Deposit Insurance for Noninterest Accounts and Inflation Adjustment
The Act amends the Federal Deposit Insurance Act to provide insurance for noninterest-bearing transaction accounts up to $10,000,000. Institutions may opt out of this program within a specified period. Furthermore, the Act mandates the joint prescription of an adjustment to the standard maximum deposit insurance amount every two years based on the Consumer Price Index.
Key points
Deposit Insurance: Funds in noninterest-bearing transaction accounts are insured up to $10,000,000; this amount is not taken into account when computing the standard insurance limit.
Inflation Adjustment: The standard deposit insurance limit will be adjusted every two years based on the Consumer Price Index For All Urban Consumers (CPI-U).
Institutional Flexibility: Banks and credit unions can opt out of the $10 million insurance program within 30 days of its establishment, and may opt into the program every 5 years.
Expired
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