What makes FestPlus the better fixed deposit

Since the beginning of the interest rate changes in July 2022, over 180 billion euros have flowed into fixed-term deposits in Germany. With a three-year fixed-term deposit, one can currently enjoy an average interest rate of 2.71% per year (as of March 2026). This makes fixed-term deposit accounts a sensible addition to daily allowance accounts in the current interest environment, as it allows for securing an attractive interest rate in the long term.

However, fixed-term deposits also have their downsides, as it is often very difficult or impossible to access the money during the term. At the same time, interest rates have continued to rise over the past months. This means that people who opted for a fixed-term deposit 12 months ago, for example, could receive significantly more attractive interest rates if they were to commit today. Additionally, as with daily allowances, banks are not known for passing on the highest interest rates with fixed-term deposits. 

This is why we developed FestPlus, a smart alternative to conventional fixed-term deposits, which broadly invests money in the bond market and thus typically generates higher returns. This is combined with greater flexibility, as one can access their funds at any time. 

How does FestPlus work?

FestPlus is an alternative developed through the bond market to the classic fixed-term deposit offered by banks. FestPlus has a fixed term until September 2027 and pays back the invested funds in full at that time. Additionally, regular interest payouts can be enjoyed during the term, which are reinvested directly into FestPlus to optimally utilize compound interest effects. Currently, an annual return of 2.71% can be achieved (as of March 2026), which exceeds the average fixed-term deposit offer in Germany by over 0.4% after all costs and allows for more flexible payouts.

The advantage compared to CashPlus, the daily allowance 2.0: Thanks to the fixed repayment, planning security is established, and the current interest rate level can be secured until September 2027, regardless of future interest developments.

Therefore, the goal with FestPlus is that the money remains invested until the end of the term, allowing the full potential for returns to be realized. However, if the funds are needed earlier or if other investment opportunities are deemed more attractive, FestPlus can be entirely or partially dissolved at any time without burdensome conditions. This greatly increases financial flexibility. 

How does FestPlus differ from traditional fixed-term deposits?

In traditional fixed-term deposits, money is invested with a bank. The bank pays a corresponding interest rate for it. FestPlus, on the other hand, leverages the yield strength of the bond market, offering an average higher return and more flexibility.

What risks and opportunities are there?

By investing in FestPlus, you can expect to maintain the current yield until maturity. As of now, it is 2.71% (March 2026), provided no bond invested in FestPlus defaults. This is generally considered very unlikely. At the same time, no single bond can constitute more than 3% of the investment amount in FestPlus, providing an additional safety mechanism. In comparison, if money is deposited in a bank's traditional fixed-term deposit and the bank faces financial difficulties, only the deposit insurance up to €100,000 applies. 

Selling the investment prior to the end of the term is possible at any time, increasing flexibility. Additionally, funds can be accessed at any time with the UnitPlus bank card. However, there is a potential interest rate change risk in a changing interest environment, where, in the worst-case scenario, a loss may occur within the term. This risk does not exist if FestPlus is kept until maturity in September 2027, and no bond defaults within the term (default risk). We highlight this in the app and provide you with the proper decision-making assistance.

Summary

FestPlus is particularly suitable if one can forgo the funds until September 2027, seeks an attractive return, and values added flexibility. At the same time, FestPlus can be well combined with other investment strategies like CashPlus directly in the app. 

Risk Notice

This article is not to be understood as an investment recommendation. There is also no advice to buy or sell financial instruments. Investing in capital markets carries risks, which can lead to total loss. Past performance is not a reliable indicator of future results.