As there is no competition for IRA savings deposits little or no interest is paid to attract IRA dollars. This is the result of the government giving banks free money. This strategy by the FED keeps the interest paid to individuals by banks artificially low.
The current alternative for the individual is to chase higher returns in the risky bond and stock markets. This is not a sensible alternative when you are retired and need to lower risk exposure to ensure income stability in old age.
By requiring minimum interest on IRA accounts the banks would support incentive for long-term savings efforts by Americans. The money would come back to the economy through the dispositon of IRA funds under the Required Annual Minimum Distribution provision of IRAs after the age of 65.