The ECB is keeping the key interest rate stable for the time being. In June, interest rates will begin to fall for the first time. If you buy a fixed-term deposit now, you can secure good interest rates in the long term. The most important thing at a glance.
A forecast from the Deutsche Bundesbank painted a hopeful picture for the German economy at the end of last year. Despite initial delays in the recovery, external braking factors such as weak foreign demand and increased financing costs, a growth path was expected for 2024. This appears to have happened so far. At the same time, the wave of inflation appears to be leveling off and interest rates remain stable for the time being.
Central banks such as the ECB analyze a variety of data and indicators before making decisions on interest rate policy. Their measures are usually based on a comprehensive assessment of the current economic situation and expected future developments. The indicators include, among others:
The German economy is showing several indicators of falling interest rates. This could also be a positive signal for long-term savers, as the persistently high level of interest rates has so far been accompanied by a large range of daily and fixed-term deposits. While the daily money offers come with short guarantees and are sometimes limited to new customer campaigns, savers can secure the currently high interest rates in the long term with a fixed-term deposit product. If interest rates fall as expected, fixed-term deposit investors have the prospect of higher real interest rates than overnight deposit investors.
The best European fixed-term deposit offers with terms of two to five years currently yield up to 3.7 percent. Overnight money and broker interest rates have worked their way up to 4 percent in the course of the overnight money race in the last year, but they come with short guarantees or, like Trade Republic’s interest rate offer, can be reduced at any time with just two weeks’ notice. Given the forecast of falling interest rates, fixed-term deposit investors could benefit from significantly higher real interest rates than overnight deposit investors.
If you would like to secure the current top interest rates in Europe and an additional bonus, you can easily open a fixed-term deposit account via the Weltsparen portal.
It is generally a smart move to compare current fixed deposit offers and see whether they fit your financial strategy. Take the opportunity to look at the various options and secure the best conditions for yourself. Visit the FOCUS fixed-term deposit comparison online to carry out a detailed comparison of fixed-term deposit accounts and to find out how you can benefit from the current interest rates.