WASHINGTON — The House overwhelmingly approved a measure Wednesday raising the $100,000 ceiling on federal bank deposit insurance to $130,000, and to double that amount for retirement accounts.
The vote was 413 to 10 for legislation raising the maximum insurance coverage. Retirement accounts such as IRAs and 401(k) plans would be insured to as much as $260,000.
Proponents say the move is needed to keep pace with inflation and encourage more people to save.
Republicans have pushed the bill through the House before, only to see it die in the Senate.
The banking industry has lobbied for an increase in the program established during the Depression.
Smaller community banks, especially, believe it would help them compete for deposits with bigger institutions.