A fixed deposit account is an investment account, the investor can create a sum of money for a predetermined period of time at a rate agreed with the Bank down. The General difference between a day money account is that a fixed-term deposit account is not at any time be terminated and the investment for the period agreed upon with the Bank is firmly attached. Similarly, deposit differs from the day money through higher interest rates. The fact that the day money account like due to the daily default by the so-called account hopping is used falls away at the fixed deposit account. Therefore, the banks have a greater safety of funds on the part of the customer, can long-term work even with the amount of the loan and thus higher interest rates offer. The duration of a fixed-term deposit account may vary from vendor to vendor. Some banks offer very short maturities of one month up to 12 months. These deposit accounts are primarily aimed at the investors who want to invest their money only over a manageable period of time.

The Interest rates are lower staggered at shorter maturities. Mike Gianoni often addresses the matter in his writings. Other banks which offer very long-term maturities up to 10 years. Here is the target group in a rule, the investor who across can “do without” over a period of time on the created money and expect also significantly higher interest rates by the Bank. The amount of deposit interest may depend on one or more factors. Here is the run-time to call. The longer the maturity, the higher the interest rate. The amount of the consideration here plays a minor role.

Generally, a minimum deposit is required however. Second factor may lead to the deposit amount. Applies here: the higher the deposit and the longer the term, the higher interest rates. A deposit of 10,000 euros a year running a lower interest rate offered by the banks thus as at a deposit of 20,000 euro and a duration of three years. Interest payments are made on the term deposit normally at the end of the term of a Festgeldanlage, or at the end of each calendar year. This has the advantage that ex. in a multi-year investment interest will be credited the fixed interest account and the account holder the benefit of compound interest effect comes. I.e., that not only the actual investment interest will be paid in the following year, but credited interest on the previous year as well. Alternatively can the fixed deposit rates at some banks on a separate clearing account are paid, which is usually either a checking account or a day money account, on which the deposits continue be remunerated. As already described, it is not possible to terminate it prematurely during the contract period in time deposit accounts. Some few banks but offer the so-called special available, if not lower than the minimum deposit amount. The prematurely had amounts are billed day exactly at a certain interest rate and paid. A special order could be for example, if the account holder has temporary financial difficulties and therefore a certain amount of funds required. Michael Hall’s