Philippine Deposit Insurance Corporation Official Website

ILLUSTRATIVE CASES ON SINGLE ACCOUNTS

SINGLE ACCOUNTS / SOLE PROPRIETORSHIP /
“BY” ACCOUNTS / “ITF” ACCOUNTS

Charter Provision: Sec. 5 (k):

“x x x In determining such amount due to any depositor, there shall be added together all deposits in the bank maintained in the same right and capacity for his or her benefit either in his or her own name or in the name of others. x x x”

Illustrative Cases:

Case 1: Single Account/s

Computation of Insured and Uninsured Amount:

Explanations:

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 P1,000,000.00, the Maximum Deposit Insurance Coverage (MDIC).
Of the total balance of P1,400,000.00, the amount insured is P1,000,000.00 and the uninsured amount is P400,000.00.

Case 2: Single Account/s and Sole Proprietorship

Computation of Insured and Uninsured Amount:

Explanations:

The first three deposit accounts (i.e., Account Nos. 1 to 3) are owned by the same person, Juan Dela Cruz, hence, the balance of the accounts will be added together.
A sole proprietor is wholly owned by the owner, hence, the Dela Cruz Flower Shop (Account No. 4) owned by Juan Dela Cruz will be added to his first three accounts as all of them (Account Nos. 1 to 4) are maintained in the same right and capacity. The total amount insured cannot exceed P1,000,000.00.
Of the total balance of P1,400,000.00, the amount insured is P1,000,000.00 and the uninsured amount is P400,000.00.

Case 3: Single, “ITF” and “By” Accounts

Computation of Insured and Uninsured Amount:

Explanations:

Juan Dela Cruz is the principal owner of three accounts (i.e., Account Nos. 1, 3 & 4). As these are maintained in the same right and capacity, these accounts will be consolidated.

The single account (Account No. 1) is under his name alone and the other two are “By” accounts (Account Nos. 3 and 4) which are owned by him as the PRINCIPAL DEPOSITOR or BENEFICIAL OWNER while Maria Dela Cruz and Pedro Dela Cruz ACTED AS HIS AGENTS only. Thus, the total insured amount payable to Juan Dela Cruz is P1,000,000.00 and the uninsured amount is P200,000.00.
Antonio Dela Cruz, on the other, hand has only one account (Account No. 2), an “ITF” account in which Antonio is the PRINCIPAL OR BENEFICIAL OWNER and Juan acted as AGENT. Thus, Antonio Dela Cruz is entitled to a separate deposit insurance of P400,000.00 for his savings deposit.