Skip to main content
S. 1586 109th Congress Senate

Interest on Business Checking Act of 2005

Official title: A bill to allow all businesses to make up to 24 transfers each month from interest-bearing transaction accounts to other transaction accounts, to require the p… Show full official titleShow less

Official title: A bill to allow all businesses to make up to 24 transfers each month from interest-bearing transaction accounts to other transaction accounts, to require the payment of interest on reserves held for depository institutions at Federal reserve banks, to repeal the prohibition of interest on business accounts, and for other purposes.

Introduced: July 29, 2005 See on congress.gov
Finance and Financial Sector Administrative procedureBank accountsBank depositsChecks
More subjectsShow fewer subjects
CommerceDividendsElectronic funds transfersFederal Reserve SystemHousing and Community DevelopmentInterestInterest ratesLawNOW accountsScience, Technology, CommunicationsSettlement costsTrusts and trustees
Sign in to write a letter Sign in to watch
This bill died when the 109th Congress ended
It never became law before the 109th Congress (2005–2006) adjourned, and bills don't carry over to the next Congress. It would have to be reintroduced. You can still save it for reference, but it won't receive updates.
 Everywhere this bill has been 2 steps
Introduced
In committee
Reported out
Passed House
Passed Senate
To President
Became law
Jul 29, 2005
Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.
Jul 29, 2005
Introduced in Senate
 Ask about this bill AI · grounded in the bill text

Have a question about what this bill does? Ask in plain English; the answer is drawn from the bill's actual text and official record, and it'll tell you when something isn't in the text rather than guess.

AI answers can be imperfect; always confirm against the full bill text.

 Latest action July 29, 2005

Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.

 Plain-English summary Congressional Research Service

Interest on Business Checking Act of 2005 - Amends Federal law to authorize interest-bearing transaction accounts for all businesses, permitting up to 24 transfers per month to another account of the owner in the same institution (or any greater number the Federal Reserve Board may determine).

Amends the Federal Reserve Act, the Home Owners' Loan Act, and the Federal Deposit Insurance Act to repeal the prohibition against the payment of interest on demand deposits.

Requires a joint rulemaking by the federal banking agencies authorizing the payment of interest and dividends on transaction accounts at depository institutions under their respective jurisdictions.

Amends the Federal Reserve Act to authorize the payment of interest at least quarterly by a federal reserve bank on reserves maintained there on behalf of a depository institution.

Revises the ratio of reserves a depository institution must maintain against its transaction accounts, permitting a ratio of zero.

States that, where escrow accounts are maintained at a depository institution for completion of a real estate settlement transaction, specified expense-taking or fee-waiving activities shall not be treated as the payment or receipt of interest for purposes relating to the payment of interest on accounts or deposits maintained at depository institutions.

 Bill text 1 version

Source documents hosted by congress.gov.

 Committees of jurisdiction 1
 Cosponsors 1
All 1 Democratic 1
D
Reed, Jack
Rhode Island · Jul 29, 2005
Cite this page click to expand
APA
U.S. Congress. (2026). S. 1586: Interest on Business Checking Act of 2005. 109th Congress. Open America. https://openamerica.io/bill/109-S-1586/
MLA
"S. 1586: Interest on Business Checking Act of 2005." 109th Congress, 2026, Open America, https://openamerica.io/bill/109-S-1586/.
Bluebook (legal)
S. 1586, 109th Cong. (2026), https://openamerica.io/bill/109-S-1586/.
Markdown link
[S. 1586: Interest on Business Checking Act of 2005](https://openamerica.io/bill/109-S-1586/)
Report a problem