Compare deposits in Germany

A fixed-term deposit is an investment with a set term and an interest rate agreed with the bank when you sign, which applies for the whole term. That makes your return predictable. At the end of the term, the bank usually transfers your money plus interest to your reference account.

Generally not: early access during the term is usually excluded. If the bank makes an exception, it can cost you interest or trigger an early-termination charge. So only invest money you will not need before maturity.

Depending on the agreement, the bank either transfers your money plus interest to your reference account or renews the deposit automatically, often at a lower rate. Your money is then locked up again, even if you need it by then. Check the rule before signing and give notice in time if needed.

Tagesgeld is available at any time, but its rate is variable and can change at any moment. Festgeld locks your money for the agreed term, but the rate is fixed from the start. Tagesgeld suits reserves you may need quickly; Festgeld can make sense for money you are sure you will not need for longer.

Interest on fixed-term deposits is investment income: it is subject to a 25% flat-rate tax, plus a 5.5% solidarity surcharge on that tax and, if applicable, church tax. Banks in Germany withhold the tax directly. Income up to the saver's allowance of €1,000 a year (€2,000 for jointly assessed couples) stays tax-free if you have submitted an exemption order. If your personal tax rate is below 25%, you can apply for the more favourable assessment (Günstigerprüfung) in your tax return.

If your total income, including investment income, is so low that no income tax is due, you can apply to your tax office for a non-assessment certificate. Once you give it to your bank, the bank withholds no flat-rate tax, even beyond the saver's allowance. The certificate is valid for at most three years; if the conditions no longer apply, you must return it.

The bank automatically checks with the Federal Central Tax Office whether you are liable for church tax and, if so, withholds it together with the flat-rate tax. You can block this data transfer by filing a blocking notice (Sperrvermerk) with the Federal Central Tax Office. You must then declare your investment income in your tax return so that the tax office can assess the church tax.

For banks headquartered in another EU or EEA state, the home country's statutory deposit guarantee scheme protects your deposits up to the equivalent of €100,000 per customer and bank. This also applies to their branches in Germany. With providers outside the EU, weigh the insolvency risk particularly carefully. With deposit platforms, what matters is which partner bank actually holds your money.