High rates are currently maintained via the reverse repo facility which allows you to park your money at the Fed with high interest.
Usually only bank and other primary dealers can have an account at the Fed but the reverse repo facility allows money markets (and thus anyone) to basically passthrough to the Fed.
Given the high interest yield offered and the fact that the Fed by definition cannot go bust, there is no reason to put your money at a small bank due to the risk and low reward.
Usually only bank and other primary dealers can have an account at the Fed but the reverse repo facility allows money markets (and thus anyone) to basically passthrough to the Fed.
Given the high interest yield offered and the fact that the Fed by definition cannot go bust, there is no reason to put your money at a small bank due to the risk and low reward.