIC deposit insurance? PDIC, 5 July 2021, https://www.facebook.com/photo.php?fbid=2945493155663598