U.S. banks earned an estimated $1 trillion in excess interest revenue during the Federal Reserve’s two-and-a-half-year period of elevated interest rates, an analysis of official data by the Financial Times shows.

Lenders reportedly benefited from higher yields on deposits held at the Fed while paying relatively low rates to many savers — boosting profit margins across the country’s more than 4,000 banks.

At the end of the second quarter, the average U.S. bank paid depositors an annual interest rate of 2.2%, according to Federal Deposit Insurance Corporation data.

This is higher than the 0.2% rate two years ago but well below the details ⇒

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