Festgeld

DKB Fixed-Term Deposit at a Glance

DKB's 12-month fixed-term deposit is an offer from one of Germany's largest direct banks. It suits savers who want a guaranteed rate for a year and are willing to hold a DKB current account as the reference account for it. As a pure direct bank, DKB handles the entire sign-up and account-management process online, which keeps day-to-day use of the fixed-term deposit straightforward. DKB is one of the larger direct banks in Germany and is already used by many customers as their main bank for everyday banking, which makes access to the fixed-term deposit easier in those cases.

Interest Rate and Terms

On DKB'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 had a lower value of 2.10% p.a. on file for this term, with quarterly interest crediting (a calculated effective yield of around 2.12% p.a. from the compounding effect). Since DKB's official page explicitly states the 12-month annual rate as 2.50%, we use this more current figure for the review. The deposit amount ranges from €2,500 to €500,000; on the €2,500 minimum deposit, that works out to roughly €62.50 in interest after twelve months, before tax. According to the provider, interest is credited quarterly, which creates a slight compounding effect during the term — the actual return can end up marginally above the plain nominal rate, rather than being paid out as a single lump sum only at the end of the term as with many competitors. At 2.50% p.a., DKB is level with several other providers in our comparison, a little below the current top rate of 2.65% p.a.

Terms and Fees

A DKB current account is required as the settlement/reference account — without an existing relationship with DKB, the fixed-term deposit isn't usable in this form, so a new current account may need to be opened as well. The fixed-term deposit account itself is free, and early access to the deposit isn't possible during the term. According to the provider, deposits are protected beyond the statutory deposit guarantee scheme through an additional deposit-protection fund, offering coverage beyond the statutory minimum. Existing customers can typically open the fixed-term deposit directly through their existing online banking, without further identification steps.

Who It's For

DKB's fixed-term deposit is best suited to savers who already hold a DKB current account, or are willing to open one, and who prefer quarterly interest crediting over a single payout at the end of the term. Anyone who doesn't want a DKB current account should look at an offer without this requirement.

Pros and Cons

Pros:

• Quarterly interest crediting with a slight compounding effect
• Additional protection via a deposit-protection fund beyond the statutory scheme
• Free account management

Cons:

• DKB current account mandatory as the reference account
• €2,500 minimum deposit
• Internal data on the rate was inconsistent; the current offer figure differs from older database entries

Verdict

DKB's fixed-term deposit offers a competitive, quarterly-credited rate of 2.50% p.a. for 12 months. Anyone who already holds a DKB current account, or is willing to open one, gets an uncomplicated, free fixed-term deposit with additional deposit protection. For anyone planning to consolidate their banking with DKB anyway, the fixed-term deposit is a natural addition to an existing current account.