Main Street Depositor Protection Act

The Main Street Depositor Protection Act amends the Federal Deposit Insurance Act and the Federal Credit Union Act to provide deposit insurance for noninterest-bearing transaction accounts above the standard maximum deposit insurance amount, up to $5,000,000, with certain exclusions and a transition period.

Sec. 2, Transaction account insurance: This section adds a new provision to the Federal Deposit Insurance Act requiring the FDIC to insure noninterest-bearing transaction accounts at insured depository institutions. The insured amount must be at least the standard maximum deposit insurance amount but not more than $5,000,000, based on financial stability, economic growth, and Deposit Insurance Fund safety. Deposits in such accounts at subsidiaries of a single bank holding company are aggregated. Insurance is excluded for accounts at subsidiaries of global systemically important bank holding companies and insured branches of foreign banks. The insured amount cannot be modified or repealed except by an Act of Congress. It also defines "noninterest-bearing transaction account" as an account with no interest, withdrawal by negotiable instrument or electronic transfer, and no advance notice requirement. During the transition period, insured depository institutions with total assets of $10,000,000,000 or less are exempt from special assessments or assessment increases solely due to this insurance extension.

Sec. 2(b), Credit unions: This part amends the Federal Credit Union Act to provide similar insurance for noninterest-bearing transaction accounts at insured credit unions, with the maximum amount set by the FDIC's rule. It defines "noninterest-bearing transaction account" for credit unions similarly.

Sec. 2(c), Transition period: The FDIC must publish a plan within one year to gradually include these insured deposits in the estimated insured deposits calculation over 10 years, reaching 100% at the end. The National Credit Union Administration Board must do the same for credit union insured shares.

Sec. 2(d), Regulations: The FDIC and NCUA Board may issue regulations to carry out these amendments, including preventing evasion of the insurance limitation to only noninterest-bearing transaction accounts at eligible institutions.