Banking Overhaul Bill May Make FDIC Deposit Insurance Hike to $250,000 Permanent

The United States Congress has been debated how to "fix" our financial system, including our commercial banking system, for sometime now.  It would appear they are close to a voting on a banking overhaul bill that may become law soon. 

There are many changes, in fact about 350 separate rules, for which the administration and regulators will have to define and write regulations in order to implement.  However, there is one that I thought was worth mentioning. 

FDIC Insurance Limit Hiked to $250,000

The banking overhaul bill, in its present form, would include a permanent increase to the FDIC insurance limit from the old $100,000 per bank, per depositor limit to $250,000 per bank, per depositor.  This is great news because the old limit was way outdated and needed to be brought current.

Business Checking Accounts Can Pay Interest

It also would eliminate the current ban on paying interest on business checking accounts, so that banks could decide to pay businesses on the funds deposited and held in their business checking accounts.