Fixed-term Deposits As A Last Alternative?

The current interest rates for at least two years can be secured with deposit. The times for fixed-income investments, are slim. The inflation rate has now already repeatedly exceeded the three percent and the federal funds interest rate moves in the money market, only slightly above the four percent. Although new customers can obtain currently quite lavish special interest at the opening of the money market accounts, allowing for a period of up to six months sometimes interest rates by up to five percent overnight, after expiry of these deadlines, but only rarely more than four percent interest with a tag account are possible. Considering the 25% to be paid immediately by this interest income capital gains tax, or from next year 25% final withholding tax, so the yield at best enough the inflation-induced loss of monetary value to compensate for a real gain is hardly possible. But the prospects for the future promise also no improvement. Because of the mitigating economic and a Euro rate on highs, is in the next time more likely to count, which of course also directly affects the interest rate for call money and term deposits with interest rate cuts than with an increase in the key interest rates. A situation in which rotates the interest income net of taxes and inflation in the negative is no longer remote.

Therefore, an investment in fixed-term deposits considering can be drawn to protect themselves against a such a negative scenario. Interest rates of up to 4.5% are a value which can compensate for the current inflation also net of taxes and even a real profit with a Festgeldanlage p.a. possible, so. The advantage of a fixed-term deposit is system compared to a plant in day money in fixed interest rates. Is now invested capital in fixed-term deposits, so the current interest rates remain throughout the lifetime of the system, no matter how interest rates or the currency market will develop. It is possible to secure the current interest levels for a longer period of time, because the highest fixed deposit interest rates are at maturities of one to two years.

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