FDIC Raises Reciprocal Deposit Cap to $30 Billion

Reciprocal deposits allow banks to place customer funds across a network of insured institutions, keeping portions within the Federal Deposit Insurance Corporation’s $250,000 coverage limit per depositor at each bank. The structure lets companies maintain access to broader deposit insurance while managing cash through one banking relationship. Previously, qualifying banks could exclude from brokered-deposit treatment only the lesser of $5 billion or 20% of total liabilities, limiting their capacity to compete for large corporate balances.

The FDIC board approved an interim final rule on Aug. 27, 2026, implementing Section 902 of the 21st Century ROAD to Housing Act, which took effect July 11. Effective Sept. 1, the rule replaces the old cap with a tiered formula: 50% of the first $1 billion in liabilities, 40% of the next $9 billion and 30% above $10 billion, up to a $30 billion maximum. It also extends eligibility to well-capitalized banks with a CAMELS rating of 3. Comments are due Oct. 1.