If you are a depositor with an observant eye, you will surely see signs in your bank that say it is a member of the Philippine Deposit Insurance Corporation (PDIC).
These signs also say that deposits are insured with PDIC and that the maximum deposit insurance for each depositor is Five Hundred Thousand Pesos (PhP. 500,000.00).
Passbooks issued by banks to depositors also contain similar information.
This is evidently intended to make such information on bank deposit insurance readily available to all depositors for their guidance.
Other equally important information
Of course, there are other equally important information on bank deposit insurance not found in either of those signs or passbooks that a depositor should also know.
Like, for instance, the determination of the insured deposit a depositor is entitled to recover from PDIC when the Monetary Board of the Bangko Sentral ng Pilipinas (BSP) orders the closure of an insured bank.
Determination of the insured deposit
How then do we determine the insured deposit? By adjusting the outstanding balance of each account maintained by a depositor in a closed insured bank.
The adjustment is made by updating the interests earned, deducting the withholding taxes due, adding together all the accounts maintained in the same right and capacity, and deducting all the unpaid loans and other obligations, if any.
But in no case shall the amount due to a depositor from PDIC for all the accounts maintained in the same right and capacity in a closed insured bank exceed the maximum deposit insurance of PhP. 500,000.00.
Let us say, for instance, that a person by the name of Miguel Maykaya maintains in the same right and capacity three accounts with an insured bank known as Banco Mo.
And each account has PhP. 1,000,000.00 deposit.
If the Monetary Board of the BSP orders the closure of Banco Mo, how much is Miguel Maykaya entitled to recover from PDIC for all his three accounts?
Assuming that the remaining amount after making the adjustment on the outstanding balance of each account is PhP. 2,500,000.00, Miguel Maykaya is entitled to recover PhP. 500,000.00 only from PDIC.
And this is for all (not each) of his three accounts.
[References: RA 3591, as amended, PDIC website: http://www.pdic.gov.ph, and Usapang Pera: Mga Dapat Alamin-A PDIC Guidebook on Basic Banking & Financial Transactions (Launch Edition) by Efren LI. Cruz, RFP]