Festgeld

Overview

CreditPlus Bank's term deposit is a fixed-term investment with a 12-month term and a guaranteed, fixed interest rate for the entire term. It suits savers who want to invest an amount from €5,000 for one year at low risk without paying any account maintenance fees.

Interest rate

For a 12-month term, CreditPlus Bank pays 2.76% p.a. According to the bank's offer page, this rate applies consistently to terms between 12 and 84 months, while shorter terms of 3 to 9 months earn 2.45% p.a. The interest rate is a "guaranteed fixed rate for the entire term" — it will not change during the contract term.

At CreditPlus Bank too, interest accrues annually according to the product data (data field "frequency": "Y"). For terms exceeding 12 months, these annual interest amounts are paid directly to the reference account as described above; for the 12-month term reviewed here, the single interest payment falls due only at the end of the term.

How interest is paid out on longer terms

A specific feature at CreditPlus Bank applies to terms longer than 12 months: interest earnings are not paid out only at the end of the entire term, but are transferred annually to the reference account starting from the first year. For the 12-month offer reviewed here, this specifically means that the full 2.76% interest return is paid out together with the invested amount once the one-year term ends.

Conditions

The minimum investment is €5,000 per account. The bank states a maximum investment of €1,000,000 per account, with customers able to invest up to €2,500,000 in total across multiple accounts. A reference account is required; for terms exceeding 12 months, interest is paid out directly to this reference account starting from the first year rather than only at the end of the term. The bank charges no account maintenance fees for the term deposit account. The deposit is protected under the statutory deposit guarantee up to €100,000 per customer and bank.

Who is this term deposit for

This offer suits savers who want to invest an amount between €5,000 and €100,000 for one year and value a guaranteed interest rate with no ongoing account maintenance fees. For larger six-figure investment amounts, it's worth noting that the statutory deposit guarantee only covers up to €100,000 per customer, even though the bank itself permits significantly higher investment amounts.

Taxation of interest income

In Germany, interest income from term deposits is generally subject to the flat-rate withholding tax (Abgeltungsteuer) of 25%, plus the solidarity surcharge and, where applicable, church tax. The saver's lump-sum allowance (Sparer-Pauschbetrag) currently stands at €1,000 for individuals and €2,000 for jointly assessed married couples and civil partners — capital income up to this amount remains tax-free per year, provided an exemption order (Freistellungsauftrag) is filed with the bank in good time. Savers who do not file an exemption order initially pay withholding tax on the full interest income and can reclaim any overpaid tax via their income tax return.

Verdict

With 2.76% p.a. for 12 months, a moderate minimum investment of €5,000, and a guaranteed fixed rate with no account maintenance fees, CreditPlus Bank's term deposit is a solid, transparently structured offer. Savers wanting to invest for longer will find, according to the bank's own website, the same interest rate available for terms of up to 84 months. It's worth keeping in mind that only the first €100,000 per customer is protected by the statutory deposit guarantee.