diff --git a/src/exchangedb/plugin_exchangedb_postgres.c b/src/exchangedb/plugin_exchangedb_postgres.c
index 505f493e5..e3da5216b 100644
--- a/src/exchangedb/plugin_exchangedb_postgres.c
+++ b/src/exchangedb/plugin_exchangedb_postgres.c
@@ -908,8 +908,8 @@ prepare_statements (struct PostgresClosure *pg)
       " out_balance_ok AS balance_ok"
       ",out_conflict AS conflict"
       " FROM exchange_do_purse_deposit"
-      " ($1,$2,$3,$4,$5,$6,$7,$8);",
-      8),
+      " ($1,$2,$3,$4,$5,$6,$7,$8,$9);",
+      9),
     /* Used in #postgres_update_aggregation_transient() */
     GNUNET_PQ_make_prepare (
       "set_purse_balance",
@@ -15875,6 +15875,7 @@ postgres_do_purse_deposit (
   bool *conflict)
 {
   struct PostgresClosure *pg = cls;
+  struct GNUNET_TIME_Timestamp reserve_expiration;
   uint64_t partner_id = 0; /* FIXME #7271: WAD support... */
   struct GNUNET_PQ_QueryParam params[] = {
     GNUNET_PQ_query_param_uint64 (&partner_id),
@@ -15883,6 +15884,7 @@ postgres_do_purse_deposit (
     GNUNET_PQ_query_param_auto_from_type (coin_pub),
     GNUNET_PQ_query_param_auto_from_type (coin_sig),
     TALER_PQ_query_param_amount (amount_minus_fee),
+    GNUNET_PQ_query_param_timestamp (&reserve_expiration),
     GNUNET_PQ_query_param_end
   };
   struct GNUNET_PQ_ResultSpec rs[] = {
@@ -15893,6 +15895,10 @@ postgres_do_purse_deposit (
     GNUNET_PQ_result_spec_end
   };
 
+  reserve_expiration
+    = GNUNET_TIME_absolute_to_timestamp (
+        GNUNET_TIME_absolute_add (GNUNET_TIME_absolute_get (),
+                                  pg->legal_reserve_expiration_time));
   return GNUNET_PQ_eval_prepared_singleton_select (pg->conn,
                                                    "call_purse_deposit",
                                                    params,
diff --git a/src/exchangedb/procedures.sql b/src/exchangedb/procedures.sql
index 38f346c01..1940fa7b8 100644
--- a/src/exchangedb/procedures.sql
+++ b/src/exchangedb/procedures.sql
@@ -1427,6 +1427,7 @@ CREATE OR REPLACE FUNCTION exchange_do_purse_deposit(
   IN in_coin_sig BYTEA,
   IN in_amount_without_fee_val INT8,
   IN in_amount_without_fee_frac INT4,
+  IN in_reserve_expiration INT8,
   OUT out_balance_ok BOOLEAN,
   OUT out_conflict BOOLEAN)
 LANGUAGE plpgsql
@@ -1569,21 +1570,41 @@ THEN
    WHERE purse_pub=in_purse_pub;
 ELSE
   -- This is a local reserve, update balance immediately.
-  UPDATE reserves
-  SET
-    current_balance_frac=current_balance_frac+my_amount_frac
-       - CASE
-         WHEN current_balance_frac + my_amount_frac >= 100000000
-         THEN 100000000
-         ELSE 0
-         END,
-    current_balance_val=current_balance_val+my_amount_val
-       + CASE
-         WHEN current_balance_frac + my_amount_frac >= 100000000
-         THEN 1
-         ELSE 0
-         END
-  WHERE reserve_pub=my_reserve_pub;
+  INSERT INTO reserves
+    (reserve_pub
+    ,current_balance_frac
+    ,current_balance_val
+    ,expiration_date
+    ,gc_date)
+  VALUES
+    (my_reserve_pub
+    ,my_amount_frac
+    ,my_amount_val
+    ,in_reserve_expiration
+    ,in_reserve_expiration)
+  ON CONFLICT DO NOTHING;
+
+  IF NOT FOUND
+  THEN
+
+    UPDATE reserves
+      SET
+       current_balance_frac=current_balance_frac+my_amount_frac
+        - CASE
+          WHEN current_balance_frac + my_amount_frac >= 100000000
+            THEN 100000000
+          ELSE 0
+          END
+      ,current_balance_val=current_balance_val+my_amount_val
+        + CASE
+          WHEN current_balance_frac + my_amount_frac >= 100000000
+            THEN 1
+          ELSE 0
+          END
+      ,expiration_date=GREATEST(expiration_date,in_reserve_expiration)
+      ,gc_date=GREATEST(gc_date,in_reserve_expiration)
+      WHERE reserve_pub=my_reserve_pub;
+  END IF;
 
   -- ... and mark purse as finished.
   -- FIXME: combine with UPDATE above?