US Interest Rate on Reserve Balances (IORB)
US Interest Rate on Reserve Balances (IORB) stood at 3.9% on Oct 19, 2026, according to FRED (Federal Reserve Bank of St. Louis). It is one of the indicators in the FED interest rates table (Value · Daily), with a complete series running from Jul 29, 2021 to Oct 19, 2026. The complete series with an interactive chart, free to download.
This indicator in the FED interest rates table
| Indicator | 19-10-2026 | 18-10-2026 | 17-10-2026 | 16-10-2026 | 15-10-2026 | 14-10-2026 | 13-10-2026 | 12-10-2026 | 11-10-2026 | 10-10-2026 | |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest rate on reserve balances (IORB) | 3.9 | 3.9 | 3.9 | 3.9 | 3.9 | 3.9 | 3.9 | 3.9 | 3.9 | 3.9 | |
| Target interest rate - upper bound | 4 | 4 | 4 | 4 | 4 | 4 | 4 | 4 | 4 | ||
| Target interest rate - lower bound | 3.75 | 3.75 | 3.75 | 3.75 | 3.75 | 3.75 | 3.75 | 3.75 | 3.75 |
Understanding US Interest Rate on Reserve Balances (IORB)
The policy interest rate in the United States represents the interest rate paid on eligible reserve balances maintained by depository institutions, as published by the Federal Reserve. This is a policy-determined rate rather than one formed through market transactions between participants. It differs from the effective federal funds rate because the latter measures actual overnight reserve borrowing costs, and it differs from the target floor because it represents the payment on a specific category of balances rather than the announced lower boundary of the corridor. The indicator is also distinct from retail deposit rates offered to households.
This series is typically read by effective date: a change between two consecutive days carries greater significance than a value repeating over an extended period. Year-on-year comparisons are not particularly useful because the interest rate on reserve balances follows policy decisions rather than economic seasonality. The spread between this rate and the effective federal funds rate helps observe the incentive to allocate capital between holding reserves and lending overnight, but not all market participants have access to earn this rate. Because of these access differences, the effective federal funds rate can trade below this rate without creating a completely risk-free arbitrage opportunity.
Frequently asked questions
- Is IORB the interest rate banks pay to depositors?
- No. This rate applies to eligible reserve balances, not retail deposits.
- Why can EFFR be lower than IORB?
- Not all market lenders receive interest on reserves or have the same access.
- How should IORB be used to read the policy stance?
- Review changes by effective date and compare them against the target corridor and actual transaction interest rates.