(MoneyHippo.com) – Your money is generally safe in a bank as long as it is insured by a government-backed deposit insurance scheme. In most countries, banks are required by law to be members of a deposit insurance scheme that protects depositors in the event of a bank failure.

For example, in the United States, deposits in banks that are members of the Federal Deposit Insurance Corporation (FDIC) are insured up to $250,000 per depositor, per insured bank. In the European Union, deposits in banks that are members of the European Deposit Insurance Scheme (EDIS) are insured up to €100,000 per depositor, per insured bank.

It’s important to note that deposit insurance schemes only cover deposit accounts such as savings accounts, checking accounts, and certificates of deposit (CDs). Investments such as stocks, bonds, mutual funds, and annuities are not covered by deposit insurance schemes.

It’s also a good idea to choose a bank that is well-established and has a good reputation. Look for banks that have been in business for a long time, have a strong financial position, and are regulated by a reputable government agency.

Overall, the combination of deposit insurance and choosing a reputable bank can help ensure the safety of your money.

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