How is the money you deposit protected?
There is more than one vault.
The scheme that protects bank deposits and the one that protects an investment account are different things. What is protected, and what is not, across countries.
In 30 seconds
- Many countries have deposit insurance that protects deposits up to a set amount if a bank fails. The limit differs by country.
- Investment accounts have separate protection. The US SIPC, for example, protects up to $500,000 but does not protect against falling prices.
- Keeping client money apart from the firm’s money — segregation — is another layer of protection. Which scheme applies to you depends on your country and the firm.
Protection comes in layers.
Deposit insurance, investor protection, the rule to keep money apart. There is more than one layer.
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Two vaults
Deposit insurance, which protects money held at banks, and investor protection, which protects money held at brokers and similar firms, are separate schemes.
US deposit insurance (FDIC) does not cover stocks, bonds, mutual funds or crypto assets.[1] Separate which money falls under which scheme.
107 deposit insurers worldwide.
Deposit insurance exists in many countries, with limits that differ by country.
Deposit insurers that are members of the International Association of Deposit Insurers (IADI), December 2025
From 115 jurisdictions. Some schemes are not members.
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An international association
107 deposit insurers from 115 jurisdictions are members of the International Association of Deposit Insurers (IADI), as of December 2025.[2]
Examples of limits
The United States protects $250,000 per depositor per bank[1]; the EU, including the euro area, €100,000[3]; the United Kingdom £120,000[4]; Australia A$250,000[5]; Singapore S$100,000[6]; India ₹500,000[7]; South Africa R100,000[8]; Brazil R$250,000.[9]
Currencies and ways of counting differ, so we do not rank which country is most generous.
What it protects is not falling prices.
Investor protection is for when a firm fails. It does not protect against market losses.
Upper limit of protection by the US SIPC (of which cash up to $250,000)
It does not protect against losses from falling prices.
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Investment accounts
The limit of protection from the US Securities Investor Protection Corporation (SIPC) is $500,000, including a $250,000 limit for cash.[10]
SIPC states that it does not protect against a decline in the value of securities.[10] What is protected is part of what cannot be returned when a firm fails — not the losses that come from investing.
The rule of keeping money apart.
Client money is kept apart from the firm’s money. That, too, is protection.
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Segregation
UK rules require a firm that receives client money to hold it separately from its own money, so that if the firm fails, client money can be clearly distinguished from what other creditors are owed.[11]
Segregation is an important protection, but how far it goes depends on national rules and the firm.
A scale to read before you deposit.
A scale for reading the reach of protection.
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Which scheme
Whether the money you deposit falls under deposit insurance or investor protection.[1][10]
The limit
What the limit is in your country, and how it is counted.[2]
Kept apart or not
Whether the firm keeps client money apart from its own.[11]
This is not advice
This edition explains how deposited money is protected. It does not recommend or compare any bank or firm.
Next question
NEXT QUESTIONBehind the sign stands your real counterparty.NEXT QUESTIONThere is a price beyond the price tag.See the Field Notes shelf →What this edition cannot tell you
- Deposit insurance limits for every country. Check IADI or each country’s scheme.
- The detailed conditions of investor protection in each country.