national deposit guarantee schemes

National deposit guarantee schemes are programs designed to protect bank depositors by guaranteeing their deposits up to a certain limit if a bank fails. This means that if your bank goes bankrupt, you can recover your money, typically up to a specified amount (e.g., $250,000 in the U.S.). These schemes aim to maintain public confidence in the financial system, ensuring that people feel secure in depositing their money in banks. The funding for these schemes usually comes from contributions made by banks themselves.