deposit guarantee schemes

Deposit guarantee schemes are safety nets for bank customers, ensuring that if a bank fails, customers can still recover their insured deposits, typically up to a certain limit. Funded collectively by banks, these schemes promote stability in the financial system and protect people's savings. They do not cover investments or other financial products. The goal is to maintain trust in the banking system by providing reassurance that deposits are protected up to the guaranteed amount, encouraging continued savings and financial stability.