At a time when banks have no place to earn even meager interest safely, the FDIC has announced it needs an “emergency” increase in the insurance rate charged to insure your deposits.
The one time assessment with be 20 basis points ($.20 for each $100 on deposit), expected to generate $15 billion
The ongoing fee will be raised from $.14 to $.16 per $100 on deposit.
This was a completely predictable outcome of the Congressional mandate to increase the FDIC limit to $250k to cover deposits in banks for which no premiums were being paid in the past. It’s like allowing people to buy house insurance the day after their house burned down.
Thank you John McCain.