deposit protection

Deposit protection refers to systems that safeguard your money when you deposit it with a bank or financial institution. In many countries, such as the FDIC in the United States and the Financial Services Compensation Scheme (FSCS) in the UK, these schemes ensure that if a bank fails, your deposits—up to a certain limit—are protected. This means you can recover your money even if the bank cannot pay its debts. The aim is to maintain public confidence in the banking system and protect consumers’ financial interests.