--- title: How Much a Fixed-Term Deposit Pays in Panama (2026) url: https://www.allaboutpanamacity.com/guides/articles/fixed-term-deposit-panama summary: How much a fixed-term deposit (plazo fijo) pays in Panama in 2026: real rates by term, taxes, safety, and a calculator to estimate your interest. date: 2026-06-05 lastmod: 2026-06-05 tags: personal-finance, finance language: en --- ## Fixed-Term Deposits in Panama (Plazo Fijo) A **fixed-term deposit** — *plazo fijo* in Spanish — is one of the most popular low-risk ways to earn yield in Panama. You lock a fixed amount with a bank for a set term (3 to 36+ months) and earn a guaranteed interest rate that is usually **higher than a US savings account**, paid in US dollars (Panama uses the [US dollar](/guides/articles/panama-uses-the-u-s-dollar)). Use the calculator below to estimate exactly what your deposit would pay. ## How Much Does a Fixed-Term Deposit Pay in Panama? Rates depend on **amount** and **term length** — longer terms and larger balances earn more. Typical 2026 reference ranges across Panamanian banks: | Term | Typical annual rate (2026) | Interest on $25,000 | | ---- | ---- | ---- | | 3 months | 2.75% – 3.25% | ~$190 | | 6 months | 3.25% – 3.75% | ~$440 | | 12 months | 4.00% – 4.75% | ~$1,060 | | 24 months | 4.75% – 5.25% | ~$2,500 (total) | | 36 months | 5.25% – 6.25% | ~$4,300 (total) | Smaller, well-known retail banks and credit cooperatives sometimes offer the most aggressive rates to attract deposits. Always compare at least 3–4 institutions before locking funds. ## Interest Payout: Monthly vs At Maturity Most banks let you choose: - **Monthly payout** — interest is deposited to your account every month. Popular with retirees who want income (pair it with the [pensionado retirement plan](/guides/articles/retire-in-panama)). - **At maturity** — interest accrues and is paid in full at the end of the term, often at a slightly higher rate. ## Is a Plazo Fijo Safe in Panama? Panama has a stable, dollarized banking system, but note: **there is no government deposit insurance** like the US FDIC. Your safety comes from choosing a strong, well-capitalized bank. Stick to top-tier institutions (Banco General, Banistmo, BAC, Global Bank, etc.) and spread large amounts across more than one bank. ## Taxes on Deposit Interest Interest on local fixed-term deposits has historically benefited from favorable treatment for individuals, but rules change and depend on your residency and the account type. Confirm current tax treatment with the bank and a local accountant — see our overview of [taxes in Panama](/guides/articles/taxes-in-panama). ## How to Open a Fixed-Term Deposit 1. Open a [bank account in Panama](/guides/articles/bank-account-in-panama) (the harder step — banks require references and documentation). 2. Compare rates by term and amount across several banks. 3. Decide payout method (monthly vs maturity). 4. Sign the deposit certificate and fund it. You receive a certificate confirming amount, rate, term, and maturity date. ## Frequently Asked Questions ### What interest rate does a plazo fijo pay in Panama? In 2026, roughly **2.75%–3.25% for 3 months**, **4.0%–4.75% for 12 months**, and **up to ~6.25% for 36 months**, depending on the bank and amount. Larger balances and longer terms earn more. ### Is a plazo fijo in Panama safe? The banking system is stable and dollarized, but Panama has **no FDIC-style deposit insurance**. Safety depends on picking a strong bank and diversifying large deposits. ### Can foreigners open a fixed-term deposit in Panama? Yes, but you first need a Panama bank account, which requires documentation and references. Once you have the account, opening a plazo fijo is straightforward. ### Can I withdraw a fixed-term deposit early? Usually only with a penalty (reduced or forfeited interest). Fixed-term deposits are meant to be held to maturity. ### Is the interest paid in US dollars? Yes. Panama uses the US dollar, so deposits and interest are in USD with no currency risk for dollar holders. ## Sources & Notes Reference rates reflect typical 2026 retail bank offers in Panama and are for estimation only — confirm exact terms with each bank.