Fed Plans Zero Interest on New Payment Accounts
Published Date: 5/26/2026
Proposed Rule
Summary
The Federal Reserve is proposing a change to how it treats special-purpose payment accounts, called Payment Accounts, by not paying interest on the money held in them. This update affects banks with master accounts and these new Payment Accounts but won’t change reserve requirements, which stay at zero. If you want to share your thoughts, you have until July 27, 2026, to comment!
Analyzed Economic Effects
5 provisions identified: 1 benefits, 3 costs, 1 mixed.
Fed won't pay interest on Payment Accounts
If your institution opens a Payment Account at a Federal Reserve Bank, the Reserve Banks would not pay interest on balances held in that Payment Account under the proposed revisions to Regulation D. This change is explicit in the proposal and would treat Payment Accounts differently than master accounts for interest purposes.
Payment Account holders barred from EBAs
Under the proposal, a Payment Account holder would not be allowed to participate in an excess balance account (EBA). EBAs currently pay interest on participant balances, so Payment Account holders would lose the option to hold balances in an interest-paying EBA.
Closing Balance Limit of up to $1 billion
The Board proposes that each Payment Account would be subject to a Closing Balance Limit set by the Reserve Bank based on expected payment activity, and that limit would not exceed $1,000,000,000. Reserve Banks would review an individual Payment Account's Closing Balance Limit at least annually and could allow temporary exceedances in unusual circumstances (with Board consultation if the Temporary Closing Amount exceeds $1 billion).
Reserve requirements remain at zero
The proposal would not change reserve requirement ratios; they would remain set at zero percent, consistent with prior Board actions (reserve ratios have been zero since March 2020).
Payment Accounts are optional access
Payment Accounts would be a new, optional way for institutions to request Federal Reserve accounts and services; no existing account holders would be forced to change accounts, and institutions could still request a master account or access services via a correspondent. The Board states Payment Accounts are optional and would not impose mandatory requirements on small entities.
Your PRIA Score
Personalized for You
How does this regulation affect your finances?
Sign up for a PRIA Policy Scan to see your personalized alignment score for this federal register document and every other regulation we track. We analyze your financial profile against policy provisions to show you exactly what matters to your wallet.
Key Dates
Related Federal Register Documents
2025-21626 — Regulatory Capital Rule: Modifications to the Enhanced Supplementary Leverage Ratio Standards for U.S. Global Systemically Important Bank Holding Companies and Their Subsidiary Depository Institutions; Total Loss-Absorbing Capacity and Long-Term Debt Requirements for U.S. Global Systemically Important Bank Holding Companies
Big U.S. banks that are super important to the economy are getting new rules to keep them safer and stronger. These changes tweak how much money they must keep on hand and how they handle long-term debt, helping prevent financial trouble. The new rules kick in soon and could affect how these banks manage billions in assets and debt.
2026-10375 — Proposed Revisions to the Federal Reserve Policy on Payment System Risk and the Guidelines for Account and Services Requests
The Federal Reserve is updating its rules to create special Payment Accounts for certain payment activities and changing how banks request access to these accounts and other services. Banks labeled as Tier 3 should hold off on new account requests while these updates are finalized. Comments on these changes are open until July 27, 2026, and the updates aim to make payment systems safer and smoother without extra costs for most users.
2026-10376 — Regulation A: Extensions of Credit by Federal Reserve Banks
The Federal Reserve is proposing a rule that says if you have a special-purpose payment account, you can’t borrow money from the Fed’s discount window. This change won’t affect the usual borrowing programs or interest rates. If you want to share your thoughts, you have until July 27, 2026, to speak up!
2026-09891 — Notice of Proposals To Engage in or To Acquire Companies Engaged in Permissible Nonbanking Activities
Some companies want to start or buy businesses that do activities related to banking but aren’t banks themselves. The Federal Reserve is letting the public know and asking for comments by June 2, 2026. This helps keep banking safe and fair while allowing new business moves across the U.S.
2026-09890 — Change in Bank Control Notices; Acquisitions of Shares of a Bank or Bank Holding Company
If you want to buy or control shares in a bank or bank holding company, you need to tell the Federal Reserve first. They’re reviewing requests like the Mahar Family’s plan to keep control of their bank in North Dakota. If you want to share your thoughts, you’ve got until June 2, 2026, to speak up—so don’t miss the deadline!
2026-09806 — Change in Bank Control Notices; Acquisitions of Shares of a Bank or Bank Holding Company
Some families and trusts want to buy more shares in a bank and its holding company in Kansas. The Federal Reserve is checking their applications and wants the public to share thoughts by June 1, 2026. This process helps keep bank ownership clear and fair, making sure big money moves get a thumbs-up before they happen.
Previous / Next Documents
Previous: 2026-10376 — Regulation A: Extensions of Credit by Federal Reserve Banks
The Federal Reserve is proposing a rule that says if you have a special-purpose payment account, you can’t borrow money from the Fed’s discount window. This change won’t affect the usual borrowing programs or interest rates. If you want to share your thoughts, you have until July 27, 2026, to speak up!
Next: 2026-10379 — Schedules of Controlled Substances; Removal of Exemption Status for Inactive Butalbital Products
The DEA wants to remove certain inactive butalbital prescription products from their special exemption list because these products aren’t available anymore or the companies behind them are gone. This means these products will now be treated like controlled substances, not exempt ones. If you have thoughts, you’ve got until June 25, 2026, to speak up—no money changes for active products, just a cleanup of the list!