Deposit insurance

Have you ever saved up your allowance money in a piggy bank? Well, when you put your money in a piggy bank, you want to make sure that your money is safe, right?

Similarly, when people put their money in a bank, they also want to make sure that their money is safe. That's where deposit insurance comes in.

Deposit insurance is like a special kind of protection for the money people put in the bank. It's like a secret superhero that keeps our money safe!

Here's how it works: When you give your allowance money to the bank, the bank uses it to give out loans and make investments. Sometimes, these loans and investments don't work out and the bank loses some of the money.

But don't worry! Deposit insurance makes sure that if the bank loses some of your money, you will still get it back. If the bank fails or goes bankrupt, deposit insurance will pay you back the money you had in the bank, up to a certain amount.

Think of deposit insurance as a piggy bank for your piggy bank. It's like a backup plan to make sure your money stays safe, even if something bad happens to the bank.

So, next time you put your allowance money in the bank, remember that deposit insurance is there to protect your money and keep it safe.