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Interest on Required Balances and Excess Balances
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The Federal Reserve Banks pay interest on required reserve balances--balances held at Reserve Banks to satisfy reserve requirements--and on excess balances--balances held in excess of required reserve balances and contractual clearing balances. The Board of Governors has prescribed rules governing the payment of interest by Federal Reserve Banks in Regulation D (Reserve Requirements of Depository Institutions, 12 CFR Part 204).
The interest rate paid on required reserve balances is determined by the Board and is intended to eliminate effectively the implicit tax that reserve requirements used to impose on depository institutions. The interest rate paid on excess balances is also determined by the Board and gives the Federal Reserve an additional tool for the conduct of monetary policy.
The Board will continue to evaluate the appropriate settings of the rates paid on balances in light of evolving market conditions and make adjustments as needed.
The interest rates to be paid on required reserve balances and excess balances are posted to this website generally on the last Wednesday of the reserve maintenance period at 4:30 p.m.
Current Data: Third Quarter of 2012
| Interest Rates Paid on Required Reserve Balances | |||
|---|---|---|---|
|
Institutions with 1-Week Maintenance Period |
Institutions with 2-Week Maintenance Period |
||
|
Maintenance Period (Ending on) |
Rate | Rate | |
| September 12 | .25 | NA | |
| September 5 | .25 | .25 | |
| August 29 | .25 | NA | |
| August 22 | .25 | .25 | |
| August 15 | .25 | NA | |
| August 8 | .25 | .25 | |
| August 1 | .25 | NA | |
| July 25 | .25 | .25 | |
| July 18 | .25 | NA | |
| July 11 | .25 | .25 | |
| July 4 | .25 | NA | |
| Interest Rates Paid on Excess Reserve Balances | |||
|---|---|---|---|
|
Institutions with 1-Week Maintenance Period |
Institutions with 2-Week Maintenance Period |
||
|
Maintenance Period (Ending on) |
Rate | Rate | |
| September 12 | .25 | NA | |
| September 5 | .25 | .25 | |
| August 29 | .25 | NA | |
| August 22 | .25 | .25 | |
| August 15 | .25 | NA | |
| August 8 | .25 | .25 | |
| August 1 | .25 | NA | |
| July 25 | .25 | .25 | |
| July 18 | .25 | NA | |
| July 11 | .25 | .25 | |
| July 4 | .25 | NA | |
Related Press Releases
- Federal Reserve issues technical note concerning the calculation of interest rates on required reserve balances and excess balances for the maintenance periods ending December 17, 2008 (December 16, 2008)
- Federal Reserve announces it will alter formulas used to determine interest rates paid to depository institutions on required reserve balances and excess reserve balances (November 5, 2008)
- Federal Reserve announces it will alter the formula used to determine the interest rate paid to depository institutions on excess balances (October 22, 2008)
- Board announces that it will begin to pay interest on depository institutions' required and excess reserve balances (October 6, 2008)
