Fixed-term deposit ladder

The fixed-term deposit ladder (Festgeldleiter) is a strategy for optimally spreading fixed-term deposits across different terms.

Example with €30,000:

• €10,000 fixed for 1 year (e.g. 3.0% interest)
• €10,000 fixed for 2 years (e.g. 3.3% interest)
• €10,000 fixed for 3 years (e.g. 3.5% interest)

Advantage: part of the money becomes available every year. You can reinvest it (at the then current rate), use it or invest it. That way you're never completely tied up and still benefit from higher long-term rates.

Ideal for: the part of your money that goes beyond your emergency fund and that you'll need in 1–5 years (e.g. for buying a car, a wedding, equity for a home).