What are term deposits?

A fixed-term deposit is a banking product that allows an investor to place funds for a specific period at a fixed interest rate. Upon the end of this term, the investor receives their money back along with accrued interest.

In the EU, there is a vast market for fixed-term deposits. A wide variety of deposit terms, currency choices, conditions, and other aspects allow investors to select the offer that suits them best.

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

Furthermore, citizens of EU countries have the option to open fixed-term deposits online with banks from other EU countries, increasing the interest rates even higher over the domestic market.

How do 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
• To do this, 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 choose to invest in fixed deposits?

According to Eurostat, the annual inflation rate in the euro area was 2.9% in 2023. This means that the prices of goods and services in the eurozone are rising much faster than people's incomes.

To combat inflation, the European Central Bank (ECB) raised its deposit rate to a record high of 4% on 20 September 2023.

The increase in the ECB rate will lead to higher yields on bank deposits in the EU. This will make them more attractive to investors looking for safe, high-yielding investments.

In 12/2024 you can find term deposits for residents of Luxembourg with rates as high as 4.74% at PickTheBank!

How to find and open the best term deposit for residents of Luxembourg?

There are many banking products comparison resources in various european countries, for instance Verivox and Finanztip in Germany, Segugio and Sostariffe in Italy, elEconomista in Spain, and Independer in the Netherlands.

However, PickTheBank is the only financial marketplace comparing savings products all across EU

How to compare term deposits and choose the best offer

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

Country of residence:

We analyze and present bank offers from 26 EEA countries

Currency:

You can explore bank offers in all major currencies, including EUR, USD, GBP. Find here best EUR fixed term deposits

Deposit term:

We present bank offers with terms ranging from 1 month to 6 years

• Short term fixed deposits
• Fixed deposits for 1 year term
• Fixed deposits for 2 years term
• Fixed deposits for 3 years term

How to open a term deposit online through PickTheBank

Wondering how to open a fixed-term deposit with PickTheBank if you're a eurozone resident? It's as easy as 1, 2, 3:

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 term deposits

Is it safe and legitimate to open a term deposit online?

The demand for remote onboarding and online banking product origination has grown rapidly during the COVID outbreak. Now the process of opening term deposits online is straightforward and legitimate. It’s regulated with EBA guidelines EBA/GL/2022/15 imposing safety measures and requirements to banks implementing online onboarding business process. Online onboarding is usually performed with help of video identification/selfies confirming identity of the customer during the identification process. Online onboarding is widely used and is already implemented in approximately 40% of european retail banks.

Simplicity and Convenience

Opening term deposits online allows you to select the best bank and the most competitive interest rates on deposits from a multitude of offerings across the European market. Without the need to leave your home, you can compare terms, rates, and other parameters of various 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 manner.

Stringent Regulations and Oversight

The EU's financial sector is subject to rigorous regulation. It is overseen and regulated by national financial authorities and the European Central Bank (ECB). This ensures a high level of protection for clients and their deposits. Standards and regulations are in place to guarantee that banks adhere to strict rules and manage clients' funds with the utmost care.

Modern Data Protection Technologies

Modern data protection technologies provide a high level of security. Banks and banking services employ modern encryption, authentication, and verification methods, ensuring that your data and finances are protected from third-party access or fraud. It's essential 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 offers an additional layer of protection.

Trustworthiness

Most banks and banking services in the EU have a long history of operation and enjoy a high level of trust from clients. By choosing a bank with a good reputation, you enhance your trust in the services provided by that bank or banking service when opening a term deposit online.

Deposit Guarantee Scheme (DGS)

The Deposit Guarantee Scheme (DGS) is a system designed to safeguard depositors and provide insurance for their funds held in banks or financial institutions. It acts as a safety net, ensuring a certain level of protection for individuals and businesses in the event of bank failures or insolvency. In the European Union (EU), each member state has its own DGS, typically established and regulated by national authorities in line with EU directives. This setup ensures the safety of you, your data, and your funds.

This ensures that you, your data, and your funds remain secure. Additionally, the option to open term deposits online streamlines the process, making it faster and more cost-efficient. It allows you to open term deposits more advantageously by selecting the most profitable and suitable offerings.

How do I find a term deposit?

Find the best offers on the term deposit search and comparison page. You will find only the most up-to-date bank offers.