Festgeldkonto

1822direkt Fixed-Term Deposit Account at a Glance

The fixed-term deposit account from 1822direkt, a direct-banking brand of Frankfurter Sparkasse, offers a 12-month fixed-term deposit with a guaranteed rate. It suits savers who want to lock in larger amounts for a year and are comfortable with an additional settlement account at the bank. The link to Frankfurter Sparkasse gives the brand the reach and infrastructure of a large German savings-bank group, even though the product itself is handled entirely digitally. Signing up, managing the account, and communicating with the bank all happen without a branch visit, which suits customers who are comfortable banking fully online.

Interest Rate and Terms

On 1822direkt's current offer page, the rate for the 12-month term is listed as 2.50% p.a. A note on the data: our internal product database initially had a value of 2.20% p.a. on file for this term — but that figure exactly matches the rate the offer page lists separately for the 6-month term, not the 12-month rate. This review therefore uses the 2.50% p.a. figure the current offer page explicitly states for 12 months. The deposit amount ranges from €5,000 to €1,000,000; on the €5,000 minimum deposit, that works out to roughly €125 in interest after twelve months, before tax. According to the provider, the rate is guaranteed for the entire term and not variable. That puts 1822direkt level with several other providers in this comparison, a little below the current top rate of 2.65% p.a.

Terms and Fees

A settlement account is mandatory for paying out interest and capital. Existing customers can use their existing instant-access savings or current account; for new customers, 1822direkt automatically opens an additional instant-access savings account with a current base rate of 0.60% p.a. as the settlement account. So anyone investing with 1822direkt for the first time effectively ends up with two accounts instead of one and should factor that into their account overview. According to the provider, account management is free, no further deposits are possible during the term, and beyond the €5,000 minimum deposit, the fixed-term deposit is set up as a one-off investment at the start of the contract, with no provision for later top-ups to the same account.

Who It's For

1822direkt's fixed-term deposit account best suits savers who want to lock in €5,000 or considerably more for a year and have no reservations about an additional, automatically opened instant-access savings account. For investors with very large sums, the €1,000,000 ceiling is particularly generous in this comparison, while savers with smaller amounts are better served by providers with a lower minimum deposit.

Pros and Cons

Pros:

• High possible deposit amount up to €1,000,000
• Rate guaranteed for the entire term
• Free account management

Cons:

• €5,000 minimum deposit is comparatively high
• Mandatory settlement account; new customers get an additional instant-access savings account automatically
• Internal data on the 12-month rate was inconsistent; the current offer figure differs from older database entries

Verdict

At 2.50% p.a. for 12 months with an investment range up to €1,000,000, the 1822direkt fixed-term deposit account is particularly well suited to larger deposit amounts. New customers should plan for an additional settlement account being opened automatically, and factor the €5,000 minimum deposit into their own financial planning. For very large sums, it's one of the more flexible offers in our comparison.