Fixed-term deposit vs. instant-access savings

The two most popular savings products compared directly.

Current interest rates (2025/2026):

• Overnight money (best offers): 2.5–3.4% (new-customer offers up to 3.4% for 3–4 months)
• Overnight money (permanent): 2.0–2.5%
• Fixed-term deposit 12 months: 2.5–2.7%
• Fixed-term deposit 24 months: 2.6–2.9%

The big comparison:

Overnight money:

✅ Available daily (emergency fund!)
✅ No risk (deposit protection €100,000)
✅ New-customer offers often higher than fixed-term deposits
❌ The rate can fall at any time
❌ "Overnight money hopping" needed for the best rates

Fixed-term deposit:

✅ Rate guaranteed for the entire term
✅ Protects against falling rates (ECB rate cuts!)
❌ Money locked – no access until the end of the term
❌ If rates rise, you're stuck with the lower rate

Recommended strategy:

• Emergency fund (3–6 months): always in overnight money (liquidity!)
• Money you won't need for 1–3 years: fixed-term deposit (lock in the rate)
• Fixed-term deposit ladder: spread amounts over 1, 2, 3 years – part becomes available each year
• Long term (3 years): ETF savings plan (much higher return)

Current special situation 2025/2026:

The ECB is cutting key interest rates – a fixed-term deposit can be worthwhile to "freeze" the current rate before it falls further.