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Thu. Apr 15th, 2021

Are you, as an expat, considering opening a bank account in the Philippines? If so, you’re probably wondering the following: “Are Bank Accounts in the Philippines Insured?” Good question.

Here’s what the Philippine Deposit Insurance Corporation, PDIC, has to say:

Effective June 1, 2009, the maximum deposit insurance coverage is P500,000 per depositor. All deposit accounts by a depositor in a closed bank maintained in the same right and capacity shall be added together.


All the four deposit accounts (i.e., Account Nos. 1 to 4) are owned by the same person, Juan Dela Cruz, and maintained in the same Bank (Head Office and all its Branches), thus, the balance of the accounts will be added together, as they are maintained in the same right and capacity, regardless of account type and banking unit/branch.

Total amount of insured deposit cannot exceed P 500,000.00, the Maximum Deposit Insurance Coverage (MDIC).

Of the total balance of P 900,000.00, the amount insured is P 500,000.00 and the uninsured amount is P 400,000.00.

Deposits in Several Banks

If I have deposits in several different insured banks, will my deposits be added together for insurance purposes?

No. Deposits in different banking institutions are insured separately. However, if a bank has one or more branches, the main office and all branch offices are considered as one bank.

Thus, if you have deposits at the main office and at one or more branch offices of the same bank, the deposits are added together when determining deposit insurance coverage, the total of which shall not exceed P500,000.

OK, well, that sounds like you might not want to put all your eggs in one basket, huh?

Graphic source: mamumediaall.com


Are all banks members of PDIC?

Membership of banks to PDIC is mandatory; hence, all operating banks are members of PDIC.

Take note:

Under R.A. No. 9576, the PDIC may propose to adjust the MDIC, subject to the approval of the President of the Philippines, in case of a condition that threatens the monetary and financial stability of the banking system that may have systemic consequences.

By The Kano

POST AUTHOR: "THE KANO." Dave DeWall, "The Kano", is the Publisher & Editor-in-Chief of "Philippines Plus" in publication since August 2009. He is also the CEO of Lizard Poop Productions and author of the best-selling guide book "The Philippines Expat Advisor." Dave moved to the Philippines in July 2009 from Central Illinois with his lovely wife of over 21 years, "The Sainted Patient Wife." The couple reside in a rural province in Western Visayas, Guimaras. The small island province is said to have the sweetest mangoes in the world. They do not have any children but are the proud owners of eight active canines, including a Belgian Malinois called "Killer" "Killer" has bitten five people over the years along with one goat and a carabao. "Killer" doesn't like strangers. Or goats. Or carabaos.

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