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Fixed Deposit Calculator

Calculate fixed deposit interest with annual payout, reinvestment, or maturity payment. With capital gains tax and comparison of interest modes.

Available

Inputs

Enter values

Live
€

The amount invested as fixed deposit.

Investment duration in months (e.g., 12, 24, 36).

%

The guaranteed annual interest rate of the fixed deposit.

€

Annual tax-free allowance for capital income.

Load example

For illustration only – your own calculation is what counts.

Explanation

How Fixed Deposit Calculator works

The fixed deposit calculator computes the return on a fixed deposit investment with selectable interest mode: annual payout (simple interest), annual reinvestment (compound interest), or payout at maturity.

Reinvestment (compound interest)K_end = K x (1 + r)^t

K = investment amount, r = interest rate as decimal, t = duration in years.

Annual payoutAnnual interest = K x r

With payout, the capital remains unchanged; interest is paid out annually.

Knowledge

Understanding fixed deposits

Basics, terms, and interest modes for fixed deposit investments.

Fixed deposit (also called term deposit) is an investment with a fixed term and guaranteed interest rate. Unlike overnight deposits, the money cannot be accessed during the term, but the interest rate is higher and guaranteed.

  • Fixed interest rate for the entire term — no interest rate risk.
  • Typical terms: 3, 6, 12, 24, 36, 48, or 60 months.
  • Deposit insurance up to EUR 100,000 per person and bank.
  • No early access — money is locked.
  • Higher rates than overnight deposits, but less flexibility.

Knowledge

The advantage of reinvestment

Why compound interest increases the return on a fixed-term deposit.

With annual reinvestment, the interest credited also earns interest in the following year. This compound-interest effect becomes noticeable over longer terms and at higher interest rates. At 3.5% and 5 years, this yields around 0.6% more total return compared with annual payout.

Practice

Practical examples

For illustration only – your own calculation is what counts.

EUR 10,000, 3.5%, 24 months, reinvestment

EUR 10,000 is invested as fixed deposit for 24 months at 3.5% p.a. with annual reinvestment.

Result: After 2 years, the final capital is approx. EUR 10,712 (interest approx. EUR 712 incl. compound interest).

12-month term€10,350.00
24-month term€10,712.25
36-month term€11,087.18

EUR 25,000, 3%, 36 months, annual payout

EUR 25,000 fixed deposit at 3% with annual interest payout (no compound interest).

Result: Annual interest payment: EUR 750. Total after 3 years: EUR 2,250 interest, capital remains EUR 25,000.

Interest paid at maturity€57,500.00
Interest reinvested€57,963.70

EUR 50,000, 4%, 12 months, with tax

EUR 50,000 fixed deposit for 12 months at 4% with capital gains tax (saver's allowance EUR 1,000).

Result: Gross interest: EUR 2,000. Taxable: EUR 1,000. Tax approx. EUR 264. Net approx. EUR 1,736.

Fixed deposit ladder: EUR 30,000 across 3 terms

EUR 30,000 are split EUR 10,000 each into 12, 24, and 36 months at 3%, 3.5%, and 3.8%.

Result: The 36-month tranche yields approx. EUR 11,183 (interest approx. EUR 1,183). The shorter terms yield less but money becomes available sooner.

EUR 20,000, 3.2%, 48 months, payout at maturity

EUR 20,000 fixed deposit for 48 months at 3.2% with payout of capital and interest only at maturity.

Result: At maturity approx. EUR 22,682 is paid out (interest approx. EUR 2,682 incl. compound interest).

Notes

Common mistakes

  1. Underestimating liquidity needs during the term

    Fixed deposits are not accessible during the term. Anyone needing their money early often loses all interest or pays a penalty fee. Only invest money that is definitely not needed.

    Only invest money as fixed deposit that is definitely not needed for the entire term. Keep the emergency fund separately in an overnight deposit account.

  2. Not checking automatic renewal

    Many banks automatically renew fixed deposits at current (often lower) conditions. Without timely cancellation or objection, the money is locked again for the same term — possibly at less favorable rates.

    Note the maturity date in your calendar and check the conditions or object in time before expiry.

  3. Not checking deposit insurance for foreign banks

    Fixed deposit offers from banks in other EU countries often provide higher rates. Deposit insurance is harmonized across the EU (EUR 100,000), but processing in an emergency can take longer and be more complicated.

    Before investing, verify that the bank is covered by EU deposit insurance and understand how processing works in an emergency.

  4. Confusing interest mode in calculation

    Payout (transferred annually), reinvestment (compound interest), and maturity payout (total payout at end) yield different results. Only reinvestment and maturity payout generate compound interest.

    Check the interest mode of the actual fixed deposit offer from the bank and set it correctly in the calculator.

  5. Ignoring rising interest rates during lock-in period

    Those who lock in fixed deposit at 3% for 5 years and market rates rise to 5% cannot switch. The opportunity costs (foregone additional interest) can be considerable.

    When uncertain about interest rate development, choose shorter terms or a fixed deposit ladder.

FAQ

Frequently asked questions

What is the difference between payout and reinvestment?

With annual payout, interest is transferred to a reference account — the fixed deposit remains unchanged. With reinvestment, interest is added to the fixed deposit and earns interest in the following year (compound interest). Reinvestment yields a higher final capital.

Can I terminate a fixed deposit early?

Generally not. Fixed deposits are locked for the agreed term. Some banks allow early termination subject to an early termination fee or forfeiture of interest.

Is fixed deposit safe?

Fixed deposits are protected by statutory deposit insurance up to EUR 100,000 per person and bank. The default risk is very low for banks within the EU.

What does 'payout at maturity' mean?

The bank calculates compound interest internally but pays out capital plus interest only at the end of the entire term. The result is identical to reinvestment; only the payout timing differs.

How is the fixed deposit rate determined?

The fixed deposit rate is based on the general interest level (ECB key rate) and the chosen term. Longer terms generally offer higher rates since the bank can use the money for longer. The rate is guaranteed for the entire term.

What happens at the end of the fixed deposit term?

At maturity, capital plus interest is automatically paid out or transferred to a reference account. Some banks offer automatic renewal (rollover) — check the conditions, as the new rate is often lower.

Is a fixed deposit ladder worthwhile?

A fixed deposit ladder distributes capital across different terms (e.g., 1, 2, 3, 4 years). This way, capital becomes available regularly and can be reinvested at current rates. This strategy combines the higher rates of longer terms with regular availability.

Do I need to pay tax on fixed deposit interest?

Yes. Fixed deposit interest is subject to capital gains tax (26.375% incl. solidarity surcharge). The saver's allowance of EUR 1,000 per person remains tax-free. With reinvestment, taxes are due only upon interest crediting — an exemption order avoids unnecessary tax deductions.

Limits

Limitations

  • No early termination considered: The calculator assumes the agreed term is fully observed. Costs of early termination are not modeled.
  • No account fees considered: Some banks charge fees for fixed deposit accounts. These reduce the net return but are not factored in.
  • Rate is guaranteed, but opportunity costs are not: The fixed rate protects against rate decreases but can be disadvantageous if rates rise. The calculator does not model this risk.
  • No partial withdrawal possible: The calculator assumes a complete investment until maturity. Partial withdrawals or partial dispositions are not modeled.

Sources

Sources and references

  • § 1 KWG — Einlagengeschäft (Termineinlagen)Bundesministerium der Justiz

    Fixed deposits fall under time deposits according to the Banking Act. They are subject to banking supervision by BaFin.

    View sourceRetrieved: 07/23/2026 · Verified on: 07/23/2026 · Primary source
  • Einlagensicherungsgesetz (EinSiG)Bundesministerium der Justiz

    Statutory deposit insurance up to EUR 100,000 per person and bank also protects fixed deposit investments.

    View sourceRetrieved: 07/23/2026 · Verified on: 07/23/2026 · Primary source
  • Deutsche Bundesbank — Zinssätze für TermineinlagenDeutsche Bundesbank

    Current average interest rates for fixed deposits of various terms at German banks.

    View sourceRetrieved: 07/23/2026 · Verified on: 07/23/2026 · Primary source

Knowledge