Deposit Insurance

Deposit insurance is a financial protection scheme that safeguards your money in banks and credit unions. If a bank fails, deposit insurance ensures that you get your deposits back, typically up to a certain limit—usually $250,000 per depositor, per institution in the U.S. This system helps maintain public confidence in the banking system and encourages people to save without fear of losing their money. Essentially, if your bank goes under, deposit insurance acts as a safety net, reimbursing you to help mitigate financial loss.