What are Fixed-Term Deposits?

A term deposit is a banking product that allows an investor to deposit money for a fixed period at a fixed rate of interest. At the end of the term, the investor gets his money back, plus any interest accrued.

There is a large market for fixed-term deposits in the EU. A wide variety of deposit terms, currency choices, conditions and other aspects allow investors to choose the best offer.

At PickTheBank we analyse data from 25 EU countries, over 1,000 banks and over 11,000 offers daily to provide the most up to date information for our users interested in opening a term deposit.

In addition, EU citizens can open term deposits online with banks in other EU countries to get even better interest rates than in their home market.

How do Fixed-Term Deposits Work?

The way term deposits work is quite simple.
You choose a bank and an offer, then decide how much money you want to invest and for how long. The bank will pay you a fixed rate of interest for the whole term of the deposit.

This interest can be paid monthly, quarterly, or at the end of the term together with the principal. The exact terms depend on the bank and the type of term deposit you choose.

This means that you know in advance how much money you will receive at the end of the term, making term deposits a predictable and safe investment.

For Example

You want to invest €100,000 in term deposits.
You go to the PickTheBank website and choose the most profitable and suitable term deposit.
You choose a term deposit with a rate of 4.33% for 12 months and open it.
After one year, you will get back your €100,000 + a return of €4330.

Why Invest in Fixed-Term Deposits?

According to the ECB, the inflation rate in the EU is quite high, although there are preconditions for its reduction. This means that prices for goods and services in the EU are rising much faster than household incomes.

To fight inflation, the European Central Bank raised the deposit rate to a record high of 4% on 20 September 2023.

Although there is now the possibility of a deposit rate cut, term deposits are one of the most attractive ways for people to keep their money, along with savings deposits.

The Advantages of Investing in Fixed-Term Deposits

Guaranteed income: term deposits offer a guaranteed income, paid to the investor in accordance with the terms of the agreement. Investors know in advance how much interest they will earn on their deposit, ensuring a stable income throughout the term of the deposit.

Reliability and security: Deposits in EU banks are protected by the Deposit Guarantee Scheme (DGS), which guarantees the repayment of funds in the event of bank failure or other exceptional circumstances. The amount of cover can be up to €100,000 per depositor in a bank. That's the main difference between fixed-term deposits and various types of investment products, which are more or less exposed to market and credit risks.

Ease of opening and accessibility: Opening a fixed-term deposit does not require any special knowledge or skills. Simply select a fixed-term deposit according to your criteria and follow a straightforward process to open it. Most EU banks offer the option of opening a deposit online or via a mobile application.

Easy fixed-term deposit selection: Analysing offers from over 1,000 banks in EU countries is no easy task, especially with frequent interest rate updates.

Tax advantages: In some EU countries, such as Belgium, Italy, Portugal and others, there are tax benefits on income from fixed-term deposits that can reduce or exempt individuals from paying income tax. The best way to find out the latest information on this is to contact the bank where you want to open a term deposit.

How Do You Find and Open the Best Fixed-Term Deposit

PickTheBank makes this task easy with a range of tools and resources. These resources will help you find the best deal that suits your financial goals.

How to Compare Term Deposits and Choose the Best Offer

Our service allows you to choose the best term deposits for your needs from the comfort of your own home:

Country of residence: We analyse and present offers from banks in 26 eurozone countries.
Currency: You can explore bank offers in all major currencies, including EUR, USD, GBP
Deposit term: We present bank offers with terms from 1 month to 6 years
Type of deposit: Ordinary Deposit, Subordinated Deposit, Investment Deposit, Deposit with Additional Conditions, Deposit offered by a branch of a bank from outside the EU, Credit Note

How to Open a Fixed-Term Deposit online with PickTheBank

Are you wondering how to open a term deposit with PickTheBank if you're a resident of the EU?

It's as easy as 1, 2, 3:
Select your desired search criteria and click "Find Deposit".
Compare fixed deposit offers and click "Open Online".
You'll be taken to the bank's website to complete the deposit process

We don't collect any user data; we are an information resource to help you make an informed choice about fixed-term deposits.

Safety of Opening Fixed-Term Deposits

Is it Safe and Legitimate to Open a Term Deposit Online?

The demand for remote onboarding and online banking products has grown rapidly during the COVID outbreak. Now the process of opening a term deposit online is straightforward and legitimate. It's regulated by EBA guidelines EBA/GL/2022/15, which impose security measures and requirements on banks implementing online onboarding business processes. Online onboarding is usually carried out using video identification/selfies, where the customer's identity is confirmed during the identification process. Online onboarding is widely used and is already implemented in approximately 40% of European retail banks.

Simplicity and Convenience

Opening a term deposit online allows you to choose the best bank and the most competitive deposit rates from a wide range of offers in the European market. Without leaving your home, you can compare terms, rates and other parameters from different banks in eurozone countries using just a smartphone or any internet-connected device. This saves you time and effort while giving you control over your finances in a convenient and accessible way.

Strict Regulation and Supervision

The EU financial sector is highly regulated. It is supervised and regulated by national financial authorities and the European Central Bank (ECB). This ensures a high level of protection for customers and their deposits. Standards and regulations are in place to ensure that banks follow strict rules and handle customer funds with the utmost care.

Advanced Data Protection Technologies

Modern data protection technologies provide a high level of security. Banks and banking services use advanced encryption, authentication and verification methods to ensure that your data and finances are protected from third party access or fraud. It's important to note that European countries strictly regulate the collection, storage and use of personal data in accordance with the law, including compliance with the General Data Protection Regulation (GDPR), which provides an additional layer of protection.

Trustworthiness

Most banks and banking services in the EU have been around for a long time and enjoy a high level of trust from their customers. By choosing a bank with a good reputation, you will increase your confidence in the services provided by that bank or banking service when opening an online fixed-term deposit.

Deposit Guarantee Scheme (DGS)

The Deposit Guarantee Scheme (DGS) is a system designed to protect depositors and insure their funds held in banks or financial institutions. It acts as a safety net, ensuring a level of protection for individuals and businesses in the event of bank failure or insolvency. In the European Union (EU), each Member State has its own Deposit Guarantee Scheme, usually set up and regulated by national authorities in accordance with EU directives. This system ensures the safety of you, your data and your money.

This ensures that you, your information and your funds remain safe. In addition, the ability to open term deposits online streamlines the process, making it faster and more cost effective. It allows you to open term deposits more advantageously by selecting the most profitable and suitable offers.

How Do I Find a Fixed-Term Deposit?

Find the best offers on the term deposit search and comparison page.
Here you will find only the latest offers from over 1000 EU banks!