Interest on Reserve Balances

The Federal Reserve Banks pay interest on reserve 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 Financial Services Regulatory Relief Act of 2006 authorized the Federal Reserve Banks to pay interest on balances held by or on behalf of eligible institutions in master accounts at Reserve Banks, subject to regulations of the Board of Governors, effective October 1, 2011. The effective date of this authority was advanced to October 1, 2008, by the Emergency Economic Stabilization Act of 2008.

The interest rate on reserve balances (IORB rate) is determined by the Board and is an important tool for the Federal Reserve's conduct of monetary policy. For the current setting of the IORB rate, see the most recent implementation note issued by the FOMC. This note provides the operational settings for the policy tools that support the FOMC's target range for the federal funds rate.

The current IORB rate is captured in the table below and in the Board's Data Download Program (DDP). The table and DDP are generally updated each business day at 4:30 p.m., Eastern Time, with the next business day's rate. They are not updated on federal holidays.

Interest Rates on Reserve Balances for October 2, 2023
Last Updated: September 29, 2023 at 4:30 p.m., Eastern Time
Rate on Reserve Balances (IORB rate) 5.40 7/27/2023

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Last Update: September 29, 2023