A European term deposit — Festgeld in Germany, compte à terme in France, deposito a termine in Italy — works the same way everywhere in plain terms: you put money in for a set period, the rate is fixed, and you usually cannot take the money out freely. That can be useful when you know when you will need the cash.
Keep everyday emergency savings in an easy-access account, even if the rate looks a little lower.
Use the yearly rate — then read the rules
AER (Annual Equivalent Rate) helps you compare products that pay interest in different ways. Use it to make a shortlist. Then read whether you can withdraw early, and what happens at the end of the term.
Some accounts renew automatically onto a lower rate if you do nothing. Put a reminder in your calendar two weeks before the end date.
Check who protects your deposit
Across the EU and the wider EEA, national deposit guarantee schemes cover eligible deposits up to €100,000 per person, per bank. The limit is harmonised, but the scheme that pays out depends on where the bank is licensed — not where you live.
Cross-border savings platforms are common in Europe, so the attractive rate may come from a bank licensed in another country. Check which national scheme applies before you send €20,000, and keep a copy of that information.
A practical way to decide
Write down when you need the money. Compare fixed products of a similar length. Check protection and early-exit costs. Then choose. If you are unsure, put only part of the money into a fixed deal and keep the rest easy to access.