Deposit insurance, also known as deposit protection, refers to the establishment of a special deposit insurance fund by the state in the form of legislation, and it is clear that when a single financial institution has problems in its operation, it will pay depositors in time according to regulations to protect their rights and interests. The deposit insurance system is an important measure to protect the interests of depositors under the market economy, and it is also an important part of the financial safety net. China's Deposit Insurance Ordinance was officially implemented on May 1 2065, which provided a clear institutional guarantee for the public's deposit safety.

Deposit insurance protects the deposits of individuals, enterprises and other units, including RMB deposits, foreign currency deposits, principal and interest. However, bank wealth management products are not deposits and are not covered by deposit insurance. The deposits of senior bank managers in their own institutions and interbank deposits of financial institutions are also not covered by deposit insurance.

The premium is paid by the bank, and the main purpose of collecting the premium is to strengthen the market constraint on the bank, promote fair competition, form positive incentives, and promote the steady operation and healthy development of the bank. If the deposit is repaid, the deposit insurance fund management institution shall pay the deposit principal and interest in full within 7 working days in accordance with the regulations.