A bill to amend the Federal Deposit Insurance Act to provide deposit insurance for noninterest-bearing transaction accounts, and for other purposes

Progress

Timeline

• Mar 25Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.

Summary

**What it does:** This bill would expand federal deposit insurance (FDIC coverage) to fully protect noninterest-bearing transaction accounts - essentially checking accounts that don't earn interest. **Who it affects:** - Businesses and organizations that keep large amounts of cash in checking accounts for daily operations - Banks that hold these deposits - Account holders who currently have deposits above the standard FDIC insurance limit ($250,000) **What would change:** Currently, FDIC insurance only covers up to $250,000 per account. Under this bill, noninterest-bearing checking accounts would receive unlimited federal insurance protection, meaning the government would guarantee these deposits regardless of amount. This would eliminate the risk of losing money if a bank fails, particularly benefiting businesses that maintain large checking account balances for payroll and operations. The bill is currently under review in congressional committee and has not yet been voted on.

How This Affects You