Deposit insurance is a kind of financial guarantee. It is a professional insurance fund established by the state through legal means and an insurance institution established for qualified deposit financial institutions. When financial institutions encounter operational difficulties or bankruptcy, deposit insurance institutions provide financial assistance to them or directly pay part or all of their deposits to depositors, thus safeguarding depositors' rights and interests, maintaining bank credit and stabilizing financial order. That's what deposit insurance means.

Are structured deposits included in deposit insurance?

Structured deposits are covered by deposit insurance. However, users should pay attention to the fact that only the funds of structured deposits are within the scope of deposit insurance, but the income is not within the scope of deposit insurance, and the income has to be managed according to derivative transactions. Simply put, structured deposits only protect the principal, not the income. It is precisely because structured deposits can protect capital, so they have gradually become a substitute for bank's capital preservation wealth management products.

The difference between insurance deposit and bank deposit

Due to the diversification of investment methods in the capital market, user deposits no longer exist only in banks, but also in insurance companies. However, the differences between insurance deposits and bank deposits are as follows:

1, the issuer is different: insurance depository means that users put funds in insurance companies. Bank deposit is to put the user's funds in the bank;

2. Different term: the term of insurance deposit is generally long-term, such as 3 years, 5 years, 10 years, etc. However, banks regularly have long-term and short-term periods, such as 1 month, 3 months, 1 year, 3 years, and the longest period will not exceed 5 years;

3. The loss of early withdrawal is different: because the insurance deposit is signed with the insurance contract agreement, it is assumed that it has been deposited for 5 years, but it has not expired. If the user withdraws in advance, not only will he lose interest, but he may also lose the principal. The specific loss depends on the contract. However, if it is withdrawn in advance on a regular basis, the interest on the unexpired part of the early withdrawal shall be calculated according to the current period;

4. Different income: Generally speaking, the income of insurance deposits is higher than that of bank deposits, mainly because the deposit period of insurance deposits is longer.

This paper mainly writes about the significance of deposit insurance and related knowledge points, and the content is for reference only.