The euro area deposit facility rate is one of the three important key interest rates from the European Central Bank. It is the interest rate for the eponymous deposit facility. Commercial banks in the euro area can deposit money with the European Central Bank on a short-term basis (until the next business day). The interest rate they receive from the ECB for this invested money is called the deposit facility rate. This is usually short-term money that is not needed by the commercial banks at that time. Because of that, the term “parking the cash” is often used in this context. Banks increasingly deposit their money with the ECB via the deposit facility in uncertain times and due to a lack of investment opportunities. The deposit facility rate is the lower limit for the call money rate on the money market. Moreover, the deposit facility rate is always lower than the main refinancing operations rate. Alongside the marginal lending facility rate and the main refinancing operations rate, the deposit facility rate is the ECB’s most important monetary policy instrument for influencing liquidity and interest rates on the money market in the euro area.