Interest rate for overnight deposits
Overnight deposits (also referred to as sight or demand deposits) are deposits with next-day maturity. They comprise deposits that are fully transferable as well as nontransferable deposits that are convertible on demand or by close of business the following day. Together with currency in circulation, overnight deposits make up the monetary aggregate M1, a very relevant economic metric that captures the most liquid, readily convertible portion of the money supply. The more broadly defined monetary aggregates M2 and M3 additionally comprise instruments that are less liquid than M1 given longer maturity periods.