> The first $250k per depositor is automatically insured and then after that they have to pay premiums per account.
No, the banks have to pay premiums to FDIC for the insured amount, period. They have to pay premiums for these first $250k that get insured; it's "automatically insured" because they don't get a choice, but that insurance costs a market-price premium out of which all the potential payouts come.
No, the banks have to pay premiums to FDIC for the insured amount, period. They have to pay premiums for these first $250k that get insured; it's "automatically insured" because they don't get a choice, but that insurance costs a market-price premium out of which all the potential payouts come.