Deposit Facility Rate — ECB rate banks earn on reserves
Medium-length body copy of one or two sentences goes here to support the main headline. Do not make your text longer than this.
Deposit Facility Rate — ECB rate banks earn on reserves
Medium-length body copy of one or two sentences goes here to support the main headline. Do not make your text longer than this.
Deposit Facility Rate — ECB rate banks earn on reserves
Medium-length body copy of one or two sentences goes here to support the main headline. Do not make your text longer than this.
Table of contents
The deposit facility rate is what banks earn when they park excess reserves overnight at the ECB. It is the floor of the ECB's interest rate corridor and strongly influences short-term money market rates.
When this rate is negative, banks pay to leave money at the central bank, which encourages lending instead of hoarding cash. When it is positive, banks earn a return on idle reserves.
Why it matters for savers
Banks fund customer deposits partly through reserves and market borrowing. The deposit facility rate affects their margin and therefore the rates they offer on Savings Accounts. It often moves in tandem with the refinancing rate during ECB decisions.
Track ECB meetings if you want to anticipate changes to your savings yield. For a rate locked regardless of the next ECB move, consider a Term Deposit.
Table of contents
The deposit facility rate is what banks earn when they park excess reserves overnight at the ECB. It is the floor of the ECB's interest rate corridor and strongly influences short-term money market rates.
When this rate is negative, banks pay to leave money at the central bank, which encourages lending instead of hoarding cash. When it is positive, banks earn a return on idle reserves.
Why it matters for savers
Banks fund customer deposits partly through reserves and market borrowing. The deposit facility rate affects their margin and therefore the rates they offer on Savings Accounts. It often moves in tandem with the refinancing rate during ECB decisions.
Track ECB meetings if you want to anticipate changes to your savings yield. For a rate locked regardless of the next ECB move, consider a Term Deposit.
Table of contents
The deposit facility rate is what banks earn when they park excess reserves overnight at the ECB. It is the floor of the ECB's interest rate corridor and strongly influences short-term money market rates.
When this rate is negative, banks pay to leave money at the central bank, which encourages lending instead of hoarding cash. When it is positive, banks earn a return on idle reserves.
Why it matters for savers
Banks fund customer deposits partly through reserves and market borrowing. The deposit facility rate affects their margin and therefore the rates they offer on Savings Accounts. It often moves in tandem with the refinancing rate during ECB decisions.
Track ECB meetings if you want to anticipate changes to your savings yield. For a rate locked regardless of the next ECB move, consider a Term Deposit.