Because of inflation and the quality of life now I believe the insurance coverage need to be raised. The terrible economy we have had for years is a big concern for some. These people work very hard for their money and would have a terrible problem if their money they saved up disappeared. Money is very important especially for retired people. We need to be sure we will have enough money to survive in an emergency.
Whatever assets people hold in a bank should be guaranteed absolutely. The FDIC should insure all the money held by American citizens in banks. The current $250,000 is too low. The limit has not kept up with insurance, or with the reality of the times. Banks are participating in shady activities (and have been for a while) that are finally coming to light. Unless people's money is protected, people will lose faith in the banking industry. This will cause loans and investment to come to a screeching halt.
FDIC limits should not be increased because the benefit would not be worth the cost. The FDIC should be a last line of defense against economic collapse, ensuring that people have enough money to live if banks should fail and run out of money. The FDIC is not intended to ensure that the rich are able to maintain all of their money in case of a bank collapse. The banks pay interest as the compensation for the risk of keeping your money there, which is a very low risk.
The insurance coverage limit of the FDIC should not be increased. There is no danger that most banks will fail, and most people are not demanding additional insurance. Also, if anyone needs insurance for more than the hundred thousand dollars that is already guaranteed, they can probaby afford to buy additional insurance themselves.
No, the insurance coverage limit of the FDIC should not be increased, because the limit serves a valid function. With the limit, people are encouraged to diversity where they hold their assets. This gives more banks an opportunity to be healthy, and it limits their liability to any one depositor. It is a good thing to have a limit.