PH bank deposits hit record P22T in Q1 as Filipinos save more

CEBU CITY — Filipinos and businesses parked more cash in banks in the first quarter of 2026 pushing total deposits to a new high of P22.04 trillion and signaling sustained confidence in the Philippine banking system. 

Data from the Philippine Deposit Insurance Corporation (PDIC) said that 98.8 percent of accounts now fully insured after coverage hike to one million pesos. 

PDIC data showed bank deposits grew 9.8 percent year-on-year to P22.04 trillion as of end-March 2026, that’s an increase of P1.97 trillion — nearly double the P1 trillion, or 5.3 percent growth, recorded in the same period in 2025. 

The strong deposit growth came a year after the government doubled the maximum deposit insurance coverage to P1 million effective March 15, 2025, PDIC said individuals and private corporations accounted for more than three-quarters of the increase.

Individual depositors added P913.9 billion, or 46.4 percent of the total growth while private corporations added P606.6 billion, or 30.8 percent, and the remaining 22.8 percent came from government entities, banks, and trust departments

“The continued rise in deposit liabilities reflects the public’s sustained confidence in the banking system,” said PDIC President and CEO Roberto Tan. “Higher household and business deposits suggest that individuals and companies continue to view banks as safe, accessible, and reliable institutions for managing their funds,” he added.

The growth likely reflects higher household and business incomes supported by jobs, remittances, and business activity, PDIC noted. With more cash on hand, many also chose to keep funds in banks for security and easy access.

Time Deposits Drive Growth

By type, time deposits were the biggest driver, jumping by P896.1 billion or 45.5 percent of the total increase. Analysts said savers may have locked in rates ahead of expected interest rate cuts, while banks also offered competitive promos to attract stable funding.

Demand/NOW deposits rose by P589.6 billion, or 29.9 percent while savings deposits added P483.2 billion, or 24.5 percent— pointing to broad-based growth across products.

The number of deposit accounts also surged. As of March 2026, banks had 178.6 million accounts, up by 27.2 million or 18 percent from a year ago.  Savings accounts accounted for nearly all of it, with 26.9 million new accounts opened.

Importantly, deposit protection also expanded. Fully insured accounts grew 18.2 percent to 176.5 million, meaning 98.8 percent of all domestic deposit accounts are now fully covered by PDIC. Total insured deposits exceeded P5.0 trillion.

“The continued expansion in deposits, together with the broad coverage of deposit insurance, reflects sustained public confidence in the banking system following the increase in the MDIC to P1 million,” PDIC Tan said.

The record deposit level suggests households and businesses are saving more and keeping money within the formal banking system. For banks, the shift to time deposits also gives them more stable, long-term funding to support lending, PDIC noted.

With inflation easing and the economy holding steady, the banking sector appears to be benefiting from both stronger incomes and greater trust in the safety net.