Clearing Balance and Excess Reserve Compensation Calculator

This calculator allows users to calculate expected compensation from contracted clearing balances and compare expected compensation between clearing balances and excess reserve balances.

Instructions: Provide a value for contractual clearing balances, the clearing balance earnings credit rate, and the excess reserve balances rate in the blue boxes.  Then press ‘Calculate’.

NOTE: Javascript needs to be enabled for the Clearing Balance Calculator to work.

* Required Fields

Proposed balance and interest rates
Contractual clearing balance *
Note: Do not enter "," or "$".		 $
Earnings credit rate for clearing balances
Recent Rates (PDF) *
Enter in decimal format. EX: 1.31% = .0131
Interest rate for excess reserve balances
Recent Rates (Off-site Link) *
Enter in decimal format. EX: 1.31% = .0131
 

Compensation earned
Earnings credits generated over 4 weeks: $
OR
If the contracted clearing balances were instead allocated as excess reserve balances, $ would be earned in interest.

Compensation for other periods
Time Period Earnings credits earned on clearing balances Interest earned on excess reserve balances
8 weeks $ or $
26 weeks $ or $
52 weeks $ or $

Note:  The calculations above assumes the Earnings credit and Interest on excess reserve balances rates remain constant.

 

This calculator is for illustrative purposes only. The effects of carry-over and clearing balance band provisions are not incorporated in this calculator. Further, interest earned on excess reserves is not compounded by this calculator.

If you would like to change your contractual clearing balance level once you have completed the calculator, please complete the Clearing Balance Request form (PDF) and fax or mail your request to your local Reserve Bank.

For additional information about clearing balances and earnings credits, please refer to Sections III and VIII of the Reserve Maintenance Manual (PDF).

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