How will interest earnings for the excess balance account be calculated?
The Federal Reserve Banks will calculate interest earnings on the aggregate balance in the excess balance account based on the average of end-of-day aggregate balances held in the account over the course of a seven-day maintenance period, beginning on a Thursday and ending on the following Wednesday. Aggregate balances in the excess balance account will earn interest at the excess balance rate set by the Board of Governors of the Federal Reserve System. For details on the formula used in the calculation, please visit www.reportingandreserves.org (Off-site Link). For current rates, please visit Interest on Required Reserve Balances and Excess Balances (Off-site Link).
The Federal Reserve Banks will calculate interest earnings on the aggregate balance in the excess balance account based on the average of end-of-day aggregate balances held in the account over the course of a seven-day maintenance period, beginning on a Thursday and ending on the following Wednesday. Aggregate balances in the excess balance account will earn interest at the excess balance rate set by the Board of Governors of the Federal Reserve System. For details on the formula used in the calculation, please review How to Calculate Required Reserve Balances and Excess Balances (PDF). For current rates, please visit Interest on Required Reserve Balances and Excess Balances (Off-site Link).
Related Questions
- How does an excess balance account differ from the pass-through correspondent/respondent relationship that a participant may already have with a correspondent?
- Is participation in an excess balance account required by the Federal Reserve?
- How will interest earnings in the excess balance account be disbursed?
