Define: Deposit Insurance

Deposit insurance is a government program that protects depositors in case a bank fails. It typically covers a certain amount of money per depositor, per bank.

The amount of deposit insurance coverage varies by country and by the type of account. In the United States, for example, the standard coverage is $250,000 per depositor, per insured bank.

Not all banks are covered by deposit insurance. It is important to check if your bank is a member of the deposit insurance program in your country.

If a bank fails and you have more than the insured amount in your account, you may not receive the full amount back. It is important to diversify your deposits across multiple banks to ensure full coverage.

FDIC insurance is a type of deposit insurance specific to banks in the United States. It is a government agency that provides deposit insurance to depositors in U.S. banks.

Credit unions are often covered by deposit insurance, but it is important to verify with the specific credit union and the deposit insurance program in your country.

In some cases, you may be able to purchase additional deposit insurance coverage for amounts exceeding the standard limit. This is typically offered by private insurers.

Deposit insurance protects you as a depositor by providing a guarantee that a certain amount of your deposits will be covered in the event of a bank failure.

While deposit insurance provides a level of protection for depositors, there are still risks associated with banking and investing. It is important to understand the limitations of deposit insurance and to diversify your financial holdings.

You can find more information about deposit insurance in your country by contacting your bank, visiting the website of the deposit insurance program, or consulting with a financial advisor.