Fixed-term deposit – safe and with good interest
The interest rates on fixed deposits are comparatively high. From a term of one year, a fixed-term deposit usually yields higher interest rates than a call money account. With a term of five years, some providers reward their customers with 0.85 percent interest – in ours fixed deposit comparison below you will find our recommendations.
In addition to acceptable interest rates, a fixed-term deposit account is particularly impressive in terms of security: the interest rate is stable over the term, the investment can be planned exactly and the invested capital is also protected against possible payment defaults by the bank via the deposit guarantee.
The German Bank Compensation Scheme (EdB) protects deposits of up to EUR 100,000 per person and bank. Private banks, which also belong to the security fund of the Association of German Banks (BdB), even protect deposits in the millions. For more information, see einlagensicherung.de.
Banks based in other EU countries are also protected up to EUR 100,000 per person and bank 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 be exceptions.
Important: The UK will compensate the equivalent of £85,000, which at the end of April 2022 was equivalent to just over €100,000. The Swedish deposit insurance also protects only 1,050,000 kroner in the event of a bank failure. In mid-June 2022, this corresponded to an equivalent value of around 98,000 euros.
Tip: Deposit a maximum of 100,000 euros in savings accounts with the Swedish financial institutions Hoist Finance, Nordax Bank or TF Bank and keep an eye on the exchange rate between Swedish kronor and euros.