4 deposits protected by PIDM: Saving, FD, Joint, Foreign Currency

Updated: January 1, 2018 / Home » Financial Plan » Banking

If a bank close down or bankrupt suddenly, does it mean we lost all money in our saving account?

In Malaysia, all commercial banks and all Islamic banks, including foreign banks operating in Malaysia, are member institutions of PIDM.

PIDM Protecting Our Deposits up to RM 250,000

PIDM (Perbadanan Insurans Deposit Malaysia) is an institution that protects our deposits in the bank as well as our takaful and insurance benefits in the unlikely event of a failure of a member bank or a takaful operator / insurance company.

As a depositor, we do not need to apply or register for protection because deposit insurance is provided automatically for eligible deposit accounts.

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PIDM

So, if the unlikely event of a member bank failure, PIDM will reimburse our insured deposits.

Besides, our eligible deposits are protected up to RM250,000 per depositor per member bank. If we have deposited in several member banks, our deposits in different member banks are protected separately.

Deposits eligible for protection

  • Current and savings deposit accounts
  • Fixed deposits
  • Joint accounts, trust accounts
  • Foreign currency deposits

Deposits NOT eligible for protection

  • Deposits not payable in Malaysia
  • Inter-bank money market placements
  • Negotiable instruments of deposit (NIDs) and other bearer deposits
  • Repurchase agreements
  • Unit trusts

source: PIDM

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