When the FDIC announced its rate cap plans last year
, it didn't seem that bad since the caps were intended only for less than well capitalized banks which make up a small percentage of the total banks. However, the Jumbo CD Investments blog
describes how these rate caps are affecting the rates from healthy banks:
What is interesting that even healthy banks are deciding to follow the rate cap. I guess they figure if the FDIC thinks that is a “good” level they might as well fall in place.