A Term Deposit is a savings product that lets you lock your money away for a fixed period at a guaranteed interest rate. You choose the term, which can range from a few months to several years, and your rate stays the same from start to finish.

It’s one of the simplest ways to grow your savings with certainty. You put money in, leave it alone, and collect your return at the end. No guesswork, no market risk, no need to watch rates.

How a Term Deposit works

When you open a Term Deposit, you deposit an amount of money for a set period. During that term, your interest rate is fixed. Unlike a regular Savings Account, where the rate can change at any time, a Term Deposit locks in your rate from day one, so you know exactly what you’ll earn before you even start.

At the end of the term, you get back your original deposit plus the interest earned. Longer terms typically come with higher rates.

The trade-off is flexibility. Your money is locked for the full duration you choose. If you need to withdraw early, an early withdrawal fee applies.¹ That’s why Term Deposits work best for money you know you won’t need in the short term.

Why choose a Term Deposit

Term Deposits are a popular choice because they offer something most savings products can’t: a guaranteed return.

No rate changes. Your rate stays fixed regardless of what happens in the market or with central bank decisions.

Protection from volatility. Unlike stocks or crypto, a Term Deposit doesn’t expose your savings to price swings. Your return is predictable from day one.

Clear timelines. You choose when your money becomes available again, making it easy to plan around future goals.

Better rates for longer terms. Term Deposits often offer more competitive rates than standard savings accounts, especially over longer periods.

They’re a strong fit for short to medium-term savings goals: a home deposit, a big trip, a car, or simply building a reliable financial cushion.

bunq Term DepositsWith bunq, you can open a Term Deposit directly in the app in just a few taps. You choose your amount and term, lock in your rate, and earn up to 2.11% on the amount you set aside. Your rate is guaranteed for the full duration.

Your eligible Term Deposit balance is also protected under the Dutch Deposit Guarantee Scheme, up to €100,000 per person.

¹ When you place funds in a EUR Term Deposit, your money is locked for the full term duration. Only the full amount may be withdrawn, partial withdrawals aren’t possible. If you withdraw early, an early withdrawal fee applies: 1% of the amount withdrawn per remaining year (each partial year counts as a full year). Early withdrawal may reduce the amount you receive back.