PRATES: Change to the Payment of Interest on Excess Reserve Balances
By FEDERAL RESERVE - Dec 02, 2022, 01:07 PM ET
Last Updated - Feb 09, 2023, 12:26 AM EST
As previously announced, effective July 23, 2015, the Federal Reserve Board changed the formula for calculating interest for depository institutions with excess balances. The new formula is based on the daily interest rate on excess reserves (IOER rate) and the daily balance maintained. The IOER and IORR rates effective for a given day are now published on the "Interest on Required Balances and Excess Balances" page on the Federal Reserve Board's public website and are available in the Policy Rates Data Download Program.
