Many friends are worried about the risk of financial management, and prefer to handle the deposit business with stable income in the bank, but all financial management has risks, even deposits are no exception! However, in order to maintain the credit of banks and stabilize the financial order, China implements the deposit insurance system, so what is deposit insurance? Let's get to know it together!

What is deposit insurance?

Deposit insurance refers to a financial security system in which banking financial institutions with deposits as insurance institutions pay premiums to deposit insurance fund management institutions to form deposit insurance funds. When a member institution has a business crisis or is facing bankruptcy, the deposit insurance fund management institution shall pay insured deposits to depositors in accordance with regulations and take necessary measures to maintain the safety of deposits and deposit insurance funds.

In addition, according to the Deposit Insurance Regulations, deposit insurance is subject to a limit payment, with a maximum payment limit of RMB500,000. If the total amount of funds calculated by the same depositor in all insured deposit accounts of the same insurance institution is within the maximum repayment limit, full repayment will be implemented; The part exceeding the maximum payment limit shall be compensated from the liquidation property of the insurance institution according to law.

(Image from official website of the State Council)

It should be noted that although the maximum payment limit of deposit insurance is RMB 500,000, the part exceeding the maximum payment limit can be paid above the 500,000 limit if the property of the insurance institution remains after liquidation.