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The deposit insurance is a government-mandated safety net that protects depositors in case of bank failure.
Angie Reyes via Pexels
MANILA, Philippines — The Philippine Deposit Insurance Corporation (PDIC) announced on Friday that it will double the maximum deposit insurance coverage from P500,000 to P1 million, effective March 15, 2025.
The deposit insurance is a government-mandated safety net that protects depositors in case of bank failure.
“Effective 15 March 2025, the maximum deposit insurance coverage provided by the PDIC will be increased from P500,000 to P1 million per depositor, per bank," the PDIC said on its website.
"The increase in the [coverage] was approved by the PDIC Board of Directors to provide enhanced protection and more confidence for the depositing public," it added.
Depositors do not pay for this insurance, which serves as a financial safety net to protect depositors, the agency added.
This adjustment aligns with Republic Act 3591, also known as the PDIC Charter, which allows for adjustments to the maximum deposit insurance coverage based on inflation or other economic factors.
The PDIC's decision comes after a recent order from the Department of Finance for the agency, along with PhilHealth, to return excess funds to the national treasury. Specifically, the PDIC was instructed to remit P110 billion in excess funds.
This transfer of funds from both PDIC and PhilHealth been widely criticized, with the Supreme Court ordering a freeze on the remaining transfers.
