Saving & borrowing2 min read
Fixed-term depositGerman: Festgeld
A fixed-term deposit is money placed with a bank for an agreed period at a fixed interest rate.
In plain language
During the term, access is usually restricted or unavailable. The contract specifies whether interest is paid annually, at maturity or otherwise. Check automatic renewal terms as well.
Let’s make it concrete
€5,000 at 3% for one year earns an illustrative €150 before taxes. The principal is contractually tied up for that period.
Simplified example for illustration.Worth understanding
A fixed rate does not prevent loss of purchasing power. If inflation is higher, the real return may be negative.
Read more from official sources
For further learning and reference:
Financial education for orientation. No individual investment, tax or legal advice.
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