The Philippine Deposit Insurance Corporation (PDIC) has officially increased its maximum deposit insurance coverage (MDIC) from ₱500,000 to ₱1 million per depositor, per bank, effective March 15, 2025. The move is aimed at enhancing depositor confidence, ensuring financial stability, and protecting savings amid economic fluctuations.

The adjustment is the first increase in deposit insurance since 2009, when the coverage was raised from ₱250,000 to ₱500,000. With this latest change, the majority of depositors—covering nearly 97% of bank account holders—will now have their savings fully insured in the event of a bank closure.

Despite the expanded coverage, the PDIC confirmed that insurance premium rates for banks will remain unchanged, ensuring that financial institutions continue to operate smoothly without additional costs passed on to depositors.

How This Impacts Savers and Investors

The increase in deposit insurance coverage benefits both individual savers and businesses, providing greater financial security for those keeping funds in banks.

• Stronger Protection for Depositors – Those maintaining savings and emergency funds in banks can now store up to ₱1 million per bank with full PDIC insurance coverage.
• Confidence in the Banking System – The higher insurance limit reinforces trust in banks, encouraging Filipinos to continue keeping their funds in regulated financial institutions rather than informal savings methods.
• Diversification Opportunities – Depositors with higher balances may consider spreading their funds across multiple banks to maximize their insured amounts.

For businesses and investors, including those in real estate, a stronger banking system ensures stability in financial transactions, loan availability, and market confidence.

What Deposit Holders Should Do Next

✔ Check If Your Bank Is PDIC-Covered – Most Philippine banks are insured, but it’s best to verify with your financial institution.
✔ Consider Diversifying Savings – If your deposits exceed ₱1 million, spreading funds across multiple PDIC-covered banks ensures greater security.
✔ Stay Updated on Financial Policies – Regulations affecting savings, loans, and investments continue to evolve—keeping informed is key to financial planning.

The ₱1 million deposit insurance coverage is a significant step toward strengthening the Philippine financial sector, offering greater peace of mind for depositors and ensuring continued trust in the banking system.

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