Börsenlexikon: Fixed Deposit

Time deposits (term deposits or time deposits) are short- to medium-term financial investments with credit institutions for which the term or period of notice is at least one month. When time deposits are invested, a fixed term is agreed between the customer and the bank, with a specific date agreed in advance for the maturity of the investment. At the end of the term, they can either be continued as a demand deposit or rolled over (extended). In the case of rollover, the current interest rate usually applies. During this term, an interest rate is fixed that remains unchanged until maturity, and any market fluctuations that occur are not taken into account.