Fixed Deposit Comparison in Germany 2026
How Festgeld works, what rates to realistically expect and how your savings are protected up to 100,000 euro — a clear overview for expats and newcomers.
Compare fixed depositsIn short
A fixed deposit (Festgeld) locks your money away for a set term in return for a guaranteed interest rate. As of September 2026 the best one-year offers on German rate trackers pay roughly 3.1 to 3.55 percent per year; most mainstream banks pay less. Your balance is protected up to 100,000 euro per bank under German law, and many providers let you open online in minutes. The trade-off is access: the money is tied up until maturity, so keep an emergency buffer in instant-access savings.
The key points at a glance
- •The rate is fixed for the whole term, so you know your return in advance, unlike instant-access Tagesgeld.
- •Top one-year offers pay roughly 3.1 to 3.55 percent per year as of September 2026 (per independent rate trackers); most banks pay less.
- •Deposits are protected up to 100,000 euro per customer per bank under the German Deposit Guarantee Act.
- •The money is tied up until maturity, so only commit funds you will not need before the term ends.
- •Interest is taxed at the 25 percent flat rate plus surcharge; an exemption order shelters up to 1,000 euro a year.
What is a fixed deposit (Festgeld)?
A fixed deposit, called Festgeld in German, is one of the simplest ways to save. You agree a term and an amount with the bank, transfer the money, and receive a fixed interest rate for the whole period. At the end of the term you get your capital back plus the interest. Because the rate is agreed up front, you know exactly what you will earn from the start — there are no market swings as with shares or funds. The Verbraucherzentrale describes Festgeld as a low-risk building block for money you do not need in the short term.
The headline rates banks advertise move with the European Central Bank's policy rate. The ECB cut rates through 2024 and 2025, and its deposit facility rate has stood at 2.25 percent since 23 July 2026. Fixed deposit offers have come down from their earlier peaks accordingly. Current rate levels are published by the Deutsche Bundesbank in its MFI interest rate statistics, which is the most neutral reference if you want to sanity-check a bank's advertised rate.
When a fixed deposit makes sense
- You have a lump sum you will not need for a defined period.
- You want a guaranteed return with no market risk.
- You value planning certainty over flexibility.
- You already hold an emergency buffer elsewhere.
When to think twice
- You might need the money before the term ends.
- You expect rates to rise sharply and want to react.
- You are saving long term and could accept more risk for higher potential returns.
- Inflation is running above the rate on offer.
What rates can you expect in 2026?
Longer terms do not automatically pay more. When markets expect rates to fall, shorter terms can even pay slightly higher than longer ones. The figures below reflect offers listed on independent rate trackers in September 2026. Always check the live rate before you apply, because offers change frequently.
| Term | Indicative rate range (September 2026) | Best suited to |
|---|---|---|
| 3 months | around 2.3–2.8 percent for top offers | Short lock-in, quick access again |
| 6 months | around 2.9–3.15 percent for top offers | Middle ground between rate and flexibility |
| 12 months | around 3.1–3.55 percent for top offers | Balanced return and flexibility |
| 24 months | around 3.15–3.49 percent for top offers | Longer lock-in for a steadier rate |
Rate ranges are indicative and reflect offers listed on independent rate trackers and comparison sites such as Finanztip, Check24 and Verivox in September 2026. They are not an offer and will differ between banks. Always confirm the effective annual rate before applying.
Check the deposit protection
Make sure the bank is covered by the statutory scheme. For offers via deposit marketplaces, check which country's guarantee applies.
Read the renewal clause
Some deposits roll over automatically at maturity at a new rate. Note the deadline if you want to reclaim the money instead.
Minimum and maximum deposit
Many banks set a minimum of 500 to 10,000 euro and a cap on how much earns the top rate. Check both before you commit.
When interest is paid
Interest may be credited yearly or only at the end. For multi-year deposits this affects how compounding works, so compare like for like.
Do you need a German bank account?
Usually yes. Most German banks pay out a maturing fixed deposit to a German current account held in your name, so a Girokonto is the practical starting point. There is a second route: deposit marketplaces such as Raisin (formerly WeltSparen) bundle fixed-deposit offers from partner banks across the EU under one login and one identity check.
One thing to check with marketplace offers: the deposit guarantee follows the bank, not the platform. If the partner bank sits in another EU country, that country's national scheme covers your 100,000 euro, not the German one. The legal limit is the same across the EU, but payout practicalities can differ, so read the guarantee details before you commit.
How safe is your money?
In Germany the statutory deposit guarantee protects up to 100,000 euro per customer per bank. This limit is set out in the Deposit Guarantee Act (Einlagensicherungsgesetz) and supervised by BaFin. The same 100,000 euro limit applies across the EU, so it also covers offers from banks in other member states made through deposit marketplaces.
If you want to protect more than 100,000 euro, spread the amount across several banks so each balance stays within the limit. Many private banks also belong to a voluntary protection fund on top of the statutory minimum, but the legally guaranteed 100,000 euro is the figure you can always rely on. One useful exception: amounts from the sale of a private home and certain life events (such as retirement payouts) are protected up to 500,000 euro for six months after they are credited, under Section 8(2) of the Deposit Guarantee Act.
How is fixed deposit interest taxed?
Interest counts as investment income and is taxed at the flat-rate Abgeltungsteuer of 25 percent, plus the 5.5 percent solidarity surcharge on the tax (about 26.4 percent in total), plus church tax where it applies. You can shelter the first 1,000 euro of investment income per year, or 2,000 euro for jointly assessed couples, by giving your bank an exemption order (Freistellungsauftrag).
A worked example
Suppose you place 10,000 euro for one year at 3 percent. That earns 300 euro in interest. Without an exemption order, roughly 79 euro in tax and surcharge is withheld, leaving about 221 euro. If that 300 euro stays within your annual 1,000 euro allowance and you have filed an exemption order, you keep the full amount. Always set up the Freistellungsauftrag with your bank to use the allowance.
Compare savings and deposit offers in Germany
Find and compare banking offers side by side — rates, terms and conditions at a glance.
AdvertisingThis comparison calculator is provided by our partner. If a contract is concluded through it, we receive a commission.
Advertisement — this comparison is funded by our partner. We may receive a commission when you complete an application, at no extra cost to you. Our comparison stays independent.
Related guides
Savings account comparison
Instant-access Tagesgeld to pair with a fixed deposit for your emergency buffer.
Current account comparison
Open a German Girokonto, the account you usually need to fund a fixed deposit.
Loan comparison Germany
How personal loans work in Germany and what rates to realistically expect.
Credit card comparison Germany
Compare free and travel credit cards available to residents in Germany.
Fixed deposit FAQ
What is a fixed deposit (Festgeld) in Germany?
A fixed deposit, called Festgeld in German, is a savings account where you lock a fixed sum away for an agreed term, from a few months up to ten years, in return for an interest rate that is fixed for the whole period. Unlike an instant-access savings account (Tagesgeld), the rate cannot change during the term and you cannot normally withdraw the money before maturity.
What interest rates can I currently get on a fixed deposit?
As of September 2026, the best one-year fixed deposits listed on German rate trackers pay roughly 3.1 to 3.55 percent per year, while most mainstream banks pay less. Rates for other terms vary by bank. They follow the European Central Bank, whose deposit facility rate has stood at 2.25 percent since 23 July 2026, so always check the live effective rate before you apply.
Is my fixed deposit protected if the bank fails?
Yes. Deposits at banks covered by the statutory German deposit guarantee scheme are protected up to 100,000 euro per customer per bank under the Deposit Guarantee Act (Einlagensicherungsgesetz), supervised by BaFin. If you hold more than that, splitting the money across several banks keeps each balance within the limit.
Can I open a German fixed deposit as an expat?
Generally yes, if you are legally resident in Germany and have a German current account and tax ID. Some banks accept applicants resident elsewhere in the EU through deposit marketplaces. You will usually verify your identity by VideoIdent or PostIdent, and interest is reported for German tax once you are tax resident here.
Can I withdraw my money before the term ends?
Usually not. The defining feature of a fixed deposit is that the money is tied up for the agreed term. Some banks allow early access in hardship cases, but this often means losing part or all of the accrued interest. Only commit money you are confident you will not need, and keep a separate emergency buffer in instant-access savings.
How are fixed deposit interest earnings taxed?
Interest is subject to German flat-rate capital gains tax (Abgeltungsteuer) of 25 percent plus the solidarity surcharge, so about 26.4 percent in total, plus church tax if applicable. You can shelter up to 1,000 euro of investment income per year (2,000 euro for jointly assessed couples) by giving your bank an exemption order (Freistellungsauftrag).
Should I choose a shorter or a longer term?
A shorter term keeps you flexible to reinvest if rates rise, while a longer term locks in todays rate in case rates fall. Many savers split the amount across several terms, a so-called interest ladder, so part of the money matures each year. The right choice depends on when you expect to need the money.
What is the difference between Festgeld and Tagesgeld?
Festgeld (fixed deposit) ties money up for a set term at a guaranteed rate and usually pays more. Tagesgeld (instant-access savings) lets you withdraw any time but the rate can change at short notice. A common approach is to keep an emergency fund in Tagesgeld and place money you will not need soon in Festgeld for the higher fixed return.
Sources
- BaFin — deposit protection
- Deposit Guarantee Act (Einlagensicherungsgesetz)
- Deutsche Bundesbank — MFI interest rate statistics
- Verbraucherzentrale — saving and investing
- Finanztip — fixed deposit guide
- Check24 — Festgeld comparison
- Verivox — Festgeld comparison
- European Central Bank — key ECB interest rates
Last updated: 1 September 2026 · By checkeverything.de Redaktion