Main Street Depositor Protection Act

Key Points

• This bill would raise FDIC deposit insurance for noninterest-bearing transaction accounts (like business checking accounts) to a maximum of $5 million, up from the current $250,000 standard limit. The FDIC would set the exact new limit through rulemaking within 6 months.
• The extra insurance is specifically excluded from the largest global banks (those labeled "global systemically important" bank holding companies) and insured branches of foreign banks. This is designed to steer deposits toward smaller community banks and credit unions.
• Credit unions would also receive the same enhanced deposit insurance for noninterest-bearing transaction accounts, with the insured amount matching whatever the FDIC sets for banks.
• Small banks and credit unions with $10 billion or less in assets would be protected from special assessments or increased fees during a 10-year transition period, shielding them from the cost of expanding the insurance fund.
• Once the FDIC sets the new insurance limit, it cannot be changed or repealed without an Act of Congress, locking in the higher coverage permanently.