FDIC National Rates and Rate Caps: June 2026 Guide
How the FDIC's national rate and rate cap work in June 2026, who they apply to, and what the monthly figures do not tell you.
The FDIC's "National Rates and Rate Caps – June 2026" page is an official reference for a specific, narrow purpose: it sets the interest rate limits that apply to insured institutions that are less than well capitalized. It is not a consumer rate-shopping list, and it does not tell you what a healthy bank or credit union should pay you. For most readers choosing a deposit account, the page is useful background rather than a decision tool.
What the cap actually controls
The interest rate restrictions generally limit a less than well capitalized institution from soliciting deposits by offering rates that significantly exceed rates in its prevailing market. In other words, the cap is a supervisory guardrail aimed at weaker institutions, not a market-wide ceiling on what depositors can earn.
The current framework traces back to a Final Rule the FDIC Board of Directors approved on December 15, 2020, making certain revisions to the interest rate restrictions applicable to less than well capitalized institutions, effective April 1, 2021. That timing matters when comparing older and newer figures.
How the national rate and cap are calculated
The Final Rule redefined the "national rate" as the average of rates paid by all insured depository institutions and credit unions for which data is available, with rates weighted by each institution's share of domestic deposits. Weighting by deposits means large institutions move the average more than small ones.
The "national rate cap" is the higher of two formulas: the national rate plus 75 basis points, or 120 percent of the current yield on similar maturity U.S. Treasury obligations plus 75 basis points. For non-maturity deposits, the cap is the higher of the national rate plus 75 basis points or the federal funds rate plus 75 basis points.
A less than well capitalized institution may instead use a "local rate cap" for deposits gathered within its local market area. The Final Rule defines that local cap for a particular deposit product as 90 percent of the highest rate offered on that product by an institution or credit union accepting deposits at a physical location within the local market area.
The two cap methods side by side
| Feature | National rate cap | Local rate cap |
|---|---|---|
| Who can use it | Less than well capitalized institutions | Same institutions, for deposits from their local market area |
| Base measure | Deposit-weighted average of insured institutions and credit unions | Highest rate offered at a physical location in the local market |
| Formula | National rate plus 75 basis points, or 120 percent of similar-maturity Treasury yield plus 75 basis points, whichever is higher | 90 percent of the highest local rate on that product |
| Non-maturity deposits | National rate plus 75 basis points, or federal funds rate plus 75 basis points, whichever is higher | Same 90 percent local rule |
| Documentation | Published monthly by the FDIC | Institution must notify the FDIC regional director and keep evidence |
Worked example (Hypothetical)
Suppose, purely as an illustration, the published national rate were 0.50% and the similar-maturity Treasury yield were 4.00%. Under the first formula, the cap would be 0.50% plus 75 basis points, or 1.25%. Under the second, 120 percent of 4.00% is 4.80%, plus 75 basis points gives 5.55%. The higher figure, 5.55%, would be the cap.
The example shows why the Treasury-linked branch often dominates when market yields are elevated. It is arithmetic only; it is not a forecast and not a statement about any actual June 2026 figure.
Timing and data freshness
The monthly rate cap information is published every 3rd Monday of each month, and when that Monday falls on a Federal holiday, publication moves to the next business day. Published rates and yields are based on information available on the last business day of the prior month end. The FDIC notes one exception: rates and yields published on April 1, 2021, were based on information available as of February 26, 2021.
Historical data before May 18, 2009 is not available. Figures from May 2009 through March 31, 2021 reflect the older calculation, which averaged by branch and excluded credit unions; data posted after March 31, 2021 reflects the current method. The FDIC points readers to its Previous Rates page for that history.
If you run an institution using the local cap
Under Section 337.7(d), an insured depository institution that seeks to pay a rate up to its local market rate cap must provide notice and evidence of the highest rate paid on that product in its local market areas to the appropriate FDIC regional director. The institution must update its evidence and calculations for existing and new accounts monthly unless told otherwise, keep the information for at least the two most recent examination cycles, and provide it to the FDIC on request.
A practical checklist for that role: confirm eligibility before relying on the local cap, document the highest local rate with dated evidence, refresh it monthly, retain at least two examination cycles of records, and respond promptly to regional office requests.
What this means for a deposit shopper
For an ordinary reader comparing a savings account, CD, or high-yield deposit, the national rate and cap are not a benchmark for the best available offer. They describe limits on a subset of institutions. A bank that is well capitalized is not bound by the cap, so a rate above the published cap is not automatically a red flag for you; the relevant questions remain insurance status, terms, and how the rate can change.
One genuinely useful takeaway is the weighting concept: because the national rate is weighted by domestic deposits, it reflects the pricing of large institutions more than the pricing of small ones, so it can sit below what a competitive online bank offers.
What the source does not say
- It does not give the June 2026 numerical national rate or rate cap values in the material available here.
- It does not state which institutions are currently less than well capitalized.
- It does not say whether any specific bank or credit union is bound by the national cap or the local cap.
- It does not compare deposit products or recommend any account.
- It does not explain how the federal funds rate is determined for the non-maturity formula.
Readers who need the exact June 2026 figures should consult the FDIC's published monthly table directly, and the FDIC also offers email alerts when national rates are updated.
Sources
Informational only. Not financial, legal or investment advice. Check the primary sources listed above before you act on anything here.