The standard maximum deposit insurance amount is described as the âSMDIAâ in FDIC regulations. The SMDIA is $250,000 per depositor, per insured bank, through December 31, 2013. On January 1, 2014, the SMDIA is scheduled to return to $100,000 per depositor, per insured bank, for all account ownership categories except Certain Retirement Accounts, which will remain at $250,000 permanently per depositor, per insured bank. I can understand raising the limit, but why lower it. And that leads to the question, why the temporary raise? Do you think they will stick with the 2014 revert back date or just leave it as is?
They might make it permanent, otherwise lots of funds could be moving on the day it expires, there could be some disruptions, bank liquidity problems, etc
What's the logic? The logic was "Let's get it passed". It was deemed too difficult to pass without a sunset provision. Will it be renewed/extended? Made permanent? WTF knows? It's almost four years away, there's about an even chance we'll have a new president by then.