Main Street Depositor Protection Act

The Main Street Depositor Protection Act expands deposit insurance coverage for noninterest-bearing transaction accounts at banks and credit unions, allowing individuals to insure up to $5 million in these accounts rather than the current standard limit. This change applies to accounts that do not earn interest and allow easy withdrawals for payments, such as checking accounts, while excluding large global banks and foreign bank branches. The Federal Deposit Insurance Corporation will set the exact insurance amount, which must be at least the current standard limit but no more than $5 million, and both banks and credit unions will be exempt from special fees during a transition period. Over a ten-year timeline, the insurance coverage for these accounts will gradually increase to full coverage, with regulators prohibited from allowing institutions to circumvent these protections.