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Fixed-term deposit
Sparenab 13 J.
An investment with a fixed interest rate and fixed term. Higher interest than an instant-access savings account, but the money isn't available during the term.
With a Festgeld (fixed-term deposit) you deposit an amount with a bank for a fixed term – typically 6, 12, 24 or 36 months. In return you get a guaranteed, fixed interest rate that is higher than for overnight money.
The downside: you can't access your money during the term. That's why a fixed-term deposit is only suitable for amounts you definitely won't need.
Example: €5,000 for 12 months at 3.2% interest = €160 interest. With overnight money at 2.0% it would only be €100. The difference is worthwhile above all for larger amounts and longer terms.
Did you know? Just like instant-access savings, fixed-term deposits are protected up to €100,000 by EU deposit protection – including at foreign banks within the EU.
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