Okuzeka
Finance & Banking vocabulary · Accounts & Deposits

Deposit insurance

Meaning in finance & banking, with examples

nounCommon term

In finance & banking, deposit insurance means: A public scheme that protects bank customers' deposits up to a set limit if their bank fails.

In Turkish: mevduat sigortası, mevduat güvencesi

How it is used

Used in retail banking, regulation and crisis news. Deposits are covered or insured up to a limit, and amounts above it are uninsured. Examples are the FDIC in the US, the FSCS in the UK and the TMSF in Türkiye.

Example sentences

  1. Deposit insurance helped prevent a bank run after the small lender collapsed.

  2. The branch displays a notice explaining how deposit insurance protects savings.

Common collocations

  • deposit insurance scheme
  • covered by deposit insurance
  • deposit insurance limit
  • insured deposits
  • depositMoney that you put into a bank account, or the act of putting it there. For a bank, customer deposits are its main source of funding.
  • regulatorA public body that makes and enforces the rules for an industry. Banking regulators license banks, set capital rules and inspect banks.
  • central bankA country's or region's main monetary authority, which issues money, sets the policy interest rate and works to keep prices and the financial system stable.
  • liquidityHow easily an asset can be turned into cash without losing value, or how much cash and easily sold assets a bank or company has to meet its payments.

More terms: Accounts & Deposits

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This page explains English vocabulary for learners. It is not financial advice.