FDIC

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Title: FDIC

Essay Details:

Subject: Business

Author: Terry M

Date: December 21, 2015

Level:

Grade: A

Length: 2 / 370

Essay text:

Interest is already calculated this way by most financial institutions. But there are a few that do not pay interest on that portion of an account that is required to be maintained as reserves. Fed requires 10% of transaction account deposits, which includes NOW accounts, be set aside as reserves. Those institutions which are not presently paying interest on this portion of the balance will have to change their calculations. Now, with the requirement to pay on the full balance, some of these institutions may choose to lower their interest slightly to compensate for the lost investable funds. What Is An "Account"? The title of "Truth In Savings" might lead you to think this regulation affects only savings accounts...

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