bank insurance

Bank insurance is a safety measure that protects your deposits in case the bank fails. In many countries, government agencies (like the FDIC in the US) insure deposits up to a certain limit, ensuring that customers won’t lose their money if the bank encounters financial trouble. This coverage provides confidence and stability in the banking system, encouraging people to keep their savings in banks. It does not, however, insure investments like stocks or bonds outside of savings accounts. Essentially, bank insurance is a guarantee that your deposited funds are protected within specified limits, making banking safer.