MANILA, Philippines – The Philippine Deposit Insurance Corporation (PDIC) announced that it will increase the maximum deposit insurance coverage (MDIC) from P500,000 to P1 million per depositor, per bank.

The new directive is effective March 15, 2025.

The PDIC Board of Directors approved the increase to strengthen depositor protection and boost public confidence in the banking system.

“The increase in the MDIC provides enhanced protection and more confidence for the depositing public,” the PDIC stated.

Deposit insurance serves as a financial safety net to protect depositors in the event of bank closures and to maintain financial stability. 

At the same time, it said that depositors do not pay for deposit insurance, as it is a government-backed policy.

Under Republic Act No. 3591, or the PDIC Charter, the board is authorized to adjust the MDIC based on inflation and other economic factors. The law mandates a review of the MDIC every three years to ensure its relevance and adequacy.