Core Viewpoint - The article discusses the implications of the deposit insurance system in China, particularly in light of recent bank failures, and explains how it protects depositors' funds. Summary by Sections Deposit Insurance System - The deposit insurance system in China guarantees full compensation for deposits and interest up to 500,000 yuan in the event of a bank failure, providing a crucial safety net for depositors [1] - As of now, only 0.37% of accounts in China exceed the 500,000 yuan threshold, indicating that the majority of depositors are covered by this insurance [1] Compensation for Couples - If a couple deposits 500,000 yuan each in the same bank, they can each claim up to 500,000 yuan in compensation, totaling 1 million yuan, as they are considered independent depositors under the law [3][11] - The total compensation includes only the principal amount, while interest earned may be compensated later during the bank's liquidation process [3] Key Points on Deposit Insurance - The 500,000 yuan limit applies to the total deposits of an individual across all accounts in the same bank, not per account [5] - Compensation is provided within seven working days after a bank declares bankruptcy, which is quicker than in many other countries, reflecting the central bank's commitment to depositor rights [5] - The insurance covers only traditional deposits (RMB and foreign currency) and does not extend to other financial products like wealth management products, bonds, or mutual funds [7] Recommendations for Depositors - Depositors are advised to verify the presence of deposit insurance signage at banks to ensure their deposits are protected [7] - It is recommended to diversify deposits across multiple banks to mitigate risks and keep total deposits below the insurance limit [9] - Choosing to deposit in joint-stock banks is suggested due to their higher interest rates compared to state-owned banks and better safety than smaller banks [9]