NBP Deposit Rate — What is the End-of-Day Deposit

What is the NBP Deposit Rate?

The deposit rate is the lowest of the main NBP interest rates. It determines the interest rate at which commercial banks can deposit surplus cash with NBP overnight.

How Does the End-of-Day Deposit Work?

1. A commercial bank has excess cash at the end of the day
2. Instead of keeping it unproductively, it deposits it with NBP
3. NBP accepts the deposit and pays interest at the deposit rate
4. The next day the bank retrieves the money with interest

This is the simplest and safest way to "park" money for a bank — but also the least profitable.

Why is the Deposit Rate Important?

Lower Limit for Market Rates

The deposit rate sets the floor for interest rates in the interbank market. No bank will lend money to another bank at a rate lower than what it can get from NBP — because it can always safely deposit it with the central bank.

Interest Rate Corridor

The three main rates create a corridor:

Deposit rate (floor)
     ↕
Reference/repo rate (middle)
     ↕
Lombard rate (ceiling)

Market rates (WIBOR, WIRON) move within this corridor.

Impact on Term Deposits and Savings Accounts

The deposit rate indirectly affects how much banks pay on term deposits. When the deposit rate is low, banks don't need to compete for customer deposits — and they offer lower interest rates.

Deposit Rate in Practice

Typically the deposit rate is 1-1.5 percentage points lower than the reference rate. For example, with a repo rate of 5.75%, the deposit rate is 5.25%.

When Do Banks Use the Deposit?

• At the end of the day when they have surplus after settlements
• During periods of uncertainty in the interbank market (they prefer NBP's safety)
• When they can't find a counterparty in the overnight market

How Freenance Can Help

Freenance helps track how NBP interest rates affect the interest rates on your term deposits and savings accounts — and whether it's worth looking for better offers.

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