We are independent & ad-supported. We may earn a commission for purchases made through our links.

Advertiser Disclosure

Our website is an independent, advertising-supported platform. We provide our content free of charge to our readers, and to keep it that way, we rely on revenue generated through advertisements and affiliate partnerships. This means that when you click on certain links on our site and make a purchase, we may earn a commission. Learn more.

How We Make Money

We sustain our operations through affiliate commissions and advertising. If you click on an affiliate link and make a purchase, we may receive a commission from the merchant at no additional cost to you. We also display advertisements on our website, which help generate revenue to support our work and keep our content free for readers. Our editorial team operates independently from our advertising and affiliate partnerships to ensure that our content remains unbiased and focused on providing you with the best information and recommendations based on thorough research and honest evaluations. To remain transparent, we’ve provided a list of our current affiliate partners here.

What is a Euro Deposit?

By Andrew Burger
Updated May 16, 2024
Our promise to you
SmartCapitalMind is dedicated to creating trustworthy, high-quality content that always prioritizes transparency, integrity, and inclusivity above all else. Our ensure that our content creation and review process includes rigorous fact-checking, evidence-based, and continual updates to ensure accuracy and reliability.

Our Promise to you

Founded in 2002, our company has been a trusted resource for readers seeking informative and engaging content. Our dedication to quality remains unwavering—and will never change. We follow a strict editorial policy, ensuring that our content is authored by highly qualified professionals and edited by subject matter experts. This guarantees that everything we publish is objective, accurate, and trustworthy.

Over the years, we've refined our approach to cover a wide range of topics, providing readers with reliable and practical advice to enhance their knowledge and skills. That's why millions of readers turn to us each year. Join us in celebrating the joy of learning, guided by standards you can trust.

Editorial Standards

At SmartCapitalMind, we are committed to creating content that you can trust. Our editorial process is designed to ensure that every piece of content we publish is accurate, reliable, and informative.

Our team of experienced writers and editors follows a strict set of guidelines to ensure the highest quality content. We conduct thorough research, fact-check all information, and rely on credible sources to back up our claims. Our content is reviewed by subject matter experts to ensure accuracy and clarity.

We believe in transparency and maintain editorial independence from our advertisers. Our team does not receive direct compensation from advertisers, allowing us to create unbiased content that prioritizes your interests.

There are two distinct types of euro deposit. The older of the two refers to a deposit of foreign currency into a bank account outside the currency's home country; the deposit of U.S. dollars into a bank account in London is one example. Since the 1999 introduction of the euro currency, a euro deposit may also refer to a deposit of euros into a bank, typically in a European Monetary System (EMS) member country, but not necessarily so; a growing number of banks around the world offer deposit accounts in a range of currencies, the euro prominent among them. Both types are usually made for fixed terms, though this can range from one day — typically made only by corporations, large investment firms, and other banks — to one year or more. Interest rates on both types of euro deposits may be fixed for the term of the deposit, or floating, meaning the rate will be reset periodically over the deposit's term.

The origin of the older of the two types of euro deposit dates back to the post-World War II era, when dollars began to accumulate in European banks primarily as a result of the Marshall Plan. Overseas holdings of U.S. dollars subsequently grew rapidly in other regions, such as the the Arabian Gulf countries and Japan, as the dollar became the currency of international trade and finance and the U.S. began to run trade and current account deficits. London became the international financial center for what became known as the eurodollar market. With the sustained growth of global trade, this market grew tremendously, expanding to include "offshore" deposits of all the major currencies, including holdings of Japanese yen, known as euroyen; prior to the introduction of the euro, this included offshore deposits and securities of all the major European currencies.

The second, more recent, type of euro deposit is simply a deposit of euros into a bank, which may be a member of the EMS or outside it, typically for a fixed term. Rates on euro deposits over a range of standard terms are set daily by the European Central Bank. These are known as Euro Interbank Offer Rates, Euribor for short. To the degree that the euro appreciates, or strengthens, against their home currency, investors and savers from the U.S. and other countries outside the EMS stand to gain by making a euro deposit as the euro will be worth more of their home currency when the term of their deposit ends.

SmartCapitalMind is dedicated to providing accurate and trustworthy information. We carefully select reputable sources and employ a rigorous fact-checking process to maintain the highest standards. To learn more about our commitment to accuracy, read our editorial process.

Discussion Comments

SmartCapitalMind, in your inbox

Our latest articles, guides, and more, delivered daily.

SmartCapitalMind, in your inbox

Our latest articles, guides, and more, delivered daily.