After Bank Failures, Critics Argue FDIC Limit of $250,000 Is Not High Enough
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Lawmakers on both sides of the aisle said they will consider raising the Federal Deposit Insurance Corporation (FDIC) insurance limit beyond $250,000 to better protect bank deposits.
The FDIC’s deposit insurance guarantees that your money is safe in the event of a bank failure. For many Americans, the $250,000 limit is high enough to cover their deposits, and you can also get much more than $250,000 of FDIC coverage by keeping money in multiple different banks or having different types of accounts with the same bank.
Businesses, however, often need to have much more than that amount in their accounts, and in light of mounting concerns about bank failures in the aftermath of the Silicon Valley Bank (SVB) collapse, they've been moving money out of banks they perceive to be risky and into banks where they think their uninsured deposits will be safest.
