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deposits redeemable at notice

Financial DictionaryEuropean Central Bank Dictionary
Savings deposits for which the holder must respect a fixed period of notice before withdrawing the funds. In some cases there is the possibility of withdrawing on demand a certain fixed amount in a specified period or of early withdrawal subject to the payment of a penalty. Deposits redeemable at a period of notice of up to three months are included in M2 (and hence in M3), while those with a longer period of notice are part of the (non-monetary) longer-term financial liabilities of the MFI sector.
Copyright © 2006, European Central Bank, Frankfurt am Main, Germany. This information may be obtained free of charge through the ECB's website.


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