Question

If interest rates earned by Banks an all of their assets fell close to zero. why might all bank customers have to pay interest fees on deposits they hold with banks?

Short answer

When a bank fails, the Federal Deposit Insurance Corporation is in charge of collecting and selling the bank's assets as well as settling the bank's debts.

Step-by-step solution

Introduction.

Deposit account customers receive interest on their deposits from financial institutions. Deposit accounts are preferred by investors because they are a safe place to save money, earn a small amount of fixed interest, and have insurance.

Banks and all of their assets were nearly worthless.

When a bank fails, the FDIC is responsible for collecting and selling the bank's assets as well as settling its debts. If your bank fails, the Federal Deposit Insurance Corporation (FDIC) will usually repay your protected deposits the next working day.