A Deposit Guarantee Scheme is a financial safety net designed to protect depositors' funds in case a bank or financial institution fails. It ensures that individuals can recover a certain amount of their deposits, typically up to a specified limit, even if the bank goes bankrupt. This scheme helps maintain public confidence in the banking system and encourages people to save. Most countries have their own version of a deposit guarantee scheme, often managed by a government agency. For example, in the United States, the Federal Deposit Insurance Corporation (FDIC) provides insurance for deposits up to $250,000 per depositor, per bank.