You can now read 10 articles in a month for free on BostonGlobe.com. Read as much as you want anywhere and anytime for just 99¢.

The Boston Globe

Business

Firms step in as deposit guarantee is scaled back

NEW YORK — On the first day of the New Year, $1.5 trillion of bank deposits will lose an unlimited government guarantee that was granted during the financial crisis to assure skittish customers their cash was safe. For a handful of boutique firms that service banks, it is a boon for business.

The accounts losing the insurance are used by businesses, municipalities, and other entities like nonprofits that are willing to forgo any interest in order to have immediate access to their large pools of cash. These accounts hold about 20 percent of all deposits in US banks. Starting Jan. 1, only $250,000 in each noninterest-bearing account will be backed by the Federal Deposit Insurance Corp.

Loading comments...

You have reached the limit of 10 free articles in a month

Stay informed with unlimited access to Boston’s trusted news source.

  • High-quality journalism from the region’s largest newsroom
  • Convenient access across all of your devices
  • Today’s Headlines daily newsletter
  • Subscriber-only access to exclusive offers, events, contests, eBooks, and more
  • Less than 25¢ a week