Deposit insurance

Deposit insurance,

Definition of Deposit insurance:

  1. Protection provided usually by a government agency to depositors against risk of loss arising from failure of a bank or other depository institution. Deposit insurance is mandatory, and pays claims from a pool of funds to which every depository institution regularly contributes. However, it covers only a fixed maximum amount per account holder. Also called depository insurance.

Meaning of Deposit insurance & Deposit insurance Definition