This system guarantees depositors their funds and instantly insures 1.1 million of all depositors representing approximately 93% of all depositors in licensed banks in Palestine.

Each licensed bank in the West Bank and Gaza Strip will pay a specified percentage of  its total deposits as insurance to the PDIC. The insurance will be invested in separate funds, one for conventional banks and the other for Islamic banks in a manner that complies with Islamic law. In the event of the liquidation of any bank, the PDIC can return deposits to depositors quickly from the insurance. 

A depositor does not have to pay any fees to benefit from the insurance on his deposits; the sum is paid by the member banks.

In its first meeting, the PDIC Board of Directors set a ceiling of ten thousand dollars for each account.

The depositor will receive ten thousand dollars in immediate compensation (within one month from the date of the claim). In other words, the immediate compensation will be based on the whole deposits which held by the depositor in member banks, for example: if the depositor has a ten accounts with ten different banks, in each one has 10,000 $ or equivalent, the value of the immediate compensation will be $ 100,000.