Deposit Security Act

The Deposit Security Act (S 3012) raises the federal deposit insurance limit for noninterest-bearing transaction accounts (like checking accounts) to $10 million per depositor at insured banks and credit unions. It directly affects depositors who maintain such accounts, ensuring their full balance up to $10 million is insured, while allowing institutions to opt out of this coverage for 30 days after implementation or opt back in every 5 years. The bill defines noninterest-bearing transaction accounts as those with no interest, allowing easy withdrawals via checks or electronic transfers, without advance notice requirements. This replaces the current standard insurance limit for these account types.