A bank not well capitalized may not pay a high rate on these deposits
To increase the supply of housing in America, and for other purposes, section 901, Sec. 901.
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A bank not well capitalized may not pay a high rate on these deposits
The document says “may not”Who acts: covered insured depository institutionsHow: statuteSec. 901 in the PDF
What the document says
“A covered insured depository institution may not pay a rate of interest on custodial deposits that are accepted while not well capitalized that, at the time the funds or custodial deposits are accepted, significantly exceeds the limit set forth in paragraph (3).”
The section adds a new subsection (k) to section 29 of the Federal Deposit Insurance Act barring a bank that takes custodial deposits while not well capitalized from paying a rate of interest on them that significantly exceeds the local rate on deposits of similar maturity, or the national rate set by the Corporation for deposits taken outside its normal market area.
What the document actually says
“A covered insured depository institution may not pay a rate of interest on custodial deposits that are accepted while not well capitalized that, at the time the funds or custodial deposits are accepted, significantly exceeds the limit set forth in paragraph (3).”
That sentence, in plain words
A bank in weak shape may not pay too much for these deposits. The test is applied when the money comes in. The law sets what too much means.
What this is about
A weak bank can chase deposits by paying more. That can dig the hole deeper. The cap is the rate paid nearby, or a national rate.
No action is recorded against this proposal. That is not evidence that none has been taken, and nobody has yet read it against the record. See what the tracker does not yet cover.
Increase the supply of housing in America, Public Law 119-101, sec. 901, 140 Stat. 964 (2026). https://www.govinfo.gov/content/pkg/PLAW-119publ101/html/PLAW-119publ101.htm
This page
“A bank not well capitalized may not pay a high rate on these deposits,” Increase the supply of housing in America, section 901, Sec. 901. Read the Mandate, https://readthemandate.org/pl-119-101/proposal/sec901-interest-limit/ (retrieved August 26, 2026).
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