FDIC suggests increasing deposit insurance limits for businesses and payroll accounts.
The Federal Deposit Insurance Corp. (FDIC) has recommended raising the insured deposit limit for US businesses to more than $250,000 in an effort to ease industry turmoil and prevent bank failures. The proposed change would allow the FDIC to cover higher deposits on a "targeted" basis, specifically for business accounts that pay for company operations such as payroll. The FDIC is seeking more flexibility to cover higher deposits to shore up accounts that pose the most risk to financial stability.