Anyone who wants to invest their money safely is often faced with the decision: Daily deposit or fixed-term deposit?
Both forms of investment offer security and are particularly popular with conservative savers. But they differ in important points such as flexibility, interest rate and term. While daily deposits score points with constant availability, fixed-term deposits often offer higher interest rates – but at the expense of flexibility.
In this guide, we will help you make the right choice for your financial goals.
We will show you the advantages and disadvantages of daily money and fixed-term deposits, explain who is suitable for which type of investment, and give practical tips on how you can maximize your returns. Regardless of whether you want to save in the short term or build wealth in the long term – with the right knowledge you can make the right decision.
Daily money: Flexible and secure for your savings
The current account is one of the most popular forms of investing.
It offers you maximum flexibility because your money is available at any time. You can deposit or withdraw amounts as you wish without being bound to fixed terms. This makes overnight money particularly attractive for short-term reserves.
The interest rates are usually set variable. This means that banks can adjust the interest rate depending on the market situation. Attractive promotional interest rates are often offered to new customers, but these are limited in time. After this phase, the standard conditions apply, which are often lower.
Another advantage of daily money is security. Your deposits are protected up to 100,000 euros per customer by statutory deposit protection. Many banks offer even greater protection through additional security funds.
The daily money is particularly suitable for money that you want to park for a short time. For example, if you are saving for a major purchase or creating an emergency reserve. It’s simple, transparent and risk-free – ideal for anyone who wants to remain flexible.
Fixed-term deposit: Plannable interest rates for your savings goal
A fixed-term deposit account is the right choice if you want to invest your money securely for a specific period of time. In contrast to daily money, time deposits are tied to a fixed term – often between one month and several years. During this time, your money will not be available, which requires planning.
The advantage: You receive a fixed interest rate that is guaranteed for the entire term. This gives you planning security. As a rule, fixed-term deposits offer higher interest rates than call money, especially with longer terms. The longer you tie up your money, the more attractive the conditions usually are.
You also benefit from statutory deposit insurance with fixed-term deposits. Your deposits are protected up to 100,000 euros per customer. This gives you security, regardless of the interest rate.
The fixed-term deposit is particularly suitable if you do not need your money in the long term and would like to benefit from stable interest rates. It is ideal for allowing savings to grow in a predictable manner with little risk. However, you should check carefully beforehand whether you can do without the money during the term – early withdrawal is usually not possible.
Daily money or fixed-term deposit: When do you choose which form of savings?
The decision between a daily deposit and a fixed-term deposit depends entirely on your personal goals and needs. Both forms of investment offer security, but they differ primarily in flexibility and interest rates. Here you can find out when which option is right for you.
When is daily money the better choice?
Call money is ideal for short-term reserves or as a flexible cash reserve. If you want to access your money at any time without being tied to fixed terms, overnight money is the right solution. It offers you:
- Maximum availability: You can deposit or withdraw amounts at any time.
- Security: Your deposits are protected by statutory deposit insurance.
- Simplicity: No risk, no hidden conditions.
Daily money is particularly suitable if you want to park savings for emergencies, a larger purchase or as a temporary solution. Please note, however, that the interest rates are variable and are often lower than with fixed-term deposits.
When should you choose a fixed-term deposit?
Fixed-term deposits are the right choice if you don’t need your money for a fixed period of time and want to benefit from higher, guaranteed interest rates. This form of savings offers:
- Plannable income: The interest rate remains the same throughout the entire term.
- Higher interest rates: Fixed-term deposits often offer better conditions than overnight deposits, especially for longer terms.
- Security: Here too, the statutory deposit insurance applies up to 100,000 euros.
Fixed-term deposits are ideal for money that you want to invest for the longer term, for example as part of your wealth creation or to securely plan future expenses. Important: Your money will not be available during the term, so you should make sure you don’t need it urgently.
Which type of savings is right for you?
If you need short-term flexibility, choose call money. On the other hand, if you know that you won’t need your money for a while, a fixed-term deposit is the better choice to benefit from stable interest rates. Many savers use a combination of both: They invest part of the money flexibly in a current account and tie up the rest in a long-term fixed-term deposit – this way they get the best of both worlds.
Example: This is how you can optimally combine daily money and fixed-term deposits
Mr. Meier has 20,000 euros at his disposal and would like to invest the money safely. He is faced with the question of how he should distribute the capital sensibly. His requirements are clear: part of the money should remain flexible in order to be able to react to unforeseen expenses. He would like to invest the larger part in the longer term in order to benefit from better interest rates.
Mr. Meier’s plans in detail:
- Short-term reserve: Mr. Meier would like to park 5,000 euros as a security reserve. This money should be available at all times in case he has unexpected expenses, such as a car repair or a new washing machine.
- Long-term planning: He would like to invest the remaining 15,000 euros safely because he will only need this money in three years for the down payment on a new car. It is important to him that the interest is guaranteed and he doesn’t have to worry about anything.
The solution: combination of daily money and fixed-term deposit
In order to achieve his goals, Mr. Meier opts for a mixture of daily money and fixed-term deposits. This strategy allows him flexibility for short-term needs and at the same time a predictable return for the long-term part.
Step 1: 5,000 euros in your daily money
- Why? The current account is perfect for short-term reserves, as Mr. Meier can access the money at any time. There are no fixed terms or notice periods, and deposits are protected by statutory deposit protection up to 100,000 euros.
- Interest charges: The interest rate is variable, in this example we assume that Mr. Meier receives 0.5% pa. Although the return is not high, Mr. Meier appreciates the flexibility.
Step 2: 15,000 euros in a fixed-term deposit
- Why? For his long-term savings goal, Mr. Meier chooses a fixed-term deposit account with a term of three years. Here he benefits from a fixed interest rate that is significantly higher than with overnight money. Since he doesn’t need the money during this period, the commitment doesn’t bother him.
- Interest charges: In this example, the interest rate is 2.0% pa, which enables a stable and predictable return.
Yield after three years: The difference is noticeable
Here you can see how Mr. Meier’s decision pays off financially:
| Amount | interest rate (pa) | Duration | Yield after 3 years | |
|---|---|---|---|---|
| daily allowance | €5,000 | 0.5% | 3 years | 75€ |
| Fixed deposit | €15,000 | 2.0% | 3 years | 900€ |
| In total | €20,000 | – | – | 975€ |
- With the daily allowance, Mr. Meier remains flexible and can cover unexpected expenses at any time.
- The fixed-term deposit guarantees him an attractive return because he is guaranteed to receive the higher interest rate for the entire term.
Mr. Meier made a wise decision with the combination of daily money and fixed-term deposit.
The overnight deposit ensures financial flexibility, while the fixed-term deposit offers a reliable return. This mix is particularly suitable for savers who want to achieve short-term security and long-term growth at the same time – easily, safely and without unnecessary risks.
Daily money or fixed-term deposit: How high are the interest rates?
The level of interest is one of the most important factors when it comes to choosing between a call money and a fixed-term deposit.
Both forms of investment offer security, but differ significantly in their interest rates. The current market situation, the chosen term and flexibility play a crucial role.
How high are the interest rates on overnight money?
With overnight money, interest is usually the same variablethat is, they can change at any time.
The interest rates of many banks are currently in the range of 0.5% to 3% pa – depending on the bank and the current market situation. Banks often offer for New customers higher promotional interest rates that are limited in time, e.g. B. for three or six months.
- Example: A current account with an interest rate of 2.5% pa An investment amount of 10,000 euros will give you 250 euros in interest in one year. However, after the promotional period has expired, the interest rate may decrease, meaning the return will be lower.
Call money is particularly suitable for short-term reserves, as you can access your credit at any time – even if the interest rates are slightly lower than with fixed-term deposits.
How high are the interest rates on fixed-term deposits?
Fixed-term deposits usually offer higher interest rates as a daily money, because you decide on a fixed term and forego flexibility.
The interest rates depend on the term chosen. The interest rates for fixed-term deposits are currently in the range of 1.5% to 4.5% paalthough longer terms usually have better interest rates.
- Example: If you have 10,000 euros for three years at an interest rate of 3% pa you will receive after three years 900 euros interest – guaranteed. However, the money remains tied up during the term and you cannot withdraw it early.
Fixed-term deposits are therefore suitable for long-term savings goals where you can forego the money invested over a certain period of time.
Daily deposits vs. fixed-term deposits: A comparison
| daily allowance | Fixed deposit | |
|---|---|---|
| Interest charges | 0.5% to 3% (variable) | 1.5% to 4.5% (fixed) |
| flexibility | Available at any time | No availability during term |
| Duration | No fixed term | Fixed term (e.g. 1-5 years) |
| Interest credit | Usually monthly or annually | At the end of the term or annually |
| Suitable for | Short-term reserves | Long-term savings |
Conclusion: Daily money and fixed-term deposits in comparison – which form of savings is right for you?
Call money and fixed-term money each have their strengths and weaknesses.
While daily money scores with flexibility, fixed-term money offers higher and predictable interest rates. Your choice depends on whether you want to remain flexible in the short term or achieve a higher return in the long term. A combination of both forms of savings is often worthwhile.
Daily deposits vs. fixed-term deposits: an overview of the most important differences
| daily allowance | Fixed deposit | |
|---|---|---|
| Interest charges | 0.5% to 3% (variable) | 1.5% to 4.5% (fixed, depending on the term) |
| flexibility | Available at any time | Not available during term |
| Duration | No fixed term | Fixed terms (e.g. 3 months to 5 years) |
| Interest credit | Often monthly or quarterly | Annually or at the end of the term |
| Security | Statutory deposit protection up to 100,000 euros per customer | |
| Suitable for | Short-term reserves, emergency reserve | Long-term savings, greater planning security |
Our tip: Take advantage of the advantages of both forms of savings. Invest part of your money in a current account to remain flexible at all times. You tie up the other part as a fixed-term deposit in order to benefit from the more attractive interest rates. This way you can ensure flexibility and a higher return at the same time.