Print
Interest on Required Reserve Balances and Excess Balances
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.
Frequently asked questions (19 KB PDF)
Related press releases
December 16, 2008
November 5, 2008
October 22, 2008
October 6, 2008
| Interest Rates Paid on Required Reserve Balances | |||||||
|---|---|---|---|---|---|---|---|
| Institutions with 1-Week Maintenance Period | Institutions with 2-Week Maintenance Period | ||||||
| Memorandum | Memorandum | ||||||
| Maintenance Period (Ending on) |
Rate | Average Target Federal Funds Rate During the Maint. Period2 | Spread2 | Rate | Average Target Federal Funds Rate During the Maint. Period2 | Spread2 | |
| May 6 2009 | 0.25 | NA | NA | 0.25 | NA | NA | |
| April 29 2009 | 0.25 | NA | NA | NA | NA | NA | |
| April 22 2009 | 0.25 | NA | NA | 0.25 | NA | NA | |
| April 15 2009 | 0.25 | NA | NA | NA | NA | NA | |
| April 8 2009 | 0.25 | NA | NA | 0.25 | NA | NA | |
| April 1 2009 | 0.25 | NA | NA | NA | NA | NA | |
| March 25 2009 | 0.25 | NA | NA | 0.25 | NA | NA | |
| March 18 2009 | 0.25 | NA | NA | NA | NA | NA | |
| March 11 2009 | 0.25 | NA | NA | 0.25 | NA | NA | |
| March 4 2009 | 0.25 | NA | NA | NA | NA | NA | |
| February 25 2009 | 0.25 | NA | NA | 0.25 | NA | NA | |
| February 18 2009 | 0.25 | NA | NA | NA | NA | NA | |
| February 11 2009 | 0.25 | NA | NA | 0.25 | NA | NA | |
| February 4 2009 | 0.25 | NA | NA | NA | NA | NA | |
| January 28 2009 | 0.25 | NA | NA | 0.25 | NA | NA | |
| January 21 2009 | 0.25 | NA | NA | NA | NA | NA | |
| January 14 2009 | 0.25 | NA | NA | 0.25 | NA | NA | |
| January 7 2009 | 0.25 | NA | NA | NA | NA | NA | |
| December 31 2008 | 0.25 | NA | NA | 0.25 | NA | NA | |
| December 24 2008 | 0.25 | NA | NA | NA | NA | NA | |
| December 17 2008 | 0.791 | 0.79 | 0.00 | 0.891 | 0.89 | 0.00 | |
| December 10 2008 | 1.00 | 1.00 | 0.00 | NA | NA | NA | |
| December 3 2008 | 1.00 | 1.00 | 0.00 | 1.00 | 1.00 | 0.00 | |
| November 26 2008 | 1.00 | 1.00 | 0.00 | NA | NA | NA | |
| November 19 2008 | 1.00 | 1.00 | 0.00 | 1.00 | 1.00 | 0.00 | |
| November 12 2008 | 1.00 | 1.00 | 0.00 | NA | NA | NA | |
| November 5 2008 | 0.90 | 1.00 | 0.10 | 1.11 | 1.21 | 0.10 | |
| October 29 2008 | 1.33 | 1.43 | 0.10 | NA | NA | NA | |
| October 22 2008 | 1.40 | 1.50 | 0.10 | 1.40 | 1.50 | 0.10 | |
| October 15 2008 | 1.40 | 1.50 | 0.10 | NA | NA | NA | |
| Interest Rates Paid on Excess Reserve Balances | |||||||
|---|---|---|---|---|---|---|---|
| Institutions with 1-Week Maintenance Period | Institutions with 2-Week Maintenance Period | ||||||
| Memorandum | Memorandum | ||||||
| Maintenance Period (Ending on) |
Rate | Lowest Target Federal Funds Rate During the Maint. Period2 | Spread2 | Rate | Lowest Target Federal Funds Rate During the Maint. Period2 | Spread2 | |
| May 6 2009 | 0.25 | NA | NA | 0.25 | NA | NA | |
| April 29 2009 | 0.25 | NA | NA | NA | NA | NA | |
| April 22 2009 | 0.25 | NA | NA | 0.25 | NA | NA | |
| April 15 2009 | 0.25 | NA | NA | NA | NA | NA | |
| April 8 2009 | 0.25 | NA | NA | 0.25 | NA | NA | |
| April 1 2009 | 0.25 | NA | NA | NA | NA | NA | |
| March 25 2009 | 0.25 | NA | NA | 0.25 | NA | NA | |
| March 18 2009 | 0.25 | NA | NA | NA | NA | NA | |
| March 11 2009 | 0.25 | NA | NA | 0.25 | NA | NA | |
| March 4 2009 | 0.25 | NA | NA | NA | NA | NA | |
| February 25 2009 | 0.25 | NA | NA | 0.25 | NA | NA | |
| February 18 2009 | 0.25 | NA | NA | NA | NA | NA | |
| February 11 2009 | 0.25 | NA | NA | 0.25 | NA | NA | |
| February 4 2009 | 0.25 | NA | NA | NA | NA | NA | |
| January 28 2009 | 0.25 | NA | NA | 0.25 | NA | NA | |
| January 21 2009 | 0.25 | NA | NA | NA | NA | NA | |
| January 14 2009 | 0.25 | NA | NA | 0.25 | NA | NA | |
| January 7 2009 | 0.25 | NA | NA | NA | NA | NA | |
| December 31 2008 | 0.25 | NA | NA | 0.25 | NA | NA | |
| December 24 2008 | 0.25 | NA | NA | NA | NA | NA | |
| December 17 2008 | 0.251 | 0.25 | 0.00 | 0.251 | 0.25 | 0.00 | |
| December 10 2008 | 1.00 | 1.00 | 0.00 | NA | NA | NA | |
| December 3 2008 | 1.00 | 1.00 | 0.00 | 1.00 | 1.00 | 0.00 | |
| November 26 2008 | 1.00 | 1.00 | 0.00 | NA | NA | NA | |
| November 19 2008 | 1.00 | 1.00 | 0.00 | 1.00 | 1.00 | 0.00 | |
| November 12 2008 | 1.00 | 1.00 | 0.00 | NA | NA | NA | |
| November 5 2008 | 0.65 | 1.00 | 0.35 | 0.65 | 1.00 | 0.35 | |
| October 29 2008 | 0.65 | 1.00 | 0.35 | NA | NA | NA | |
| October 22 2008 | 0.75 | 1.50 | 0.75 | 0.75 | 1.50 | 0.75 | |
| October 15 2008 | 0.75 | 1.50 | 0.75 | NA | NA | NA | |
1. The interest rates on required reserve balances and excess balances for the reserve maintenance periods ending December 17, 2008, were calculated using the upper bound of the target range of 0 to 0.25 percent established by the FOMC on December 16, 2008.
2. Effective with the reserve maintenance periods beginning December 18, 2008, the Board established interest rates paid on required reserve balances and excess balances rather than specifying a formula based on the target federal funds rate.
