Fixed-term deposits – safe and with good interest
The interest rates for fixed-term deposits are relatively high. With a term of one year or more, a fixed-term deposit usually yields higher interest than a call money account. With a term of five years, some providers reward their customers with 1.40 percent interest and more – you will find our recommendations in our time deposit comparison below.
In addition to acceptable interest rates, a fixed-term deposit account is particularly convincing in terms of security: the interest rate is stable over the term, the investment can be precisely planned and the invested capital is also protected against possible defaults by the bank via the deposit guarantee.
The Compensation Scheme of German Banks (EdB) protects deposits of up to 100,000 euros per person and bank. Private banks, which also belong to the security fund of the Federal Association of German Banks (BdB), even protect deposits in the millions. Further information is available at einlagensicherung.de.
At banks based in other EU countries, up to 100,000 euros per person and bank are also covered thanks to the state deposit insurance of the European Union. Countries that are part of the EU but do not use the common currency, the euro, can make exceptions.
Important: Great Britain compensated the equivalent of 85,000 pounds, which at the beginning of March 2018 was equivalent to less than 100,000 euros. The Swedish deposit insurance also only protects 950,000 kroner in the event of a bank failure. At the beginning of March 2018, this corresponded to an equivalent of almost 94,000 euros.
Tip: Put a maximum of 85,000 euros in savings accounts of the Swedish financial institutions Klarna, Hoist Finance, Nordax Bank or TF Bank. The Swedish Ikano Bank is not affected as the bank has a branch in Germany.