A Deposit Guarantee Scheme is a financial safety net designed to protect depositors in the event that a bank or financial institution fails. These schemes ensure that individuals and businesses can recover a certain amount of their deposits, typically up to a specified limit, even if the bank goes bankrupt. This helps maintain public confidence in the banking system. Most countries have their own version of a deposit guarantee scheme, often backed by the government or a regulatory body. For example, in the United States, the Federal Deposit Insurance Corporation (FDIC) insures deposits up to $250,000 per depositor, per bank.