PDIC 500K on multiple banks

[jam2b]

Say there's two cases, a and b

A. 1,000,000 in Bank Z
B. 500,000 in Bank Z and 500,000 in Bank Y.

How much would I be able to keep in both cases should both bank Z and Y goes bankrupt?

 

[nasa321]

@jam2b A. 500k insured in Bank Z

B. 500k insured in Bank Z and 500k insured in Bank Y

More info:

https://www.pdic.gov.ph/di_howtofileclaims_dot

https://www.pdic.gov.ph/di_howtofileclaims_i

 

[mich83]

@nasa321 Yes. This confirms my thought on PDIC. 500k is a threshold per bank. Even if you have multiple accounts in one bank insurance limit is at 500k. Better to distribute it with different banks.

 

[anonymouswho]

@mich83 500k for individual account and another 500k for joint account

 

[mich83]

@anonymouswho Oww. I did not know this. How about and/or account? Is this considered a different account subject ng new threshold? 1) Personal, 2) Joint, and 3) and/or. To make it 1.5M in one bank?

 

[anonymouswho]

@mich83 Joint account pa rin. Hindi na separate na 500k.

Illustrative Examples

 

[concord1968]

@jam2b From what i learned in school and review,

A. 500k (since you’re only insured by PDIC for up to 500k)

B. 500k & 500k

But idk if it’s true in real life po hehe

 

[alexinga]

@jam2b 500k/passbook. But I wouldn’t be so high on it. My friend lost 9figures from a rural bank going under. Established since way beyond we were children. The money was mainly for businesses. They had multiple accounts but the sum all together was huge. When the bank went under, they filed a claim for insurance at BSP along with other lawsuits they filed. However, even with the insurance, they were told that before money could be given to them only after all the remaining assets of the bank is liquidated. I don’t remember exactly what they were told, but it was something along the lines of waiting at least 5 years and they don’t even know if they get te full 500k/account.

So yes you are protected up to 500k per account, which is better than losing it all in one account. But they’re not exactly great alternative all around.

Plus I dunno about you, but I find it very hard to keep just 500k/account if you need the cashflow to run certain entities. I believe there’s also other better and smarter ways to save if that’s your goal, and theres definitely well versed people here that can help you PH wise.

 

[foxglow]

@jam2b 500k?

 

[mariay99]

@jam2b Is this a trick question?
Or maybe I just dont have enough info based on the question lol but let me try.

Case A
Depends on the deposit insurance of the bank.
If the insurance is 500k, then it should be 500k.
The other bank doesnt matter since you didnt deposit any cash there anyways.

Case B
Depends also on the deposit insurance of the bank.
If both of them have a deposit insurance of 500k and you deposited 500k of your money in them, then you should be insured to how much they said they will.
So, in that case, I guess your cash is at least safe.

But my question is, why are you thinking that your banks are going to fail?

 

[mich83]

@mariay99 These banks are probably startups/digibanks or even rural banks. Not your reputable and established banks. Afaik, rural banks have high mortality rates.

 

[mariay99]

@mich83 Ah, in that case, yes that sounds like a cause for concern

 

[nicole888]

@jam2b In an event of a bank run that leads to bankruptcy, the person that withdraws first can get all of his money back - so it's like a race. This is in contrast with the stock market where everyone who holds that stock is affected when that stock crashes.

 

[mooches1]

@jam2b Parang nakita ko ito sa RFBT exam ah