If you have savings in a bank and want to earn more on them, sooner or later you’ll face the same question: Is an interest-bearing account better, or a fixed-term deposit? The answer depends on your situation, but with current interest rates, the difference can amount to hundreds of euros a year. We’ll explain it using real data.
What is an interest-bearing account?
An interest-bearing account is a checking account that pays interest on the available balance. Unlike a deposit, the money isn’t locked up: you can withdraw, deposit, or use the card at any time. Interest is usually paid daily or monthly and is credited directly to the account.
Current examples in Spain:
- Trade Republic: 2.02% APR on available balance (no conditions)
- MyInvestor: 2.10% APR (for the first 12 months; then it drops)
- Bankinter Digital: 2.15% APR (first 6 months for new customers)
What is a fixed-term deposit?
A fixed-term deposit is a contract in which your money is locked away for a specific period (3, 6, 12 months…) in exchange for a fixed interest rate. If you withdraw before maturity, a penalty is usually applied.
Spanish banks still offer modest rates on fixed-term deposits for individuals. The best options are usually found at online banks or on European deposit platforms like Raisin.
Direct comparison: returns, liquidity, and guarantees
| Feature | Interest-bearing account | Fixed-term deposit |
|---|---|---|
| Typical yield 2026 | 2.00% – 2.15% APR | 2.50% – 3.50% APR (depending on institution/term) |
| Liquidity | Immediate, no penalty | Locked until maturity |
| Minimum | No standard minimum | From €1,000 – €10,000 |
| Deposit guarantee | FGD: €100,000 per account holder | FGD: €100,000 per account holder |
| Taxation | Capital gains | Capital gains |
| Tax rate fluctuation | May change at any time | Fixed for the term of the contract |
Tax implications
Both products are taxed the same way under personal income tax as capital gains:
- Up to €6,000: 19%
- From €6,000 to €50,000: 21%
- Over €50,000: 23%
There is no tax advantage of one over the other. What matters is the gross pre-tax return.
When is each option worthwhile?
Choose an interest-bearing account if:
- You need frequent access to the money (irregular expenses, emergency fund)
- You don’t want to tie up capital for months
- The yield difference compared to a savings account is small (<0.5 percentage points)
Choose a time deposit if:
- You are certain you won’t need that money during the term
- The interest rate offered is significantly higher than that of available interest-bearing accounts
- You want to protect yourself against potential rate cuts (Euribor falling in 2026)
The ladder strategy
The optimal strategy for many savers is the maturity ladder: keeping part of the funds in an interest-bearing account (for immediate liquidity) and distributing the rest across time deposits with different terms. This way, you maximize returns without sacrificing all your liquidity.
Example with €20,000:
- €5,000 in an interest-bearing account (2.10%) → immediate liquidity
- €5,000 in a 6-month deposit (2.80%) → matures in September
- €10,000 in a 12-month deposit (3.20%) → matures in March 2027
Conclusion
In 2026, with the Euribor on the decline, fixed-term deposits generally offer higher returns than interest-bearing accounts, but at the cost of tying up your capital. An interest-bearing account is the best option as a safety net or for amounts you might need in the short term. For the rest, a well-chosen deposit can give you between 0.5 and 1 percentage point of additional return.
The key: don’t leave all your money in an interest-free checking account. Either of the two options analyzed is better than the 0% offered by traditional banks.
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