Financial Terms Glossary
The most important financial terms - with simple and concise explanations.
Overnight deposit
An overnight deposit is a short-term savings account without a fixed term. The investment is linked to a variable interest rate meaning the bank may raise or lower the interest rate at any time, in response to shifts in the financial market. The interest return is geared to the market interest rate, amongst, which allows the return on the deposit to fluctuate with the current economic environment. This provides a dynamic earning potential that is not locked in for a set period. Overnight deposits offer high liquidity as funds can be withdrawn from the account at any time.
