The bank put the rise partly down to higher customer numbers and earning more income from sources other than interest on deposits.
It operates according to the tenets of the Koran and Sharia law, which prohibit charging interest on loans and paying interest on deposits.
BofA has such scope that it can get away with paying lower interest on deposits, often 0.75 of a percentage point less than peers, says Bankrate.com.
During the recent lockout Lacob and Guber enticed season ticket buyers by promising 5% interest on deposits if the lockout wiped out the season and a guaranteed renewal for next season at no increase if the team failed to make the playoffs.
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Or to put it another way, the interest received on the mortgage book is dwarfed by all the other costs, including interest paid on deposits.
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Further, currency controls promoted by Chavez also allowed near-zero interest rates on deposits to banks.
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Now, the IRS wants to require U.S. banks to report interest paid on deposits held by nonresident aliens too.
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Until now it has not paid interest on those deposits, which means banks lend their excess reserves to other banks.
Low or negative real interest rates on deposits, including saving accounts, provides a low-cost source of funding for state-owned banks.
The orange line shows that real interest rates on deposits, in the advanced countries, were significantly negative throughout most of the post-war boom.
Its pressure may have swayed Hong Kong's banks to phase out fixed interest rates on deposits, and stockbrokers to end their cartel in commissions.
The Conservatives' proposal essentially removes this limit and extends the tax privilege to all lower-rate and basic-rate income-tax payers who receive interest on their deposits.
When money is collected by the bank it is first paid out to those in the upper tranches, usually as fixed-interest payments on deposits or bonds.
Bank branches that have above-average deposits also tend to make above-average profits, and they can often get away with offering less attractive interest rates on deposits and loans without losing market share, according to Novantas.
He said the tax would only be as much as the interest collected on deposits over two years and stressed that it would only happen once because it would ensure the bailout wouldn't push the country's debt to unsustainable levels.
China will also push ahead with an easing of restrictions on interest rates on loans and deposits.
The Fed s likely ease will involve zero interest on excess reserves: Since October 2008 the Fed has been paying interest on commercial bank deposits held at the central bank.
To deter such speculation, Chinese banks on Thursday raised the interest they pay on dollar deposits.
Banks should make sure that they are offering very low interest rates on time deposits.
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Following this month s meeting, the FOMC is unlikely to indicate that the Fed will stop paying interest on commercial bank deposits.
Savers are grumbling about the sharp fall in interest rates on their deposits and the Conservative opposition has pledged tax concessions to help them.
Wells Fargo has to pay lower interest rates on its core deposits as compared to long term debt and short term borrowings.
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The Fed would earn 25 basis points on the deposits (by avoiding interest payments on bank reserves), although the FDIC would lose 20 basis points of deposit insurance premiums.
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As the bank incurs an interest expense on its deposit base, more deposits mean lower net interest margins.
Banks now get a 25 basis point interest rate return on their reserve deposits with Federal Reserve Banks, including their excess reserves.
That is far higher than the 1% in annual interest investors are earning on bank deposits and money-market accounts, or the 2% they are earning on 10-year Treasurys.
In addition to injecting money into banks, the government will guarantee new debt issued by banks for three years, and will offer an unlimited guarantee on non-interest-bearing deposits such as those used by businesses to make payroll.
The government told banks what interest rates they were allowed to pay on deposits.
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