UmweltFestzins

Introduction

"UmweltFestzins" is the fixed-term deposit product from UmweltBank. Both the bank's and the product's name already point to a focus on sustainable, environmentally oriented principles. It is a classic term deposit with a rate fixed for a chosen term — suited to savers who want to invest a larger sum securely and predictably over a longer period.

Interest Rate

For a 12-month term and a deposit from €2,500, UmweltBank states a rate of 1.75% p.a. — this figure is confirmed identically both in the stored product data and on the bank's current offer page.

UmweltBank also tiers the rate by term, which helps put things in context: 6 months earns 1.20% p.a., 1 year 1.75% p.a., 3 years 2.00% p.a., 5 years 2.50% p.a., 7 years 2.75% p.a., and the longest available term of 10 years 3.00% p.a. Savers willing to commit for longer therefore receive a noticeably higher rate. According to the bank, rates are fixed for the full term and do not change once the contract is signed.

Deposit, Safety, and Terms

The minimum deposit is €2,500, the maximum €1,000,000. A reference account is required: payouts are made exclusively to a registered reference account, for which either a UmweltBank savings account or a checking account at any other German bank can be used — unlike some competitors, UmweltBank does not require its own account here. Early access to the capital during the term is not possible. According to the provider, there are no account maintenance fees for the fixed-term deposit itself, and deposits are protected up to €100,000 under the deposit guarantee scheme.

Who It Suits

UmweltFestzins suits savers who would rather not commit their capital to a single fixed term but instead choose specifically among several time horizons. Those with a short-term focus can pick the 6- or 12-month term, while anyone aiming for a higher return and able to do without the capital for longer benefits considerably from terms of 5 years or more. Because the reference account does not have to be held at UmweltBank itself, getting started is comparatively straightforward even for customers of other banks.

Pros and Cons

• Interest tier of up to 3.00% p.a. at a ten-year term, considerably more than the standard 12-month term
• Reference account can be held at any German bank; no dedicated UmweltBank account is mandatory
• Rate fixed for the term with no account maintenance fees, deposit protection up to €100,000

• At the 12-month term, 1.75% p.a. is a fairly moderate rate compared with the longer terms from the same provider
• Minimum deposit of €2,500 required
• No early access to the invested capital during the term

Verdict

UmweltBank's UmweltFestzins stands out chiefly for its clear rate ladder across several terms and its flexibility on the reference account. At the 12-month term, the rate of 1.75% p.a. sits in the middle of the pack among the offers reviewed here; savers seeking a higher return should specifically consider a longer term of 5, 7, or 10 years, where up to 3.00% p.a. is possible.