FDIC Interest Rate Restrictions Rate Limits Under 12 CFR Part 337.7 By DEBBIE WALKER Director of Regulatory and Compliance, QwickRate FDIC regulations impose deposit interest rate restrictions on insured financial institutions that are less than well capitalized. Such restrictions have been in place since 1992 and were designed to prevent a less than well capitalized institution from offering deposit rates that significantly exceed the prevailing rates in its normal market area. On Dec. 15, 2020, the FDIC issued a final rule that amends its methodology for calculating interest rate limits. As of April 1, 2021, the agency uses different approaches to determine the National Rate, the National Rate Cap and the Local Market Rate Cap, which the FDIC uses to ensure that an institution offers interest rates appropriate for its capitalization status. 20 NEBRASKA INDEPENDENT BANKER
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