Top Yields for German Fixed-Term Deposits:
- Raiffeisenbank Wittelsbacher Land fixed-term savings account: 3.33% interest with 6-month duration
- Rediem Capital AB fixed-term savings account: 3.25% interest with 120-month duration
- J&T Direktbank fixed-term savings account: 3.05% interest with 60-month duration
Looking for the best rates on fixed-term deposits in Germany? Our comparison tool helps you find attractive offers from various banks. Whether you’re seeking a safe investment option or want to maximize your returns, explore the benefits of fixed-term deposits and find the perfect fit for your financial goals. Select your savings amount and duration, and check yields in the calculator:
Banco BAI Europa
Festgeld - raisin
- 60 months duration
- Deposit insurance in Portugal
Commercial partner
Banca Popolare di Fondi
Festgeld - raisin
- 6 months duration
- Deposit insurance in Italy
Commercial partner
Banca Popolare di Fondi
Festgeld - raisin
- 3 months duration
- Deposit insurance in Italy
Commercial partner
TBI Bank
Festgeld - raisin
- 9 months duration
- Deposit insurance in Bulgaria
Commercial partner
TBI Bank
Festgeld - raisin
- 6 months duration
- Deposit insurance in Bulgaria
Commercial partner
BluOr Bank
Festgeld - raisin
- 3 months duration
- Deposit insurance in Latvia
Commercial partner
illimity Bank
Festgeld - raisin
- 6 months duration
- Deposit insurance in Italy
Commercial partner
Understanding Tagesgeld Accounts
What is a Festgeld Account?
A Festgeld account, also known as a term deposit, is a type of savings account where you agree to deposit a fixed amount of money for a fixed term. During this term, the interest rate remains constant, providing a guaranteed interest rate. At the end of the term, you receive your initial deposit plus the accrued interest. This type of investment is a secure way to grow your savings.
When to Use a Term Deposit?
Term deposits are suitable when you want a safe and predictable investment with a fixed interest rate. If you have a sum of money you do not need immediate access to, investing in a term deposit can offer a better return than a German flexible savings account. It is also a suitable option if you want to protect your money from market fluctuation and guarantee a specific return over a set time.
Advantages of Fixed Deposits
The main advantage of a fixed-term deposit is the guaranteed interest rate throughout the term. This provides a secure and predictable return on your investment. Furthermore, in Germany and across the EU, your deposits are protected by a deposit guarantee scheme. This deposit protection makes fixed-term deposits a safe investment option, shielding your money from risk.
How to Open a Term Deposit Account
Prerequisites for Opening Festgeld
To open a fixed-term deposit account in Germany, you typically need to be of legal age and have a valid form of identification. Some banks may require you to be a German resident. You will also need to have the initial deposit amount available. To perform the transfer, you must usually have a current account in Germany or Europe with a European bank account number (IBAN). The opening process can be easily completed online.
Steps to Open a Fixed-Term Deposit
Opening a fixed-term deposit account generally involves comparing offers and selecting a bank with an attractive interest rate with our calculator above. Then, you apply online by providing the required data. After your identity is verified, you deposit the amount you want to invest. Once the term ends, the interest is paid, and your money is returned, or the term may be automatically renewed, depending on the contract and your objective.
Identification Process
eID Verification
The eID verification process allows you to confirm your identity online using your German ID card (Personalausweis). To use this option, you need a compatible device with NFC functionality, such as a smartphone, and your personal PIN. This method is both efficient and highly secure, providing a modern alternative to traditional identification procedures and simplifying the setup of a German Festgeld account.
Video Identification (VideoIdent)
With VideoIdent, your identity is verified through a real-time video session with a bank employee or an external service provider. During this session, you present your identification document via your camera while the agent checks its authenticity visually. Since the process only requires an internet connection and a device with a camera, it can be completed from virtually any location.
Post Office Identification (PostIdent)
The PostIdent procedure involves visiting a nearby post office in person. You must bring your identification document along with a PostIdent form supplied by your bank, typically available as a PDF that needs to be printed beforehand. At the post office, a staff member will carry out the identity check and forward the confirmation to the bank. Although this approach is more conventional, it remains a commonly accepted method and is particularly suitable for individuals who prefer in-person verification over digital alternatives.
Safety and Protection of Deposits for Festgeld
Protection of Your Festgeld Balance
When considering a Festgeld deposit, the security of your investment is paramount. It shall be a safe haven for your money. The fixed-term nature of these deposit accounts means the interest rate is guaranteed for the entire term. This offers protection against market fluctuation. Depositors can rest assured that their savings are secure throughout the fixed-term. This is particularly beneficial in times of economic uncertainty, helping maintain peace of mind.
EU Deposit Insurance Explained
The EU deposit guarantee scheme protects your deposits up to EUR 100,000 per credit institution. This means that if a bank fails, your money is protected up to this amount. This deposit protection scheme applies across all EU countries, including Germany, providing a high level of safety for your fixed-term deposit. Even though this is a European regulation, deposit protection is organized at the national level. Hence, the solvency or reliability of the state is important. Countries such as Germany, Sweden, and the Netherlands have the highest sovereign credit rating, AAA.
Who Should Consider a Fixed-Term Deposit?
Target Groups for Fixed-Term Deposits
Fixed-term deposits are particularly suitable type of German high-yield savings account for individuals seeking a safe, secure investment option. They are ideal for those who have a lump sum of money they don’t need immediate access to and want to earn a guaranteed interest rate. This includes retirees, conservative investors, and anyone saving for a specific goal, such as a down payment on a house. Fixed-term deposits can be a great fit for retirement planning.
Types of Banks Offering Fixed-Term Accounts
Various types of banks in Germany and Europe offer fixed-term deposit accounts. This includes traditional banks, online banks, and credit institutions. Each may offer different interest rates and terms, so it’s important to compare offers to find the one that best suits your needs. Online banks often offer more attractive interest rates because of lower overhead costs. Comparing offers across different banks is easy with Settle in Germany’s calculator.
Interest Rates and Offers
Current Highest Fixed Deposit Interest Rates
The best interest rate for 2026 is currently offered by Raiffeisenbank Wittelsbacher Land for their Festgeld with 6-month duration at 3.33% per year. Rates depend on the deposit term, with longer terms often yielding higher interest. Banks frequently adjust rates to remain competitive and attract new customers. Keep an eye on these rates to maximize your potential yield.
Factors Determining Interest Rates
Several factors influence the fixed deposit interest rates offered by European banks. These include the deposit term, the amount you invest, and the overall economic climate. Shorter terms usually have lower interest rates, while longer terms may offer higher returns. Market conditions, such as inflation and the European Central Bank’s policies, especially its interest rate policy, also play a significant role.
Tax Implications of Fixed-Term Deposits
Understanding Germany’s Tax on Interest Earnings
In Germany, interest earned from fixed-term deposits is subject to tax. The capital gains tax, known as Kapitalertragsteuer, is a form of income tax applied to investment earnings. German Banks mostly automatically withhold this tax from your interest payments and remit it to the tax authorities. It is a flat tax rate of 25% plus a solidarity surcharge (Solidaritätszuschlag) and, if applicable, the church tax (Kirchensteuer). The good news: There is an annual tax-free allowance, the Sparer-Pauschbetrag, of 1,000 euros.
Frequently Asked Questions
How often does Settle in Germany update the interest rates for the Festgeld calculator?
Can I open a German fixed-term account online?
What is a reference account?
Why do you show Festgeldkontos from from banks in other European countries?
What is a deposit insurance?
What alternatives to a Tagesgeldkonto exist?
How much does a Festgeldkonto cost?
