Fed to Allow Banks to Pay Interest on Demand-Deposit Accounts

The Federal Reserve has adopted a rule allowing member banks of the Fed system to pay interest on demand-deposit accounts.

The rule implements a provision of the Dodd-Frank Act, the law enacted last year that revamps financial regulations in response to the financial crisis.

The rule takes effect on July 21, the central bank said in a statement today in Washington.

To contact the reporter on this story: Jeannine Aversa in Washington at javersa@bloomberg.net

To contact the editor responsible for this story: Chris Wellisz at cwellisz@bloomberg.net

Press spacebar to pause and continue. Press esc to stop.

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.