Festgeld

TARGOBANK Fixed-Term Deposit at a Glance

TARGOBANK's 12-month fixed-term deposit is a classic, fixed-rate offer from an established German branch bank. It suits savers who want a fixed, predictable rate for a year and don't need flexibility during the term. As a nationwide branch bank, TARGOBANK also offers the option of clarifying questions about the product in person at a branch, rather than only online or by phone - a difference from the pure direct banks in this comparison.

Interest Rate and Terms

For the 12-month term, TARGOBANK pays 2.50% p.a. This figure matches in both our product database and the bank's current offer page, and it applies to deposits from €2,500, with no upper limit according to the provider. On the €2,500 minimum deposit, that works out to roughly €62.50 in interest after twelve months, before tax. The rate is fixed for the entire term: "interest-rate fluctuations are excluded", as the bank itself puts it. TARGOBANK also offers fixed-term deposits for other terms between 6 months and 6 years, with correspondingly tiered, sometimes higher, rates - this review, however, covers only the 12-month product listed as a separate offer in our database. Compared with the other 12-month fixed-term deposits we reviewed, this rate sits in the solid middle of the pack, level with several other providers and slightly below the current best rate of 2.65% p.a.

Terms and Fees

A reference account at another bank is mandatory for paying out interest and capital, as this is how interest and capital are settled at the end of the term. No further deposits or early withdrawals are possible during the term; early termination is, according to the provider, only foreseen in exceptional cases, such as particular hardship. At maturity, the fixed-term deposit can renew automatically at the then-current rate - anyone who doesn't want that should note the maturity date and cancel or withdraw the capital in good time, rather than being unintentionally locked in again on unknown future terms. The material we reviewed makes no separate mention of account-management fees, but none are mentioned either.

Who It's For

TARGOBANK's fixed-term deposit suits savers who can do without a €2,500 minimum deposit for a year, want a fixed rate with no ceiling on the deposit amount, and don't mind the extra step of setting up a reference account. Anyone with a branch nearby who values in-person advice benefits further from the bank's nationwide branch network.

Pros and Cons

Pros:

• Fixed, transparent rate with no fluctuations during the term
• No ceiling on the deposit amount
• Established German branch bank with a wide range of terms

Cons:

• Mandatory reference account, extra effort for new customers
• Automatic renewal at maturity can lead to unintended lock-in
• 2.50% p.a. is below the best rate in the comparison (2.65% p.a.)

Verdict

TARGOBANK's 12-month fixed-term deposit offers a solid, guaranteed rate of 2.50% p.a. with no ceiling on the deposit. Anyone who can set up a reference account and keeps an eye on the automatic renewal gets an uncomplicated, predictable investment at a well-known German bank with a nationwide branch network - a plus for anyone who also values personal contact with their bank.