Fixed-term deposit (Festgeld)
A bank deposit with a fixed rate and a fixed term during which you cannot access the money.
In short
As of 8 October 2026A fixed-term deposit is a bank investment with a fixed interest rate and a fixed term, for example 6 months to 5 years. During the term you usually cannot access the money, but the rate is guaranteed. Balances up to 100,000 euros per person and bank are protected by deposit insurance. If rates rise later, you only benefit once the term ends.
With a fixed-term deposit (German: Festgeld) you lock in an amount for a set period, say 6 months to 5 years, at an agreed interest rate. Unlike instant-access savings, the rate does not change during the term. In return you usually cannot withdraw the money early.
Festgeld is protected by deposit insurance up to 100,000 euros per person and bank. It makes sense mainly when you want to lock in a rate for a while and are sure you will not need the money. If rates rise later, you do not benefit. The interest is taxable investment income.
Example: you deposit 10,000 euros for 2 years at 2.6 % a year. With interest paid annually, you receive 260 euros a year before tax. Whether a fixed rate or an ETF suits you better is covered in the topic Tagesgeld or ETF.
Related terms
Sources
As of 8 October 2026 · Educational content, not investment or tax advice.