<p>Not all deposits can be withdrawn at any time without penalty or notice. Consider, for example, CDs. Deposits that can be withdrawn at any time without delay or penalty (checking and deposit accounts but not savings accounts, which you’ll notice usually take a couple days to get your money from) are “overnight deposits” and are included in M1. Term deposits and savings accounts, etc., are added to M1 to calculate M2.</p>

CC BY-SA 4.0
2020-09-12T16:50:39.907Z
2020-09-12T16:50:39.907Z
dismalscience
<p>When considering <span class="math-container">$M_{0}$</span>, <span class="math-container">$M_{1}$</span> etc, there is something called &quot;overnight deposits&quot; which throws me off since one can withdraw money at any time from ones bank account and so what one has on ones account should not be considered overnight deposits?</p>
<p>Furthermore there is the overnight repo operations between banks which are HUGE amounts of money and collecting them into <span class="math-container">$M_{1}$</span> seems..not constructive...since the two things are completely different</p>
<p>So whats the deal here? what are overnight deposits in this context?</p>

CC BY-SA 4.0
2020-09-12T16:25:11.813Z
You should specify what country you are referring to. Different countries have different definitions. As for “overnight deposits,” it’s probably referring to wholesale lending.
Brian Romanchuk
CC BY-SA 4.0
2020-09-13T03:08:35.853Z
@Brian Romanchuk It is the US anf EU What is wholesale lending?
user123124
<money-supply>
Overnight deposits?
user123124
# Overnight deposits?

(Asked by: username_0 on 2020-09-12)

When considering $M\_{0}$, $M\_{1}$ etc, there is something called "overnight deposits" which throws me off since one can withdraw money at any time from ones bank account and so what one has on ones account should not be considered overnight deposits?

Furthermore there is the overnight repo operations between banks which are HUGE amounts of money and collecting them into $M\_{1}$ seems..not constructive...since the two things are completely different

So whats the deal here? what are overnight deposits in this context?

**Tags:** money-supply
> **Comments:**
> **username_1**: You should specify what country you are referring to. Different countries have different definitions. As for “overnight deposits,” it’s probably referring to wholesale lending.  
> **username_0**: @Brian Romanchuk It is the US anf EU What is wholesale lending?  

---

## 1 answers

### Answer by username_2 on 2020-09-12. Score: 3 | Accepted answer

Not all deposits can be withdrawn at any time without penalty or notice. Consider, for example, CDs. Deposits that can be withdrawn at any time without delay or penalty (checking and deposit accounts but not savings accounts, which you’ll notice usually take a couple days to get your money from) are “overnight deposits” and are included in M1. Term deposits and savings accounts, etc., are added to M1 to calculate M2.


---

