This Act may be cited as the “Community Bank Deposit Access Act of 2025”.

(a) In general.—Section 29 of the Federal Deposit Insurance Act (12 U.S.C. 1831f) is amended by adding at the end the following:

“(j) Limited exception for custodial deposits.—

“(1) IN GENERAL.—Custodial deposits of an eligible institution shall not be considered to be funds obtained, directly or indirectly, by or through a deposit broker to the extent that the total amount of such custodial deposits does not exceed an amount equal to 20 percent of the total liabilities of the eligible institution.

“(2) DEFINITIONS.—In this subsection:

“(A) CUSTODIAL DEPOSIT.—The term ‘custodial deposit’ means a deposit that would otherwise be considered to be obtained, directly or indirectly, by or through a deposit broker, if the deposit is deposited at 1 or more insured depository institutions, for the purpose of providing or maintaining deposit insurance for the benefit of a third party, by or through any of the following, each acting in a formal custodial or fiduciary capacity for the benefit of a third party:

“(i) An insured depository institution serving as agent, trustee, or custodian.

“(ii) A trust entity controlled by an insured depository institution serving as agent, trustee, or custodian.

“(iii) A State-chartered trust company serving as agent, trustee, or custodian.

“(iv) A plan administrator or investment advisor, acting in a formal custodial or fiduciary capacity for the benefit of a plan, as defined in section 3 of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1002).

“(B) ELIGIBLE INSTITUTION.—The term ‘eligible institution’ means an insured depository institution that accepts custodial deposits, that were not deposited at the insured depository institution in return for fees paid by the insured depository institution pursuant to an agreement with a third party, if the insured depository institution—

“(i) has less than $10,000,000,000 in total assets as reported on the consolidated report of condition and income as reported quarterly to the appropriate Federal banking agency;

“(ii) (I) when most recently examined under section 10(d) was found to have a composite condition of outstanding or good; and

“(II) is well capitalized; or

“(iii) has obtained a waiver pursuant to subsection (c).

“(C) PLAN ADMINISTRATOR.—The term ‘plan administrator’ has the meaning given the term ‘administrator’ in section 3 of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1002).

“(D) WELL CAPITALIZED.—The term ‘well capitalized’ has the meaning given the term in section 38(b).”.

(b) Interest rate restriction.—Section 29 of the Federal Deposit Insurance Act (12 U.S.C. 1831f) is amended by striking subsection (e) and inserting the following:

“(e) Restriction on interest rate paid.—

“(1) DEFINITIONS.—In this subsection—

“(A) the terms ‘custodial deposit’, ‘eligible institution’, and ‘well capitalized’ have the meanings given those terms in subsection (j); and

“(B) the term ‘covered insured depository institution’ means an insured depository institution that—

“(i) under subsection (c) or (d), accepts funds obtained, directly or indirectly, by or through a deposit broker; or

“(ii) while acting as an eligible institution under subsection (j), accepts custodial deposits while not well capitalized.

“(2) PROHIBITION.—A covered insured depository institution may not pay a rate of interest on funds that, under subsection (c) or (d), are obtained, directly or indirectly, by or through a deposit broker or on custodial deposits that are accepted while not well capitalized that, at the time the funds or custodial deposits are accepted, significantly exceeds the limit set forth in paragraph (3).

“(3) LIMIT ON INTEREST RATES.—The limit on the rate of interest referred to in paragraph (2) shall be not greater than—

“(A) the rate paid on deposits of similar maturity in the normal market area of the covered insured depository institution for deposits accepted in the normal market area of the covered insured depository institution; or

“(B) the national rate paid on deposits of comparable maturity, as established by the Corporation, for deposits accepted outside the normal market area of the covered insured depository institution.”.