What do you do when saving and investing don’t yield anything?

Your home bank gives you half a percent interest and investment profits evaporate when an unknown bank in the US goes under. to become desperate. What can you do?

Raynot van der Heyden

Saving comes naturally and investing takes effort. Do exactly the opposite: leave your investments alone and start saving actively. Savings is free, so you can transfer savings as often as you like. And never make wrong choices, because you know in advance what the switch will result in.

Modifying investments costs money, whether from buying or selling costs. Moreover, when you invest structurally, you suffer from overconfidence. You buy a stock that is going up sharply. In retrospect, it turns out that it was an exaggerated noise. Or you buy a stock that used to do well, but is now down and therefore looks cheap. Later it turns out that the bad news gets another tail. The share continues to decline. Instead, buy one of the many index funds or ETFs that inconsiderately track the MSCI World Index, the S&P500, or perhaps the AEX. And don’t look back. Call it one Buy and holdStrategy, if anyone asks.

About the author

Reinoth van der Heyden is the editor-in-chief of Guildges.

You can make saving more exciting. Suppose you have 10 thousand euros in a savings account. You certainly won’t need all that next year. He put eight thousand euros on a deposit for a year. There are many banks that offer about 2 percent per annum or more, such as NIBC Direct, Leaseplanbank, Yapi Kredi, Credit Europe Bank, etc. All of them are subject to the Dutch guarantee system. The interest rate is fixed, so it won’t go down (nor go up). You cannot receive money for a year, except in the event of unemployment, inability to work, and sometimes when you buy your house, and when you die, it is handed over to your surviving relatives.

Savings reservation is a risk. Do you have enough reserves if your car, washing machine, and house run into trouble at the same time? It forces you to think: when should the car be returned to the garage for MOT, what hardware needs to be replaced? It teaches you to handle money consciously. And sometimes you have to save more because you’ve run out of savings. Now is the perfect time for that, because you can boost your savings balance with holiday money this May.

There are alternatives for those who do not want to live so precariously. Bunq has an Easy Savings Account with a variable interest of 2 percent per annum and the only limitation is that you can make a maximum of two withdrawals per month. Pong has a good score in the Fair Money Guide .nl/bankwijzer.

There are two foreign banks that know that most customers can miss their savings for a long time. You put your savings on a one-year deposit with a fixed interest rate of 2.75 percent, but you can still get money sooner. In this case you will receive no interest at all at Civibank and 0.2 percent on an annual basis at Openbank. Openbank is supervised by Spanish and Civibank under the Italian Deposit Guarantee Scheme. You can open an account with Civibank via the Raisin.nl platform.

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