Community Bank Deposit Access Act of 2025

This bill lets certain small, healthy banks treat some “custodial deposits” differently. It says these deposits won’t count as “brokered” as long as they stay under 20% of the bank’s total liabilities. Custodial deposits are funds placed by a bank or trust company, or by a plan administrator or investment adviser acting as a custodian, to help provide or maintain FDIC insurance for other people’s money . The exception is only for eligible banks: generally those with under $10 billion in assets, solid recent exam results, and strong capital levels, or those given a waiver.

The bill also sets interest rate limits for banks that take brokered funds, or that take custodial deposits while not well capitalized. Those banks can’t pay interest that’s well above local market rates (or the national rate if outside their normal area) on those funds.

• Who is affected: Small insured banks with under $10B in assets and strong finances; entities placing custodial deposits like bank trust arms, state‑chartered trust companies, and plan administrators/investment advisers acting as custodians.
• What changes: Up to 20% of a bank’s liabilities in custodial deposits won’t count as brokered; stricter interest caps apply when a bank takes brokered funds or accepts custodial deposits while not well capitalized .