Previously, less than well-capitalized FDICinsured institutions cannot pay more than 75 basis points above the prevailing rates for deposits in the applicable market area. Effective January 1, 2010, the rules for determining compliance with the 75 basis point ceiling changed. Institutions subject to interest rate restrictions will be required to use the “national rate” to determine conformance with the restrictions, unless they qualify to use local market area rates. Before, these interest rate restrictions were measured against local market area rates. In many areas, the national rate may be lower than local market area rates that banks have been using as a benchmark. As a result, many banks may have to lower applicable deposit rates to comply with the new rules.