The Federal Deposit Insurance Corp. (FDIC) issued three potential options for FDIC deposit insurance reform Monday.

The three options in the FDIC’s “Options for Deposit Insurance Reform” report are:

  1. Limited Coverage: Keeping the $250,000 standard insurance limit.
  2. Unlimited Coverage: Giving all depositors unlimited FDIC insurance.
  3. Targeted Coverage: Having business payment accounts have significantly higher FDIC limits than other ownership categories.

The FDIC believes targeted coverage is the best option because of its combination of providing protection for depositors and being more cost effective than an option like unlimited coverage.

“Business payment accounts pose greater financial stability concerns than other accounts given that the inability to access these accounts can result in broader economic effects,” says Martin J. Gruenberg, chairman of the FDIC in a written statement.

Bank failures have been the story in 2023

There have only been three bank failures so far in 2023. Each year since 2001 that has had any bank failures has had at least three. But the three in 2023 have been larger — based on assets — than all 25 bank failures in 2008. The asset totals in 2008’s bank failures were previously the largest in a year since 2001.

What you should know about current FDIC insurance

Make sure your money is at an FDIC-insured bank and within FDIC limits and following the FDIC’s rules. The FDIC’s standard deposit insurance amount is currently $250,000 per depositor, per insured bank, for each account ownership category. You should confirm your bank is FDIC insured using the FDIC’s BankFind Suite, and you can calculate your FDIC insurance using the FDIC’s Electronic Deposit Insurance Estimator (EDIE).