Every ringgit you deposit in a Malaysian bank is backed by a government safety net that most people never think about until a bank fails. That safety net is Perbadanan Insurans Deposit Malaysia (PIDM) — Malaysia's deposit insurance corporation. PIDM guarantees that if a member bank collapses, depositors get their money back up to RM250,000 per depositor per member bank. No registration, no application, no fee. If your money is in an eligible account at a licensed bank, you are already covered.
This guide explains exactly what PIDM covers, what it does not, how coverage works across multiple banks and account types, and what practical steps you should take if your savings exceed the insured limit.
What Is PIDM and Why Does It Exist
PIDM was established under the Malaysia Deposit Insurance Corporation Act 2011 (replacing the earlier 2005 Act). It is a statutory body under the Ministry of Finance, independent of Bank Negara Malaysia (BNM), though the two coordinate closely.
Its purpose is simple: protect depositors if a licensed bank fails. Malaysia has not had a bank failure since PIDM's inception, but the framework exists precisely so that depositors do not need to worry about it. The 1997-98 Asian financial crisis demonstrated what happens when depositor confidence evaporates — bank runs accelerate a crisis that might otherwise be contained. Deposit insurance removes the incentive to run.
PIDM is funded by annual premiums paid by member banks — not by taxpayers or depositors. Every BNM-licensed bank and Islamic bank in Malaysia is a PIDM member by law. You do not choose to opt in. Your bank already pays for your coverage.
How Much Is Covered
The coverage limit is RM250,000 per depositor per member bank. This was raised from RM100,000 in June 2022.
A few important details about how this limit works:
- Per bank, not per account. If you hold a savings account with RM100,000 and a fixed deposit with RM200,000 at the same bank, your total eligible deposit is RM300,000 — but PIDM covers only RM250,000. The remaining RM50,000 is uninsured.
- Per depositor, not per branch. Opening accounts at different branches of the same bank does not increase your coverage. Maybank Bangsar and Maybank KLCC are the same member institution.
- Joint accounts are treated separately. A joint account between two depositors is a separate insurable deposit from each person's individual accounts. This can effectively increase total household coverage.
- Trustee and nominee accounts have their own rules. PIDM assesses coverage based on the beneficial owner, not the account holder name. Professional trustees managing funds for multiple beneficiaries should check PIDM's specific guidance.
| Scenario | Total Deposits | PIDM Coverage | Uninsured | |---|---|---|---| | One person, one bank, one FD | RM200,000 | RM200,000 | RM0 | | One person, one bank, multiple accounts | RM300,000 | RM250,000 | RM50,000 | | One person, two banks, RM200,000 each | RM400,000 | RM400,000 | RM0 | | Joint account (2 depositors), one bank | RM250,000 | RM250,000 (joint) | RM0 |
What Is Covered
PIDM covers deposit products held at member banks. The definition is specific:
| Eligible Products | Not Eligible | |---|---| | Savings accounts | Money market deposits | | Current accounts | Repurchase agreements (repos) | | Fixed deposits (conventional) | Structured products | | Islamic deposits (savings, current, FD, investment accounts) | Foreign currency deposits | | Negotiable instruments of deposit (if issued to an individual) | Bearer deposits |
The key distinction: if it is a ringgit-denominated deposit at a licensed bank, it is almost certainly covered. If it involves market risk, foreign currency, or is a wholesale instrument, it is not.
E-wallets and stored value are not deposits. Touch 'n Go eWallet, BigPay, GrabPay, and Setel balances are stored value under e-money licences — not bank deposits. PIDM does not cover them. For more on this distinction, see our digital banks guide.
Conventional and Islamic Coverage Are Separate
This is the part that most people miss, and it works in your favour.
PIDM operates two separate protection systems:
- Deposit Insurance System (DIS) — covers conventional deposits at FSA-licensed banks
- Takaful and Deposit Insurance System (TIDIS) — covers Islamic deposits at IFSA-licensed banks and Islamic windows
If your bank offers both conventional and Islamic products — as most Malaysian banks do through their Islamic subsidiaries — your conventional deposits and Islamic deposits are covered separately, each up to RM250,000.
| Account Type | Bank | Coverage | |---|---|---| | Conventional savings | Maybank | Up to RM250,000 | | Islamic savings (Maybank Islamic) | Maybank Islamic | Up to RM250,000 (separate) |
In practice, a depositor at Maybank who holds RM250,000 in a conventional FD and RM250,000 in an Islamic FD at Maybank Islamic has RM500,000 of insured deposits — because Maybank and Maybank Islamic are separate member institutions under PIDM.
This is not a loophole. It is the intended design. Check whether your bank's Islamic arm is a separate PIDM member at pidm.org.my.
For more on how Islamic deposits work, see our Islamic FD guide.
Which Banks Are PIDM Members
All BNM-licensed commercial banks, Islamic banks, and digital banks are PIDM members. This includes:
Major conventional banks: Maybank, CIMB, Public Bank, RHB, Hong Leong Bank, AmBank, UOB Malaysia, OCBC Malaysia, HSBC Malaysia, Standard Chartered Malaysia, Affin Bank, Alliance Bank
Islamic banks: Bank Islam (BIMB), Bank Muamalat, CIMB Islamic, Maybank Islamic, RHB Islamic, Public Islamic Bank, Hong Leong Islamic, AmBank Islamic, HSBC Amanah, Standard Chartered Saadiq
Digital banks: GX Bank, Boost Bank, AEON Bank, KAF Digital Bank, Ryt Bank
Yes — the new digital banks carry the same PIDM coverage as Maybank or CIMB. A RM50,000 savings balance at GX Bank or Boost Bank is insured by PIDM to the same extent as a RM50,000 FD at Public Bank. The licence type (FSA or IFSA) determines which protection system applies, but the coverage limit is identical.
Coverage Is Automatic — No Registration Needed
You do not need to register with PIDM, fill in any form, or notify your bank. Coverage is automatic the moment you open an eligible deposit account at a member bank. There is no waiting period, no premium you pay, and no activation step.
PIDM member banks are required to display the PIDM membership sign — a blue and white logo — at their branches and on their websites. Look for it, but do not worry if you have never noticed it. Your coverage does not depend on whether you saw the sign.
What Happens if a Bank Fails
If BNM determines that a member bank has failed or is likely to fail, PIDM steps in. The process:
- BNM notifies PIDM that the bank is non-viable
- PIDM assesses all deposits at the failed bank against its records
- Reimbursement begins — PIDM aims to make payments to insured depositors as quickly as possible, historically targeting within weeks
- You receive up to RM250,000 of your eligible deposits. Amounts above the limit enter the bank's resolution process as unsecured claims
No Malaysian bank has failed since PIDM was established. The system has not been tested in a real payout scenario domestically — but that is the point. The framework is designed to prevent the need for it by maintaining depositor confidence.
Practical Steps: What You Should Actually Do
If your total deposits at one bank are under RM250,000
You are fully covered. No action needed. Continue earning the best rate you can find — check our FD rates comparison tool for current offers.
If your total deposits at one bank exceed RM250,000
Split your deposits across multiple banks. Each bank carries a separate RM250,000 coverage limit. With RM500,000 in savings, two banks give you full coverage. With RM750,000, use three.
Consider the conventional/Islamic split as well. If your bank has a separate Islamic subsidiary that is its own PIDM member, you can hold up to RM250,000 in conventional deposits and RM250,000 in Islamic deposits — RM500,000 covered at effectively the same banking group.
If you use digital banks
Your deposits are insured. GX Bank, Boost Bank, AEON Bank, KAF Digital Bank, and Ryt Bank are all PIDM members. The absence of physical branches does not affect your deposit protection. If you are keeping significant savings in a digital bank for the higher interest rate, you have the same safety net as a traditional bank customer.
If you hold e-wallet balances
Move any balance you consider meaningful savings into a bank deposit account. E-wallet stored value (Touch 'n Go, BigPay, GrabPay) is not covered by PIDM. These platforms are useful for daily spending float, but they are not savings vehicles.
If you want to check your coverage
PIDM provides a coverage calculator on its website where you can estimate your insured amount across multiple institutions. The full list of member banks is also published there. Use it.
Common Misconceptions
"PIDM only covers savings accounts." Wrong. It covers savings, current, and fixed deposit accounts — both conventional and Islamic. The product must be a ringgit-denominated deposit at a member bank.
"Digital banks aren't covered." Wrong. All five BNM-licensed digital banks are PIDM members with the same RM250,000 coverage as traditional banks.
"I need to register to be covered." No. Coverage is automatic for all eligible deposits at member banks.
"RM250,000 is per account." No. It is per depositor per member bank. Multiple accounts at the same bank are aggregated to a single RM250,000 limit.
"Foreign currency deposits are covered." No. PIDM covers ringgit-denominated deposits only. USD, SGD, or other foreign currency deposits are excluded.
The Bottom Line
PIDM is one of those things that works best when you never need it. Your deposits at any BNM-licensed bank — including all five digital banks — are automatically insured up to RM250,000 per depositor per member bank. Conventional and Islamic deposits are covered separately, which effectively doubles your insured limit at banking groups with separate Islamic subsidiaries.
The practical takeaway: if you have more than RM250,000 in deposits, spread them across multiple banks. If you are under the limit, you are already protected. Either way, the safety net is there — funded by banks, administered by PIDM, and backed by statute.
For the best rates on your insured deposits, compare current offers with our FD rates tool. If you are exploring where to park savings, our guides on the best FD rates in Malaysia and digital banks cover the options in detail.