Senate Takes Up Bank Deposit Insurance Bill

From AP via Boston.com

The Senate on Tuesday began considering proposed legislation to extend for two years a Great Recession program that provides open-ended government insurance backing for certain non-interest-bearing bank accounts.

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It's interesting to read in the article that credit unions are with the large banks in opposing the extension. I guess it's understandable since the program only applies to banks.

This unlimited deposit insurance coverage is only for noninterest-bearing transaction accounts. So it won't directly affect most of us, but it could affect small banks. I speculated in this September post that the end of this coverage could provide a tiny boost to interest rates.