II 

118TH CONGRESS 

1ST SESSION S. 3012 

To amend the Federal Deposit Insurance Act to provide for insurance for 

noninterest-bearing transaction accounts, and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

OCTOBER 4, 2023 

Mr. MANCHIN (for himself, Mr. BRAUN, and Mr. HICKENLOOPER) introduced 

the following bill; which was read twice and referred to the Committee 

on Banking, Housing, and Urban Affairs 

A BILL 

To amend the Federal Deposit Insurance Act to provide 

for insurance for noninterest-bearing transaction accounts, and for other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Deposit Security Act’’. 

5 SEC. 2. INSURANCE OF TRANSACTION ACCOUNTS. 

6 (a) BANKS AND SAVINGS ASSOCIATIONS.—Section 

7 11(a)(1) of the Federal Deposit Insurance Act (12 U.S.C. 

8 1821(a)(1)) is amended— 

9 (1) in subparagraph (B)— 


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1 (A) by striking ‘‘The net amount’’ and in2 serting the following: 

3 ‘‘(i) IN GENERAL.—Subject to clause 

4 (ii), the net amount’’; and 

5 (B) by adding at the end the following new 

6 clauses: 

7 ‘‘(ii) INSURANCE FOR NONINTEREST8 BEARING TRANSACTION ACCOUNTS.—Not9 withstanding clause (i), the Corporation 

10 shall insure the net amount that any de11 positor at an insured depository institution 

12 maintains in a noninterest-bearing trans13 action account in an amount not more 

14 than $10,000,000. Such amount shall not 

15 be taken into account when computing the 

16 net amount due to such depositor under 

17 clause (i). 

18 ‘‘(iii) OPT-OUT AND OPT-IN.— 

19 ‘‘(I) OPT-OUT.—An insured de20 pository institution may opt out of the 

21 insurance described in clause (ii) dur22 ing the 30-day period beginning on 

23 the date on which the program is es24 tablished. 


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1 ‘‘(II) OPT-IN.—An insured de2 pository institution that opts out 

3 under subclause (I) may opt into the 

4 program every 5 years. 

5 ‘‘(iv) NONINTEREST-BEARING TRANS6 ACTION ACCOUNT DEFINED.—For purposes 

7 of this subparagraph, the term ‘non8 interest-bearing transaction account’ 

9 means a deposit or account maintained at 

10 an insured depository institution— 

11 ‘‘(I) with respect to which inter12 est is neither accrued nor paid; 

13 ‘‘(II) on which the depositor or 

14 account holder is permitted to make 

15 withdrawals by negotiable or transfer16 able instrument, payment orders of 

17 withdrawal, telephone or other elec18 tronic media transfers, or other simi19 lar items for the purpose of making 

20 payments or transfers to third parties 

21 or others; and 

22 ‘‘(III) on which the insured de23 pository institution does not reserve 

24 the right to require advance notice of 

25 an intended withdrawal.’’; and 


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1 (2) in subparagraph (C), by striking ‘‘subpara2 graph (B)’’ and inserting ‘‘subparagraph (B)(i)’’. 

3 (b) CREDIT UNIONS.—Section 207(k)(1) of the Fed4 eral Credit Union Act (12 U.S.C. 1787(k)(1)) is amend5 ed— 

6 (1) in subparagraph (A)— 

7 (A) by striking ‘‘Subject to the provisions 

8 of paragraph (2), the net amount’’ and insert9 ing the following: 

10 ‘‘(i) NET AMOUNT OF INSURANCE

11 PAYABLE.—Subject to clause (ii) and the 

12 provisions of paragraph (2), the net 

13 amount’’; and 

14 (B) by adding at the end the following new 

15 clauses: 

16 ‘‘(ii) INSURANCE FOR NONINTEREST17 BEARING TRANSACTION ACCOUNTS.—Not18 withstanding clause (i), the Board shall 

19 fully insure the net amount that any mem20 ber or depositor at an insured credit union 

21 maintains in a noninterest-bearing trans22 action account in an amount not more 

23 than $10,000,000. Such amount shall not 

24 be taken into account when computing the 


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1 net amount due to such member or deposi2 tor under clause (i). 

3 ‘‘(iii) OPT-OUT AND OPT-IN.— 

4 ‘‘(I) OPT-OUT.—An insured cred5 it union may opt out of the insurance 

6 described in clause (ii) during the 30- 

7 day period beginning on the date on 

8 which the program is established. 

9 ‘‘(II) OPT-IN.—An insured credit 

10 union that opts out under subclause 

11 (I) may opt into the program every 5 

12 years. 

13 ‘‘(iv) NONINTEREST-BEARING TRANS14 ACTION ACCOUNT DEFINED.—For purposes 

15 of this subparagraph, the term ‘non16 interest-bearing transaction account’ 

17 means an account or deposit maintained at 

18 an insured credit union— 

19 ‘‘(I) with respect to which inter20 est is neither accrued nor paid; 

21 ‘‘(II) on which the account holder 

22 or depositor is permitted to make 

23 withdrawals by negotiable or transfer24 able instrument, payment orders of 

25 withdrawal, telephone or other elecVerDate Sep 11 2014 06:07 Oct 05, 2023 Jkt 049200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\S3012.IS S3012

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1 tronic media transfers, or other simi2 lar items for the purpose of making 

3 payments or transfers to third parties 

4 or others; and 

5 ‘‘(III) on which the insured cred6 it union does not reserve the right to 

7 require advance notice of an intended 

8 withdrawal.’’; and 

9 (2) in subparagraph (B), by striking ‘‘subpara10 graph (A)’’ and inserting ‘‘subparagraph (A)(i)’’. 

11 SEC. 3. INFLATION ADJUSTMENT OF DEPOSIT INSURANCE 

12 LIMIT. 

13 Section 11(a)(1) of the Federal Deposit Insurance 

14 Act (12 U.S.C. 1821(a)(1)) is amended by striking sub15 paragraph (F) and inserting the following: 

16 ‘‘(F) INFLATION ADJUSTMENT.—The 

17 Board of Directors and the National Credit 

18 Union Administration Board shall jointly pre19 scribe the amount by which the standard max20 imum deposit insurance amount and the stand21 ard maximum share insurance amount (as de22 fined in section 207(k) of the Federal Credit 

23 Union Act) applicable to any depositor at an in24 sured depository institution shall be adjusted on 

25 January 1 once during every 2-year period to 


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1 reflect the percentage increase, if any, from the 

2 preceding fiscal year in the Consumer Price 

3 Index For All Urban Consumers, published by 

4 the Bureau of Labor Statistics of the Depart5 ment of Labor).’’. 

Æ 


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