Rate hikes by the U.S. Federal Reserve have compelled companies like Schwab to increase the interest they pay on deposits - a crucial source of capital that is used to invest in interest-earning assets and give out loans. Schwab has also taken on debt to bolster its funding, which hit interest revenue further. The interest rate on its borrowings from the Federal Home Loan Bank was 5.27%, compared with 5.05% a year ago. Read this story