What is Festgeld in Germany?

Festgeld is a fixed-term deposit account. You deposit a lump sum for a defined period — typically 3 months to several years — and receive a fixed interest rate for the entire term. You cannot access the money before maturity without penalty. In return, the rate is higher than a Tagesgeld (flexible savings) account and guaranteed for the full term.

What are the best Festgeld rates in Germany in 2026?

As of June 2026, the best rates for 12 months are around 3,08 % p. a. via platforms like Raisin, which aggregates offers from European partner banks. For shorter terms (6 months), top rates reach around 2,76 % p. a. For longer terms (2–3 years), 3,00 % to 3,04 % p. a. are achievable. German domestic banks typically offer slightly lower rates than EU partner banks accessible via Raisin.

Can I withdraw from a Festgeld account early?

Generally no. Fixed-term deposits in Germany are contractually locked for the agreed term. Early withdrawal is typically only possible in exceptional circumstances — account holder's death, insolvency, or severe social hardship. Some providers offer a Flexgeld product with limited early access at a slightly lower rate. Plan carefully: only lock money you are certain you will not need during the term.

What is Raisin and how does it work for Festgeld?

Raisin (formerly WeltSparen) is a German savings platform that aggregates Festgeld and Tagesgeld offers from over 150 European partner banks. You open one account at Raisin Bank (Frankfurt) and can then invest in fixed-term deposits from banks across the EU — all without opening separate accounts at each bank. All deposits remain protected under their respective EU member state's deposit guarantee scheme (up to €100,000 per bank).

Is it safe to use a non-German bank for Festgeld?

Yes, within limits. The EU Deposit Guarantee Schemes Directive requires all EU member states to protect deposits up to €100,000 per customer per bank. This means a Festgeld at a Lithuanian, Estonian, or French bank accessed via Raisin is covered up to €100,000 under that country's scheme. The protection level is the same as Germany; the practical difference is that claiming from a foreign scheme can take slightly longer in the event of a bank failure.

What is the Festgeld laddering strategy?

Festgeld laddering (Laufzeitenstaffelung) means dividing your savings across multiple fixed-term deposits with different maturity dates — for example, splitting €30,000 into €10,000 each at 6 months, 12 months, and 24 months. As each tranche matures, you reinvest it at the then-current rate. This balances the higher rates of longer terms with the flexibility of having part of your savings accessible in the near future.

Fixed-Term Deposits in Germany (Festgeld) 2026 – Best Rates for Expats

What is Festgeld?

Festgeld is Germany's term for a fixed-term deposit — also called a fixed-rate savings account or time deposit. You agree with a bank to deposit a lump sum for a defined period: typically 3, 6, 12, or 24 months, though terms from one month to ten years exist. In return, the bank pays you a fixed, guaranteed interest rate for the entire duration. When the term expires (Fälligkeit), you receive your deposit back plus the accrued interest.

The key difference from a Tagesgeld (flexible savings account) is the trade-off between rate and access: Festgeld typically offers a higher rate, but you cannot withdraw the money before the term ends without facing penalties or losing accrued interest. The rate is fixed at the outset — it does not change with ECB decisions during the term, which is a significant advantage when interest rates are falling.

Tagesgeld vs. Festgeld at a glance

Feature	Tagesgeld (flexible)	Festgeld (fixed-term)
Interest rate	Variable — follows ECB	Fixed for the entire term
Access to funds	Any time, 1–2 day transfer	Locked until maturity
Typical rate (June 2026)	1,00 %–2,00 % (ongoing)	2,76 %–3,08 % (12 months)
Rate protection if ECB cuts	No — rate drops too	Yes — rate stays fixed
Best use	Emergency fund, short-term savings	Medium/long-term savings with fixed goal
Minimum deposit	Often none	500 €–5.000 € depending on bank
Deposit insurance	100.000 € per bank (EU)	100.000 € per bank (EU)

Why Festgeld is particularly attractive right now

The ECB has cut its deposit rate multiple times since mid-2024, and Tagesgeld rates have followed. A Festgeld account opened today locks in today's rate for the full term — so if the ECB cuts again in late 2026 or 2027, your Festgeld keeps earning the rate you agreed to at opening. This "rate lock" is the core reason to choose Festgeld over Tagesgeld when you have money you will not need for 12 months or more.

Festgeld interest calculator

How much will your Festgeld earn?

Deposit amount (€)

Interest rate (% p. a.)

Term

Gross interest

616,00 €

Tax (26,375 %)

-162,47 €

Net interest

453,53 €

Total at maturity

20.453,53 €

Simplified calculation (no compound interest for single-payment terms). Tax applies above the annual Sparerpauschbetrag (1.000 € single / 2.000 € couple). Submit a Freistellungsauftrag to avoid automatic withholding.

Where to get the best Festgeld rates in 2026

German domestic banks often offer lower Festgeld rates than EU partner banks accessible via platforms like Raisin. The difference can be 0,5 to 1 percentage point on the same term — which on a 20.000 € deposit over 12 months represents 100 € to 200 € in additional gross interest. Using a platform that aggregates EU-wide offers gives expats access to the full competitive market with a single account.

Raisin (formerly WeltSparen)

Best platform — 150+ EU banks in one account

Top recommendation English available

6 months

2,76 %

12 months ★

3,08 %

24 months

3,04 %

Raisin (formerly known as WeltSparen, rebranded in August 2025) is Germany's largest savings platform, connecting German savers to Festgeld and Tagesgeld products from over 150 European partner banks. The concept: open one account at Raisin Bank (a Frankfurt-based bank with BaFin licence), and then invest in fixed-term deposits from banks across the EU — without opening accounts at each bank individually. Every deposit remains in your name and protected under the respective EU country's deposit guarantee scheme (up to 100.000 € per bank). Interest rates are typically higher than German domestic banks because the partner banks are competing for deposit funding from German savers.

For expats, Raisin is particularly practical: account opening works entirely online with VideoIdent, the platform offers English-language support, and you can manage multiple Festgeld deposits across different banks and terms from a single dashboard. When one term expires, the funds return to your Raisin clearing account and you can reinvest with a few clicks — no new identity checks required.

Access to 150+ EU partner banks in one account
Best market rates for most terms
100 % online opening, VideoIdent
No fees for the Raisin account itself
Easy reinvestment at maturity
German IBAN for all deposits

Partner bank DGS varies by country
Interest paid at maturity (not monthly)
Requires German Anmeldung
Auto-renewal trap if maturity date missed

Watch the auto-renewal deadline

Many Raisin partner banks automatically roll over the deposit into a new term if you do not cancel within 3–5 calendar days before maturity. Mark your maturity date in your calendar and log in to Raisin in the week before to review options. Raisin sends email reminders, but confirming the action yourself is safer.

Open Raisin account

Bank of Scotland (Germany)

German deposit insurance — solid rates for 12 months

German BaFin / DGS Direct account

3 months

2,10 %

6 months

2,30 %

12 months ★

2,50 %

Bank of Scotland GmbH operates in Germany under its own BaFin banking licence and German deposit guarantee — the same protection as any German bank. Rates are somewhat lower than the best Raisin offers, but for savers who prefer dealing with a single bank on German soil, Bank of Scotland is a solid, transparent choice. Account opening is fully online via VideoIdent or Deutsche Post Ident. The Festgeld is available in 4 terms (3, 6, 9, and 12 months). No mobile app — account management is via web interface only.

German BaFin licence and German DGS
Simple, transparent product
Online opening with VideoIdent

Rates below Raisin best offers
No mobile app
Maximum term 12 months

Open Bank of Scotland Festgeld

1822direkt

Best German-bank Festgeld for longer terms

German DGS + voluntary fund

6 months

2,00 %

12 months

2,30 %

24 months

2,55 %

1822direkt is the direct bank subsidiary of Frankfurter Sparkasse and one of the few German domestic banks offering competitive rates across multiple terms up to 24 months. Minimum deposit is 5.000 €. To open a Festgeld, you first need a free 1822direkt Tagesgeld account (or Girokonto) as the reference account — this is opened automatically if you do not have one. The bank is part of the German savings bank group (Sparkassen-Finanzgruppe) and participates in the full German statutory and additional voluntary protection schemes.

German bank, German protection
Competitive rates for 24-month terms
Sparkassen backing (very stable)

Minimum deposit: 5.000 €
Rates below Raisin best
German-language interface

Open 1822direkt Festgeld

Festgeld rates at a glance — all terms (June 2026)

Provider	6 months	12 months	24 months	Min. deposit	DGS
Raisin (best rate via platform)	2,76 %	3,08 %	3,04 %	Varies (often 1 €)	EU partner country
Bank of Scotland (DE)	2,30 %	2,50 %	n/a	2.500 €	🇩🇪 German
1822direkt	2,00 %	2,30 %	2,55 %	5.000 €	🇩🇪 German
DKB Festgeld	1,80 %	2,10 %	2,20 %	5.000 €	🇩🇪 German
Bigbank (via Raisin)	2,60 %	2,90 %	2,95 %	1.000 €	🇪🇪 Estonian
Klarna (via Raisin)	2,55 %	2,80 %	2,75 %	1 €	🇸🇪 Swedish
TF Bank (via Raisin)	2,40 %	2,52 %	2,50 %	1 €	🇸🇪 Swedish

Rates as of 2 June 2026. Fixed rates guaranteed for the stated term. Individual terms and minimum deposits vary; verify all conditions directly with the provider before opening.

The laddering strategy — how to stay flexible while earning more

The main objection to Festgeld is "what if I need the money?". The laddering strategy (Laufzeitenstaffelung in German) answers this. Instead of locking all your savings in one long-term deposit, you split the total across several shorter deposits with staggered maturity dates. As each tranche matures, you reinvest it — either at the current market rate or into a longer term if rates are attractive.

Example: 30.000 € split into three tranches

Tranche 1 — 10.000 € @ 2,76 % for 6 months Matures: December 2026

Accessible Dec 2026 · ~138 € gross

Tranche 2 — 10.000 € @ 3,08 % for 12 months Matures: June 2027

Accessible Jun 2027 · ~308 € gross

Tranche 3 — 10.000 € @ 3,04 % for 24 months Matures: June 2028

Accessible Jun 2028 · ~608 € gross

Total gross interest: approximately 1.054 € — with access to one third of the savings every 6–12 months. When Tranche 1 matures in December 2026, you can reinvest into a new 24-month term and extend the ladder further.

Recommended term for 2026

Consumer finance analysts and rate comparison sites consistently recommend 12- to 24-month terms in the current environment. Longer terms (3–10 years) are available at slightly higher rates, but tie up capital for a long period in an uncertain rate environment. Shorter terms (3–6 months) miss the rate premium offered by 12-month products. The 12-month sweet spot captures competitive rates while maintaining reinvestment flexibility within a year.

How to open a Festgeld account as an expat

Festgeld accounts do not require a Schufa check — they are savings products, not credit. The standard requirements are a German address (Anmeldung), a valid ID or passport, a German reference account (Referenzkonto) to transfer funds, and a tax identification number (Steueridentifikationsnummer). Most platforms support fully online application with VideoIdent.

Open a Girokonto first (if you do not have one)

Every Festgeld account needs a reference account (Referenzkonto) — a German IBAN from which you transfer the deposit and to which the matured amount is returned. C24 or DKB are the standard recommendation: free, fast, no Schufa for EU citizens. Open the Girokonto first.

C24 Bank DKB

Compare rates and choose term

Use Raisin to compare current Festgeld offers across EU banks. Filter by term, minimum deposit, and country. Check the deposit guarantee scheme of the partner bank. For 12-month terms, Raisin currently shows top rates around 3,08 % p. a.

Open your account with VideoIdent

Most platforms open the account entirely online. You verify your identity via a short video call (VideoIdent) or at a Deutsche Post Ident location. The process takes about 15–20 minutes. You will need your passport or ID, a German mobile number, and your Steueridentifikationsnummer.

Transfer the deposit and submit your Freistellungsauftrag

Transfer your deposit amount from your Girokonto to the Festgeld account. Simultaneously, submit a Freistellungsauftrag to the Festgeld provider — allocate part of your 1.000 € annual Sparerpauschbetrag to this account so interest up to that threshold is paid tax-free.

Mark the maturity date and plan reinvestment

Put the maturity date (Fälligkeitsdatum) in your calendar — 2 weeks before the date, log in to review the auto-renewal terms. If the new rate is attractive, roll over; if not, transfer to a better-rated account. At Raisin, you can switch between partner banks without new identity checks.

Start comparing at Raisin

Deposit protection — Germany vs. EU partner banks

Every EU member state operates a national deposit guarantee scheme (DGS) covering at least 100.000 € per customer per bank — this is EU law under the Deposit Guarantee Schemes Directive (2014/49/EU). Whether your Festgeld is at a German bank or a Lithuanian bank accessible via Raisin, the protection amount is the same. The practical difference is speed: German DGS claims are processed within 7 working days; claims to foreign DGS bodies can theoretically take longer and may require some navigation if you do not speak the language.

German banks (Bank of Scotland DE, 1822direkt, DKB)

German statutory DGS (EdB or Sparkassen-DGS)
Additional voluntary BdB fund for private banks
Claims handled in German by German institution
7 working day payout guarantee

EU partner banks via Raisin (Klarna, TF Bank, Bigbank…)

100.000 € per bank — same EU standard
Swedish, Estonian, French DGS — all EU-compliant
Claims via foreign DGS (may take longer)
Raisin provides documentation support in German

Keep deposits under 100.000 € per bank

If you invest 120.000 € in Festgeld at a single bank and that bank fails, the protection covers only 100.000 €. The excess 20.000 € becomes an unsecured creditor claim. For amounts above 100.000 €, split across multiple banks to stay within the protected threshold at each. Via Raisin, you can hold deposits at several different partner banks simultaneously from a single dashboard.

Frequently asked questions

Generally no. Fixed-term deposits in Germany are contractually binding for the full term. Early termination is typically only accepted under exceptional circumstances — account holder's death, bankruptcy, or severe social hardship requiring social benefits. Some banks may offer early exit with a penalty (loss of some or all accrued interest). The practical lesson: only put money into Festgeld that you are certain you will not need during the term. This is exactly why keeping an emergency fund in a Tagesgeld account alongside your Festgeld makes sense.

When the term expires, the bank either transfers the principal plus interest back to your reference account, or (very commonly) automatically rolls over into a new term at the then-current interest rate. Auto-renewal is the default at many banks. To avoid being locked in at an unfavourable new rate, check the cancellation deadline — typically 3 to 5 calendar days before maturity. Raisin sends reminder emails; still worth setting a personal calendar reminder. If you miss the deadline, you are usually committed to the new term.

Raisin is a BaFin-supervised platform whose banking transactions run through Raisin Bank AG, a Frankfurt-based licensed bank. Your deposits are held in your name at the partner bank — not on Raisin's balance sheet. If Raisin itself had financial difficulties, your deposits at partner banks would not be affected. The protection at each partner bank is the EU standard 100.000 € per customer under the relevant country's DGS. Raisin has been operating since 2013 and has processed over 50 billion euros in deposits across Europe. It is one of the best-reviewed fintech platforms in Germany.

For most expats, the practical answer is: use Raisin and choose whichever bank offers the best rate for your term, regardless of country — as long as the country is a stable EU member with a well-functioning DGS (Sweden, Estonia, France, the Netherlands, and most Western European countries qualify). Avoid banks from countries with weaker sovereign financial positions if depositing larger amounts. For deposits well within the 100.000 € limit and at stable EU banks, the rate difference justifies using a foreign bank. If maximum simplicity and the highest possible protection are the priority, stick with German-domiciled banks (Bank of Scotland DE, 1822direkt, DKB) even at slightly lower rates.

It varies widely. Via Raisin, some partner banks (including Klarna and TF Bank) accept minimum deposits from 1 €, which makes Festgeld accessible to anyone. German domestic banks like 1822direkt and DKB typically require 5.000 € minimum. Bank of Scotland Germany requires 2.500 €. For smaller amounts (under 5.000 €), Raisin-partnered banks are the most accessible route into Festgeld in Germany.

No. Festgeld accounts are savings products — they involve no lending or credit risk to the bank, so no creditworthiness check is needed. You need a German address (Anmeldung), a valid ID or passport, and a German reference account. This makes Festgeld one of the most accessible savings products in Germany for recent arrivals who have not yet built a Schufa history.

Editorial verdict

Ringo Dühmke, Bankdaten.de

Festgeld makes most sense for money you will not need for at least 12 months and want to protect from further ECB rate cuts. The rate differential between Festgeld (3,08 % for 12 months) and typical ongoing Tagesgeld (2,00 %) is meaningful on larger amounts — the same 20.000 € earns roughly 216 € more in a 12-month Festgeld than in Trade Republic's 2,00 % account over the same period.

My practical recommendation: use Raisin for the best rates and broadest choice. Start with the 12-month term for the best risk-to-reward balance. Apply the laddering strategy if you have multiple tranches of savings so something matures regularly. Keep your emergency fund (3 to 6 months of expenses) in a Tagesgeld account separately — that money should never be in a Festgeld. Submit a Freistellungsauftrag immediately after opening. After the first term matures, reassess the rate environment and decide whether to stay at the same term, go longer, or return to Tagesgeld.