The deposit insurance system only covers deposit products in banking institutions. The law provides that the MDIC of ₱1 million per depositor, per bank, will cover the following types of deposit accounts:

• Savings / Special Savings
• Demand / Checking
• Negotiable Orders of Withdrawal (NOW)
• Long-Term Negotiable Certificate of Deposits (LTNCD)
• Time Deposits
• Islamic deposits as defined in BSP Circular No. 1139, dated 23 March 2022

The PDIC also covers foreign currency deposits pursuant to Republic Act No. 6426 (“An Act Instituting a Foreign Currency Deposit System in the Philippines, and for other purposes”). In case of bank closure, depositors may receive deposit insurance payment in the same currency as their insured deposits.

The law provides that the following accounts or transactions are excluded for deposit insurance:

• Other products of banks (Ex. investment products such as bonds, securities and trust accounts)
• Deposit accounts or transactions which:
  • are fictitious or fraudulent;
  • constitute or emanate from unsafe and unsound banking practices; and
  • are determined to be proceeds of an unlawful activity as defined under the Anti-Money Laundering Law
• Deposits in non-banks such as cooperatives and non-stock savings and loan associations