national deposit insurance schemes

National deposit insurance schemes are government-backed programs designed to protect bank customers' savings. If a bank fails, these schemes ensure that depositors can recover a certain amount of their money, typically up to a specific limit, which varies by country (e.g., $250,000 in the U.S.). This safety net helps maintain public confidence in the banking system, encouraging people to save money in banks without fear of losing it due to bank insolvency. Essentially, it acts as a financial security measure for individual depositors, promoting stability in the overall economy.