FDIC limits

 These days getting lawmakers to agree on “anything” is no easy task but when it comes to the Federal Deposit Insurance Corporation or FDIC-insured amount of $250,000 at banks, they see a need to expand the protection amount. The FDIC’s deposit insurance guarantees that your money is safe in the event of a bank failure. For many Americans, the $250,000 limit is high enough to cover their deposits, and you can also get much more than $250,000 of FDIC coverage by keeping money in multiple different banks or having different types of accounts with the same bank. Businesses, however, often need to have much more than that amount in their accounts, and in light of mounting concerns about bank failures in the aftermath of the Silicon Valley Bank (SVB) collapse, they've been moving money out of banks they feel might be risky and into banks where they think their uninsured deposits will be safest. But lawmakers and others are worried this shuffling of money could destabilize the banking system. Several lawmakers are worried that small and medium-sized banks are getting burned as businesses move their money into some of the country’s largest banks, where they feel their money is safer. And former Treasury Secretary Steven Mnuchin suggested expanding protection to $10 or $25 million and not because we have that much in our bank accounts but to level the playing field between larger and smaller financial institutions. Advocates of a higher FDIC limit say that urgent action is needed to restore Americans' confidence in banks.