deposit insurance definition

deposit insurance

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.

deposit insurance is in the Banking, Commerce & Finance and Investing subjects.

deposit insurance appears in the definitions of the following terms: money market account (MMA), money market fund (MMF), bank note, truth in savings, depository insurance and Austrian School of Economics

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