Definition, Meaning & Synonyms

deposit-guarantees

noun

/dɪˈpɒzɪt ˈɡɛrənˌtiːz/

Definition

Deposit guarantees are financial assurances provided by banks or financial institutions to protect depositors’ funds in case of bank failures.

Examples

Many countries offer deposit guarantees to enhance consumer confidence in the banking system.
If a bank operates under deposit guarantees, customers feel more secure about their savings.
In times of economic instability, deposit guarantees are crucial for maintaining trust in financial institutions.

Meaning

They ensure that the money you deposit in a bank account is safe, often backed by government programs, so you won’t lose your savings even if the bank goes under.