The article discusses how deposit insurance systems work globally and in Ukraine, focusing on their role in ensuring financial security. It highlights the key principles of effective deposit insurance systems, such as limited coverage, institutional support, and regulatory oversight. The research shows that EU countries typically allocate 0.80% of insured deposits for insurance, with a minimum of 0.50%. It also identifies challenges in Ukraine's deposit insurance system, like insufficient funds for compensation and the need to align with EU standards. The article suggests reforms to enhance financial stability and align with international best practices.