As the state deposit insurer, the PDIC protects depositors by providing a maximum deposit insurance coverage (MDIC) of ₱1 million per depositor per bank. In case a bank is ordered closed by the Monetary Board of the Bangko Sentral ng Pilipinas (BSP), the PDIC pays depositors of the closed bank their insured deposits, but not to exceed the MDIC.

The PDIC also assesses banks and collects assessments equivalent to 1/5 of 1% of bank’s total deposit liabilities. Assessments form part of the PDIC’s Deposit Insurance Fund (DIF), which the PDIC manages. The DIF is the PDIC’s capital/equity account, from which payments for deposit insurance are sourced. As Deposit Insurer, the PDIC prudently manages and builds up the DIF to ensure that it remains ready in case of potential insurance calls.