Deposit insurance lowers the risk premium in bank deposit rates by limiting potential losses for depositors. However, this effect can be influenced by the credibility of the insurance and the moral hazard it creates. Research using data from thirteen countries shows that uninsured countries have a higher risk premium compared to those with insurance. The level of insurance coverage affects the risk premium non-linearly, indicating market recognition of moral hazard. Countries with strong creditor rights show a weaker effect of deposit insurance on the risk premium, suggesting that investors see creditor rights as a substitute for explicit insurance.