TF Bank Festgeldkonto

TF Bank Festgeldkonto (Fixed-Term Deposit) at a Glance

The TF Bank Festgeldkonto is a classic fixed-term deposit with a fixed 12-month term. It suits savers who can do without their money for a year, want a rate that is guaranteed from day one, and don't need to access the deposit during the term. The provider is TF Bank, a Swedish direct bank that also offers this fixed-term deposit to customers in Germany. Unlike a flexible savings account, where the rate can be adjusted at any time, the rate on a fixed-term deposit is locked in for the entire term as soon as the contract is signed.

Interest Rate and Terms

For the 12-month term, TF Bank offers a rate of 2.65% p.a. This figure is identical in our product database and on the bank's current offer page, and it applies to deposits from €5,000. On the minimum deposit of €5,000, that works out to roughly €132.50 in interest after twelve months, before tax. According to the provider, the rate is guaranteed for the entire term, i.e. not variable — rate fluctuations during the term are excluded. Interest is credited only at the end of the 12 months; there are no interim payouts and no compounding effect during the term, since the interest isn't reinvested in the meantime. Among the five 12-month fixed-term deposits we reviewed, TF Bank's 2.65% p.a. is currently the highest, ahead of several offers at 2.50% p.a.

Terms and Fees

According to the provider, the account is completely free, with no account-management fees. In exchange, the deposit is unavailable during the term: early termination before the 12 months are up is not possible. Anyone who wants to stay flexible during the year should factor this into how much they deposit, and only pay in money they genuinely won't need at short notice. On deposit protection: TF Bank falls under the Swedish deposit guarantee scheme, protecting up to 1,150,000 Swedish kronor per customer — a different system from the German statutory deposit protection scheme, even though both rest on the same EU legal framework and pursue a comparable level of protection. Anyone who specifically wants protection under the German scheme should weigh this point before signing up. We found no reliable information on whether a reference account is required; it's worth asking the bank directly before you commit.

Who It's For

The TF Bank Festgeldkonto best suits savers who already have at least €5,000 set aside, don't need it for a year, and prioritise the highest possible guaranteed rate. Savers with smaller amounts, or those who specifically want protection under the German deposit guarantee scheme, should look at an offer with a lower minimum deposit or a German bank instead.

Pros and Cons

Pros:

• 2.65% p.a. — one of the highest rates in the comparison
• Rate guaranteed for the entire term, no fluctuations
• No account-management fees

Cons:

• €5,000 minimum deposit is comparatively high
• No early access to funds during the 12 months
• Deposit protection runs through the Swedish, not the German, scheme

Verdict

Anyone who can do without at least €5,000 for a year will find one of the more attractive rates in the comparison with the TF Bank Festgeldkonto — guaranteed for the full term and free of ongoing costs. Before signing up, it's worth being clear that the deposit is protected under the Swedish deposit guarantee scheme and stays locked up for the full twelve months. For savers who can accept both points, this is currently one of the more attractive options for a one-year, fixed-rate deposit.