As Dodd-Frank regulations took effect this past week, the New York Times reports that some major banks have quietly begun taking advantage of the lifted ban on interest fees for business checking accounts.
“Large companies with big deposits have long been able to get around the prohibition by using so-called sweep accounts, which invest deposits in money market accounts each night and then return the funds the next day. Sweep accounts, however, are an inefficient and expensive way to earn interest,” explained the newspaper. “Effective Thursday, with the repeal of what was once “” long ago “” called Regulation Q, several large banks will begin to offer interest-bearing checking accounts to all business customers.”
These FIs include Capital One, Citibank, TD Bank, Wells Fargo and Regions Bank, according to the New York Times, who adds the two largest U.S. banks (Bank of America and Chase) have yet to reach a decision.
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