I think you may be confusing Fed Funds with Interest on Reserves. Fed Funds are unsecured overnight loans between banks. In the aftermath of 2008, banks have

I think you may be confusing Fed Funds with Interest on Reserves. Fed Funds are unsecured overnight loans between banks. In the aftermath of 2008, banks have a lot of reserves and trading volume in the Fed Funds market has decreased significantly. It's arguably not an important rate to pay attention to anymore, but the Fed still claims to be targeting it (indirectly through open market operations) Interest on Reserves is interest paid by the Fed to banks for holding reserves at the Fed. This is a new thing that was implemented in the wake of the 2008 crisis and quantitative easing.