Deposit Assurance Schemes

Deposit Assurance Schemes are safety nets set up by governments or financial authorities to protect depositors’ funds if a bank or financial institution fails. They guarantee that individuals will get back a certain amount of their savings, up to a specified limit, even if the bank goes bankrupt. This helps maintain trust in the banking system and reduces the risk of panic withdrawals. Essentially, these schemes ensure that your deposits are protected, promoting stability and confidence in banking.