Deposit insurance aims to protect depositors, but little focus has been on their welfare. By analyzing schemes in different countries, a model shows that depositors benefit from insurance unless banks guarantee solvency without it. Free insurance doesn't change depositor behavior but increases their utility. Risk-based premiums encourage depositor discipline and ensure resources for consumption. Banks may choose riskier strategies with fixed premiums over variable ones. The proportion of insured deposits doesn't affect decision-making but increases consumer utility. A simulation using Australian banking data shows when each insurance scheme may be preferred.