Deposit insurance is government backing of bank deposits up to a certain amount -- currently, $250,000 in the U.S. It was raised from $100,000 in 2008 as an emergency measure in he wake of the Financial Crisis of 2008. In the U.S. Federal Deposit Insurance Corporation, a federal agency, handles the insurance and charges a small fee. When a bank is insolvent and cannot cover its deposits, the FDIC can and does intervene, and may seize the bank. In Europe the governments raised the insurance levels during the 2008 crisis, and in some cases insure all deposits no matter how large.