The classic fixed-term deposit account has not had its day: attractive options for savers


Anyone looking for a way to invest their money often inevitably comes across the fixed-term deposit account. This is a classic that is offered by numerous banks and still offers extensive advantages.

The characteristic feature here is that it is unfortunately not possible to dispose of one's money spontaneously to the greatest possible extent. On the other hand, savers benefit from being able to calculate with fixed interest rates. This means that they know exactly how much money will have accumulated within a certain time.

The establishment of a fixed deposit account is based on a simple principle. As a rule, an amount is deposited here once. It is not possible to save on the account on a regular basis. Those who choose this option should therefore be sure that they will not have to rely on the corresponding amount in the coming years or for the term of the time deposit account.

The following sections show why the time deposit account is still popular and why it is worthwhile to include the relevant offers in your research for an effective investment option.

How long should you invest time deposits for anyway?

This is a question that every saver must answer for himself. Anyone who is looking for a Fixed deposit with high security is well advised to find out about the current conditions of the various providers and at the same time realistically assess his or her personal situation.

How long the respective amount should be invested depends on two details. In the first step, it makes sense to ask yourself how long the respective sum can be waived. It is also important to consider the length of the term in relation to the interest rate. If necessary, it may be worthwhile to commit to something longer in order to benefit from higher interest rates in the end.

In this context, it is usually the case that the first three years of the term are particularly lucrative. Those who opt for a longer commitment often benefit only from slightly higher interest rates. Nevertheless, there are of course exceptions. Therefore, it is all the more important to look into the offers of the respective banks and to carry out a time deposit comparison in advance.

Fixed deposit interest is paid once a year or at the end of the term

Fixed-term deposits are considered easier to plan than per diem. This is evident not only with regard to the amount of the interest, but also with regard to their payout. Some banks pay out once a year, Other at the end of the term.

Whether it is possible - also as a self-employed person and in tax terms - If in doubt, your tax advisor can answer the question of whether it makes more sense to consider only those offers that allow annual interest crediting from the outset.

As a basic rule, the longer a customer commits, the higher the interest rates paid on his or her fixed-term deposit account. In this context, some experts recommend using the staircase strategy. The principle: the saver divides the corresponding sum over several terms and on the basis of several accounts. Once the first fixed-term deposit account has expired, the customer can use the available Invest money again and at a longer term.

In this way, a cycle is created in the context of which not only higher interest rates but also convincing flexibility can be profited from.

Time deposit accounts: Savers should keep these points in mind

Fixed-term deposit accounts not only offer advantages, but are also associated with one or two disadvantages. After all, it is not possible, for example, to venture a look into the crystal ball and know whether a larger sum of money will need to be available in two years' time.

Therefore, any saving on the basis of a time deposit account also represents a kind of calculated risk. However, anyone who is aware of this and prefers to invest a little less in case of doubt can enjoy an opportunity to save in connection with which they do not have to worry about set-up costs or account management fees and at the same time protect one's assets can. The security aspect is also convincing due to the fact that the corresponding sums are safe from fluctuations in value.

The best time deposit offers currently

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