Deposit insurance protects eligible deposits up to a set limit if a covered bank fails, so customers can recover their money within that cap. Coverage and limits vary by country, for example the FDIC in the United States and the FSCS in the United Kingdom. The protection applies only to participating institutions and within the scheme's rules.
General information, not financial, legal, or tax advice. Verify current terms and eligibility with the provider before applying.
How deposit insurance works
Deposit insurance is provided by a national scheme that compensates eligible depositors if a participating bank or institution fails. Banks that take deposits are typically required to belong to the scheme, and the scheme pays out eligible balances up to its coverage limit, usually per depositor and per institution. In the United States the Federal Deposit Insurance Corporation covers up to 250,000 US dollars per depositor, per insured bank, for each account ownership category. In the United Kingdom the Financial Services Compensation Scheme covers up to 85,000 pounds per eligible person, per authorised firm. Limits and eligibility differ in other countries. This information is current as of 23 March 2026.
What deposit insurance covers
Deposit insurance generally covers eligible deposit accounts, such as current, savings, and similar balances, held at a participating institution, up to the scheme's limit. It does not usually cover investments, and the way limits apply can depend on account ownership and how balances are held across linked brands. Money held with some electronic money institutions and payment firms may be protected by safeguarding rather than deposit insurance, which works differently. Check whether a provider is covered by a deposit insurance scheme, which scheme, and the applicable limit.
Why it matters to a business
For a business, deposit insurance affects how protected its balances are if a provider fails, and the per institution limit may matter when holding larger sums. Some businesses spread balances across institutions or use providers covered by a recognised scheme to stay within limits. Coverage for business deposits, and whether it differs from personal coverage, varies by scheme and country. Confirm the scheme, eligibility for business accounts, and the limit with the provider, as these vary by region.
Frequently asked questions
What is deposit insurance?
How much does deposit insurance cover?
Does deposit insurance cover business accounts?
Is deposit insurance the same as safeguarding?
Definitions, fees, features, and eligibility change and vary by region. This page was last reviewed on 23 March 2026. Confirm current terms with the provider before applying.