diff --git a/ethstaker_deposit/deposit.py b/ethstaker_deposit/deposit.py
index 398312154..9f558a6e9 100644
--- a/ethstaker_deposit/deposit.py
+++ b/ethstaker_deposit/deposit.py
@@ -33,6 +33,19 @@ def check_python_version() -> None:
         sys.exit()
 
 
+def check_term_encoding() -> None:
+    '''
+    Checks that the terminal uses utf-8 encoding and exits if not. This is done to avoid issues with passwords
+    '''
+    encoding = sys.stdin.encoding
+    if encoding not in ('utf-8', 'UTF-8'):
+        click.pause(
+            'Your terminal is using %s encoding which can present problems with passwords. '
+            'Please use "utf-8".' % encoding
+        )
+        sys.exit()
+
+
 def check_connectivity() -> None:
     '''
     Checks if there is an internet connection and warns the user if so.
@@ -109,6 +122,7 @@ def cli(ctx: click.Context, language: str, non_interactive: bool, ignore_connect
 def run() -> None:
     freeze_support()  # Needed when running under Windows in a frozen bundle
     check_python_version()
+    check_term_encoding()
 
     try:
         cli()