Bank Deposit Protection Act

The Bank Deposit Protection Act is a law that safeguards your savings in banks, ensuring you won't lose your money if the bank faces financial trouble. It typically guarantees deposits up to a certain limit, providing confidence and stability to customers. The act establishes a deposit insurance fund, managed by a regulator, which steps in to reimburse depositors in case of bank insolvency. This protection helps preserve public trust in the banking system and minimizes the risk of financial loss for account holders.