If you have a substantial amount of money in the bank, the thought of what would happen to your money should the bank close down has probably crossed your mind once or twice.
We can’t blame you if you think about this scary scenario more than just once or twice that’s your hard-earned money right there. You just want assurance that your money is safe in the bank, right?
The good news: there’s a government-backed safety net called deposit insurance, and as of 2026, it covers more of your money than ever before. Here’s everything you need to know.
Contents
- Quick answer: How much does PDIC insure in 2026?
- What is deposit insurance?
- How does deposit insurance work?
- Which banks are covered under the Deposit Insurance Scheme?
- Which deposits are NOT covered by PDIC?
- How does PDIC cover joint accounts in 2026?
- How to file a deposit insurance claim
- Is your money safe in Philippine banks?
Quick answer: How much does PDIC insure in 2026?
As of 2026, the Philippine Deposit Insurance Corporation (PDIC) insures your bank deposits up to ₱1,000,000 per depositor, per bank. This ceiling was doubled from ₱500,000 effective 15 March 2025, the first increase since 2009.
At this new MDIC level, 98.8% of all Philippine deposit accounts are now fully insured, up from 97.6% in September 2024.
What is deposit insurance?
The Philippine Deposit Insurance Corporation (PDIC) provides deposit insurance coverage for the depositing public in the Philippines. Its role is to promote public confidence in banks and strengthen overall financial stability.
With PDIC in place, you’re guaranteed prompt payment of your insured deposits if anything untoward happens to your bank.
All valid deposits are covered by a Maximum Deposit Insurance Coverage (MDIC) of ₱1,000,000 per depositor, per bank — double the previous ₱500,000 limit that had been in effect since 2009.
To fund these payouts, PDIC maintains a Deposit Insurance Fund (DIF), built up from member banks’ assessments at an annual flat rate of 1/5 of 1% of each bank’s total deposit liabilities. This rate was retained (not increased) even after the 2025 MDIC hike.
If you’re still shopping for where to park your money, check our guide to the best fixed deposit accounts in the Philippines or see the 7 types of bank accounts every Filipino should open in 2026.
How does deposit insurance work?
PDIC functions as a co-regulator of banks, working closely with the Bangko Sentral ng Pilipinas (BSP). It issues regulations, conducts examinations, and ensures that banks comply with deposit-insurance rules.
PDIC also steps in as the receiver and liquidator of closed banks, taking over the administration of assets, records, and affairs on behalf of creditors and depositors.
Depositors don’t pay premiums directly — the insurance cost is shouldered entirely by member banks.
Which banks are covered under the Deposit Insurance Scheme?
Membership in PDIC is mandatory for all banks operating in the Philippines — universal banks, commercial banks, thrift banks, rural banks, cooperative banks, and digital banks authorized by the BSP. You can view the full list of member banks on the official PDIC website.
Thinking of opening a digital account? See our review of digital banks in the Philippines that let you open a savings account online.
Types of deposits PDIC insures (2026)
Under the updated PDIC charter, the ₱1-million MDIC covers the following deposit types:
- Savings and Special Savings deposits
- Demand / Checking accounts
- Negotiable Order of Withdrawal (NOW) accounts
- Time deposits
- Long-Term Negotiable Certificates of Deposit (LTNCDs)
- Islamic deposits as defined in BSP Circular No. 1139 (2022)
- Foreign currency deposits under Republic Act No. 6426
These may be held under different account ownership types (single, joint, “By,” “In Trust For (ITF),” or “For the Account of (FAO)”) and each category may be insured separately.
Which deposits are NOT covered by PDIC?
PDIC insurance only pays out when a bank closure is ordered by the Monetary Board. Losses from public disorder, strike, fire, theft, or war are not covered.
The following are also excluded:
- Investment products such as trust accounts, securities, bonds, mutual funds, UITFs, and similar instruments
- Fraudulent, fictitious, or unfunded deposit transactions or accounts
- Deposits that emanate from unsafe or unsound banking practices
- Deposits received outside the bank’s premises
- Transactions without the depositor’s required documents and valid ID
- Deposits or withdrawals made without duly accomplished forms
- Unusually high interest rates offered by a bank that lacks the capacity to pay
- Deposits determined to be proceeds of unlawful activities under Republic Act No. 9160 (Anti-Money Laundering Act)
- Deposits in non-banks such as cooperatives and non-stock savings and loan associations
How does PDIC cover joint accounts in 2026?
A joint account — whether “and,” “or,” or “and/or” — is insured separately from single accounts.
The ₱1,000,000 coverage is divided equally between the joint account holders, unless the deposit documents specify a different sharing arrangement. If there are three co-owners, each gets a ₱333,333 share, and so on.
Importantly, a single depositor’s aggregate share across multiple joint accounts at the same bank is also capped at ₱1,000,000.
Example: how joint account coverage works
Say Juan has a ₱1,200,000 single savings account at Bank A, plus a ₱1,500,000 joint account with Maria at the same bank:
Single account: Insured up to ₱1,000,000. The remaining ₱200,000 is uninsured.
Joint account: The ₱1,000,000 MDIC is split equally between Juan and Maria — ₱500,000 each. Since the balance (₱1.5M) exceeds the ₱1M cap, ₱500,000 is uninsured and split between them (₱250,000 each).
For complex account structures, use PDIC’s official MDIC guide and illustrative cases.
How to file a deposit insurance claim
If a member bank is ordered closed, depositors have 24 months from the date of bank takeover to file their insurance claims with PDIC. Any deposit amount exceeding the ₱1M ceiling becomes a claim against the closed bank’s remaining assets during liquidation.
Final thoughts: Is your money safe in Philippine banks?
With the MDIC now at ₱1 million and the Deposit Insurance Fund on track to reach an 8% target ratio by 2031, Filipino depositors enjoy stronger protection than ever. Still, if you hold more than ₱1 million in savings, consider spreading your funds across multiple PDIC-member banks to maximize coverage.
Looking to grow what’s already safely insured? Check out your savings account sucks — here are some that don’t (2026 edition) or our guide to the best local banks for Philippine expats (2026).
Any other questions about deposit insurance? Drop them in the comments below.