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What bank depositors must know about PIDMs

17/05/2024

I am sure you have often seen the words PIDM on bank websites or at bank gates, but do you know what PIDM is?

The full name of PIDM is Perbadanan Insurans Deposit Malaysia (PIDM) or Malaysia Deposit Insurance Corporation (MDC) in English, and the Chinese name of PIDM is Malaysian Deposit Insurance Corporation (MDC).

PIDM is a government organization established in 2005 under the Deposit Insurance Corporation of Malaysia Act (PIDM), which provides two systems to protect those who have deposits and those who have insurance or Islamic insurance policies.

In the unfortunate event that a bank or an insurance company fails, PIDM will protect the depositors or the insured up to RM250,000. PIDM’s protection is automatic, i.e. there is no need to apply and pay for it.

Banks that you are familiar with are insured members of PIDM, such as Maybank, AmBank, Hong Leong Bank, RHB Bank, etc. If you can name them, they are all insured members of PIDM. Any bank you can name is covered by PIDM, except Bank Rakyat.

As far as business is concerned, banks’ savings accounts, current accounts, time deposits, foreign currency deposits, cheques, etc. are all covered by PIDM. Unit trusts, stocks, shares and gold-related products are not covered by PIDM.

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