Saving – highest savings interest is smarter than investing?

Saving is often smarter than investing, less risk and still a good return. A high savings interest rate, while investing involves a lot of uncertainty and you can also lose a lot of money investing. Then the choice for the highest savings interest rate in the Netherlands is very comfortable. Why not just go for the highest savings interest rates. A savings account is free. You can also combine saving and investing. Or is investing a good alternative to the savings account?

Investing or saving with the highest savings interest?

It is often advised to invest in shares, gold or bonds. But the question is of course whether the return on investing is so much better than a high savings interest on a good savings account. Even scientifically, it is not easy to prove that investing gives so much more return than simply saving. The right timing at the fair plays a very important role. In addition, investing involves all kinds of transaction costs, which can result in high costs if you frequently buy and sell shares. And they are deducted from your return. If you invest in a fund, you also have to pay management costs, which can be quite expensive. And certainly when investing, past results do not provide any guarantee for future investment results. A savings account is free.

Return on investing

And what returns are people talking about when investing? If the short-term return is disappointing, we are quickly told by the advisors that it is actually about the long-term return. But what about the long term? I also want a high return in the short term and do not want to run the risk of quickly losing my money on the stock market. Moreover, we have been seeing the stock market going up for a long time now and a correction is therefore looming. And investing always involves risk: a high return means a high risk. Of course, not everyone wants that.

Set up a savings profile

In fact, anyone who hesitates between saving or investing should also draw up a savings profile. By analogy with the investor profile and client profile when you invest. Your savings profile then indicates:

  • How much risk you want to take;
  • Whether you want the highest savings interest rate as your top interest rate;
  • How long you can leave your savings in the savings account;
  • Whether you want to be completely flexible and therefore want to be able to access your money immediately.

And of course, if all goes well, you save at a bank that falls under the deposit guarantee scheme, so that your money is largely safe.

How to save to build wealth?

You can choose:

  • A savings account that can be accessed immediately, so that you can always access your savings.
  • Take a deposit. That is a savings deposit or term deposit.
  • Take out a savings account with conditions.

A savings account that can be accessed immediately, so that you can always access your savings

In that case you will receive a variable interest rate. No obligations, no risk. See below for a reference for the highest savings interest rate you can get.

Take a deposit, a savings deposit or term deposit

With a deposit, you must indicate in advance how long you will lock up your money at the fixed interest rate offered. The longer the term of the savings account, the higher the interest usually is. This is an excellent choice for those who do not need their money again immediately, but can leave it at the bank for a while.

Taking a savings account with conditions gives higher savings interest

A deposit is a savings account with conditions, but other accounts are also possible with different conditions. For example, you deposit money monthly or you receive a base interest rate and only the bonus interest if the money remains in the account for a few months. It depends on the account whether the money can be withdrawn immediately. Often yes, but then you only get the basic interest rate.

The highest savings interest rate at Dutch banks

Why not just opt for safe savings with the highest savings interest rates on a top deposit?

Key lock

And I can name many banks that offer attractive savings interest rates. Dutch banks that are fully covered by the bank guarantee, the deposit guarantee scheme, and offer a high savings interest rate? They are still there. It is actually very easy to save safely at the highest interest rate and you will sleep a lot more peacefully.

read more

  • When to save a deposit?
  • Savers have become investors