Fixed-term Deposits

Fixed-term Deposits are among the Safest and most Sought-After Investment Options

Security and popularity go hand in hand when it comes to investments. Fixed-term deposits are a trustworthy option to protect and grow your capital. With this established form of investment, you invest your money for a fixed period at a fixed interest rate. We are pleased to introduce you to the best banks with exclusive special conditions for fixed-term deposits. Our careful selection includes first-class financial institutions that offer attractive interest rates, flexible terms, and additional benefits. Your financial security is important to us, and we want to support you in achieving your investment goals. With our recommendations, you invest in a future based on stable financial foundations. Discover the advantages of fixed-term deposits and the best banks with special conditions – your financial stability starts here.

Top Fixed-Term Deposit Comparison:

Current fixed-term deposit comparison presenting the best conditions at a glance.
Possibility to invest in fixed-term deposits at different banks through a single account.
No fees for account opening and account management.
Fast and straightforward online identification using the video identification process.

Smart Investment Opportunities for Every Goal

Maximize your return with the right investment solutions – from secure fixed-interest investments to flexible ETFs.

Corporate Fixed-term Deposits

Corporate fixed deposits offer companies security, fixed interest income, easy management, and good predictability. It’s a low-risk, liquid, and tax-advantaged investment option for surplus funds.

Flexible Deposits

Take advantage of a short-term investment that offers favorable interest yields and grants you unrestricted access to your capital. This flexible option allows you to save securely while being able to access your money at any time.

Fixed-interest Investments

ETFs are ideal for long-term investors who want to save monthly. They are particularly suitable for beginners and small investors, as investing is simple and less dependent on timing. An ETF savings plan allows for wealth accumulation with small amounts.

Fixed-term Deposits

Fixed-term deposits are a secure form of investment where an amount is invested for a fixed term at a guaranteed interest rate. It offers a predictable return and protects against market fluctuations. After the term expires, the capital is repaid together with the interest.

Frequently Asked Questions

What is Flexgled?

Fixed-term deposits are a special form of bank deposit where the customer and bank agree on a fixed term and a fixed interest rate. As the investment conditions are already set at the time of conclusion, fixed-term deposits offer a predictable and secure investment that is not affected by market fluctuations. Additionally, fixed-term deposits are protected by uniform deposit guarantee systems in the EU, even in the event of bank insolvency. Generally, higher interest rates apply for longer terms, as the bank can plan with the deposits for the entire duration. During the term, access to the deposits is usually not possible; after expiry, the investment can be extended, changed, or paid out to a reference account under the offered conditions. For deposits over 100,000 euros, our customers benefit from a voluntary deposit protection, which offers additional protection beyond the legal safeguards. Our advisors are available for any further questions.

How High are the Interest Rates for Fixed-Term Deposits?

Generally, savers receive significantly higher interest rates with fixed-term deposits compared to other secure investments, as the interest rate typically increases with the duration of the investment horizon. Many banks in Europe offer fixed-term deposit rates that are significantly higher than those of most German local banks. At AGw, you’ll find a wide selection of such attractive offers in the fixed-term deposit comparison.

Achieve Even Better Returns through the Ladder Strategy

For medium to long-term fixed-term deposits, interest rates are generally higher than for overnight deposits and short-term fixed deposit periods. The consumer organization Stiftung Warentest recommends the ladder strategy for savers who aim for the highest possible interest rate on fixed-term investments without having to tie up their entire assets for the maximum term. This investment strategy often allows for a higher return while keeping the fixed-term deposit relatively accessible. The staggered investment strategy involves investing money in equal portions with different terms. Terms of one to five years are recommended. For example, an investment sum of 25,000 euros could be invested in five tranches of 5,000 euros each for 1, 2, 3, 4, and 5 years. As soon as the first fixed-term deposit expires after one year, the amount is reinvested for another 5 years at the highest interest rate. This process is repeated annually with each maturing investment.

Choosing the Right Term for Fixed-Term Deposits

The fixed-term deposit period refers to the timeframe during which savers invest their money with a bank. During this time, they generally cannot access the invested amount. The bank transfers the total amount, including interest, back to the reference account only at the end of the term. However, savers have the option to extend their investment or switch to other investment products.

The terms for fixed-term deposits range from a few months to ten years. A fixed-term deposit with a term of up to one year is considered a short-term investment, while deposits of up to five years are considered medium-term. Anything beyond that is considered long-term fixed-term deposit. The choice of term depends heavily on personal savings goals. Fixed-term deposits with terms of three to ten years can be particularly attractive for investors who can do without part of their savings for longer, as banks usually offer higher interest rates for longer terms. However, those who want to remain flexible and not tie up their savings for too long should focus on fixed-term deposits with short to medium-term durations of no more than two years. Although interest returns are generally lower during these periods, the money becomes available again more quickly.

Who Benefits from a Fixed-Term Deposit Account?

A fixed-term deposit account is ideal for savers who want to invest their money profitably and securely over a fixed period. The interest rates on fixed-term deposit accounts remain stable throughout the entire term and are thus independent of interest rate fluctuations. Therefore, investors who do not need their savings for a longer period should consider attractive fixed-term deposit offers. With a fixed-term deposit account comparison, savers can select the best options from a variety of products.

Investing in Fixed-Term Deposits through AGw

In the past, saving with local banks was simple: one could safely deposit funds in a savings account and earn interest. But in the current low-interest phase, many savers wonder where they can still find acceptable interest rates. To solve this problem, a new department was established in 2022, offering German investors direct access to attractive fixed-term deposit accounts from European banks.

Investing in fixed-term deposits with a European bank is as uncomplicated as with your own local bank. The banks benefit from savings as they don’t have to maintain their own branches, which allows us to offer higher interest rates. Through AGw, savers can still find profitable investment opportunities, as our German interest rate portal presents fixed-term deposits from all over Europe. Our service is free of charge for you, as the financing is done through commissions from banks for brokered deposits. The account or fixed-term deposit with our partner banks is also free of charge.

Transfer Money for Investment

Fixed-term deposits remain very popular among German savers, as the interest rates are fixed for the entire term and the deposits are protected by EU-wide deposit guarantee. However, investors should carefully consider which bank they invest their money with. There are some indicators that point to a bank’s security. For example, a trustworthy bank is a member of the national deposit guarantee fund of its home country, which means that deposits up to 100,000 euros per customer and bank are secured. In addition, many banks participate in private deposit protection systems, which often offer protection beyond the legally required limit. An example of this is the private fund of the Association of German Banks (BdB).

How Safe is a Fixed-Term Deposit?

When you transfer the desired amount to your fixed-term deposit account, the credit is usually processed within 1-2 banking days, after which your fixed-term deposit begins. An EU-wide harmonized deposit guarantee protects the funds invested with partner banks up to an amount of 100,000 euros per investor and bank. Sweden increased the protection of customer deposits in January 2021: deposits are secured by the Swedish deposit guarantee Riksgälden up to 1.05 million Swedish kronor per bank and saver. This corresponds to about 91,617 € depending on the exchange rate. For banks in the United Kingdom, the security limit is 85,000 British pounds, which is about 102,000 euros.

European Deposit Guarantee for the Fixed-Term Deposit Account

Some investors fear that a fixed-term deposit account with a foreign bank carries a higher risk than with a German credit institution. It is important to note that in Europe, uniform standards for deposit protection apply that go beyond personal gut feelings. These systems ensure a swift reimbursement of your fixed-term deposit should a foreign bank encounter financial difficulties. The deposit protection rules established by the European Union are applicable in all member states and offer protection for savers’ fixed-term deposits. Deposits are protected up to a maximum amount of 100,000 euros (85,000 GBP in England and 1.05 million SEK in Sweden) per customer and bank throughout the entire term by the EU-harmonized deposit guarantee scheme. Directives 2009/14/EC and 2014/49/EU are binding for all member states and have been implemented into uniform national laws.