Most Malaysians keep their savings in a bank account and never think about what happens if the bank itself runs into trouble. PIDM, the national deposit insurer, exists for exactly that scenario. Here are six things worth knowing about how it works before you move money around.
1. The limit is RM250,000 per depositor, per member bank
PIDM protects up to RM250,000 per depositor, per member bank (PIDM). The cap applies to your total across accounts at one bank, not to each account separately.
So if you have a savings account and a fixed deposit with the same bank, they share one RM250,000 limit. Spreading money across different member banks gives you a separate limit at each.
Coverage is also free and automatic. You do not apply for it and you do not pay for it. If you open an eligible deposit account at a member bank, you are covered.
2. Savings, current and fixed deposits are covered
The everyday products most people use are protected: savings accounts, current accounts, fixed deposits and Islamic deposit accounts (PIDM). The full list of insured and non-insured products sits on the PIDM website, so check there for anything unusual.
3. Investments are not deposits
PIDM lists investment accounts, unit trusts and crypto or digital assets among the products outside its coverage. That matters when a bank sells you both: a unit trust bought at a bank counter is still an investment, not a deposit, even though you bought it at the same branch.
If you are weighing where spare cash should go, the ASB, KWSP i-Invest and fixed deposit comparison shows how the options differ on risk and return.
4. Islamic deposits get their own limit
According to PIDM, Islamic deposits are protected separately, with their own RM250,000 limit, distinct from conventional deposits held by the same person. In practice, this depends on how your bank's Islamic and conventional business is structured. Confirm with your bank or with PIDM before counting on a doubled limit.
5. Licensed digital banks are covered too
Licensed digital banks such as GX Bank, Boost Bank and KAF Digital Bank are PIDM members, and their deposits get the same protection as traditional banks (PIDM). A digital bank being app-only does not change the RM250,000 rule.
Our digital bank comparison lays out how the licensed players differ.
6. E-wallet balances are a different thing
Touch 'n Go eWallet, GrabPay and similar e-wallets hold stored value. They are not bank deposit accounts. Consumer finance guides such as Money.com.my point out that e-wallet balances are not covered by PIDM.
The practical lesson is simple: an e-wallet is for spending, not for parking savings. Balance caps also apply. For example, Touch 'n Go's standard tier caps the balance at RM1,500, according to Money.com.my. To see how the main wallets differ, read our e-wallet comparison.
FAQ
Is my money safe in a Malaysian bank?
Deposits at PIDM member banks are protected up to RM250,000 per depositor per bank. Check that your bank is a PIDM member on the PIDM website.
Do I need to register for PIDM protection?
No. Coverage is free and automatic once you open an eligible deposit at a member bank.
Are digital banks covered by PIDM?
Yes. Licensed digital banks such as GX Bank, Boost Bank and KAF Digital Bank are PIDM members.
Are unit trusts and crypto covered?
No. PIDM lists investment accounts, unit trusts and crypto or digital assets as outside its coverage.
Should I keep more than RM250,000 in one bank?
That is a personal decision. If you hold more than the limit in one bank, the amount above RM250,000 is not covered under PIDM's rules. Moving the excess to another member bank is one common approach. Not financial advice.
