Rep. Dan Meuser (R-PA) introduced legislation that seeks to ensure that federal deposit insurance keeps pace with inflation so checking and savings accounts receive the same insurance coverage over time.
The Growing Deposit Insurance for the Future Act would update the inflation adjustment in the Federal Deposit Insurance Act so that deposit insurance coverage automatically grows with inflation going forward.
“Deposit insurance is one of the most basic protections Americans rely on when they put their money in the bank,” Meuser said. “Families and workers saw their bank deposit insurance erode 24% under the Biden Administration, reducing the protection on their savings. This bill makes sure the coverage Americans count on today keeps its value in the future.”
Specifically, the bill would do the following:
- Updates the inflation adjustment in the Federal Deposit Insurance Act.
- Ensures the deposit insurance limit — whether $250,000 or higher in the future — will always keep pace with inflation.
- Protects long-term savers so the coverage they have when they open an account remains meaningful years later.
- Provides certainty for families, retirees, and small businesses who rely on insured accounts.
“Deposit insurance is about trust,” Meuser said. “Americans trust that when they put money in the bank, it will be there when they need it. This bill makes sure that trust is not eroded by inflation.”
Federal deposit insurance protects money in checking accounts, savings accounts, and certificates of deposit if a bank fails. The deposit insurance guarantees that customers will still have access to their money up to the coverage limit, which is currently $250,000 per depositor, per institution.
While the coverage limit is $250,000, the real value of that protection has been reduced by inflation, which can lower the purchasing power.
“Community banks regularly tell us their customers want stronger deposit insurance protection, especially for families and small businesses that keep their savings in one place for decades. This bill gives Americans confidence that the coverage they have when they open an account will keep its value for a lifetime, not shrink over time because of inflation,” Meuser said.
The legislation has been referred to the House Financial Services Committee.