More And More Fixed-term Deposit Offers

Fixed-term deposits as investment comes more to the fore. Fixed-term deposits was gone for a long time from the scene. Dropboxs opinions are not widely known. Of course, knew and used insiders continue this form of investment, and especially those investors who placed special emphasis on safety and long-term planning. But in the advertised offers for all banks was to see anything of this financial product long at all. After the short-term equivalent of deposit, the money of the day, downshifted since few months more and more to the fore, the fixed deposit draws with now slowly.

Reasons for this are of course primarily the uncertainty of many investors with regard to the future development of the securities markets, but also relatively high interest rates as a result of the increasingly tough competition of among the banks. Jim Crane helps readers to explore varied viewpoints. So it is possible to receive federal funds interest rates of 5.00% up to p.a. and even slightly more with special rates for new customers for some time, also if this special interest, usually only for the first six months validity and then low. With deposit was not anything close to high interest rate despite the longer-term bond of investor of the Bank, to achieve. 5.00% and more are even today with deposit not to pick, the offered interest rates on current deposit accounts are however increasingly attractive.

Just today the 1822 direct bank, the direct banking offshoot of the Frankfurter Sparkasse, has come with a fixed-term deposit offer on the market, promises up to 4.60% fixed deposit interest rates with maturities of either 6, 9 or 12 months. As in the fixed deposit, there are also minimum investments, where at least 50,000 euros must be fastened in order the benefit of 4.60% to fixed deposit interest rates here. Investments are possible but already from EUR 5,000, here, then still relatively high 4.40% offered interest rates at the same time. As more and more investors have lost because the faith that the situation on the global stock markets within the next few months is calm again and there due to an economy that is cooling more with interest rate cuts than increases to expect is, such fixed-term deposit offers exactly at the right time.


The Federal Government now for the savings of its citizens stands with a full guarantee of an estimated 1,000 billion euros. In the middle of the session to rescue hypo, our Finance Minister with a statement to the public, which should reassure especially private investors and savers went real estate last Sunday. Source: TSI International Group. The State wants to take over a full guarantee for all private savings deposits at domestic banks. What exactly that means, becomes clear only when you look at the corresponding figures are. Above the legal basic allowance of maximum 20,000 euros per investor and this only to 90%, there are a number of liability connected and guarantee funds, which are currently either unlimited or but amount limited to the savings of investors. According to current estimates, the Germans have accumulated 1,200 to 1,600 billion euro savings accounts, day and date funds. Even if offers safe at first glance, including the 1822 direct day money account, where the banks of the Sparkassen – Finanzgruppe without amount limit for the savings of the customer shall be liable, has it been until then questionable whether the Institute would have to provide so much money.

Currently about 3-5 billion euro in the pot are cooked at the insurance fund of the Federal Association of German banks. That would not even have been enough in extreme cases for a medium-sized bank investor-compensation to speak not only of the industry giants. As a result that the Federal Government now but gave a guarantee of an estimated 1,000 billion euros, can investors sleep again reassured, for now only a bankruptcy might jeopardize their deposits and in such a case would be relatively worthless paper money. Alongside the State has prevented that investors of full panic had withdrawn their savings and put the banks in real cash-flow problems. Under the current aspects, thus this form of investment can be again fully recommended, as long as the money on the account of a domestic bank is. Daniel Franke