Deposit Interest Rate

Interest rate paid on deposit accounts by commercial banks and other depository financial institutions. Depository institutions are prohibited by Federal Reserve Regulation Q from paying interest on checking accounts. Interest-bearing deposit accounts have been completely deregulated since March 31, 1986, when the old interest rate ceilings under Regulation Q were abolished. Rate ceilings were phased out over a six-year period by the Depository Institutions Deregulation Committee.