Začínáme s investováním
Savings account, fixed-term deposit, or fund: where to keep your emergency reserve
Key takeaways
- An emergency reserve needs availability and stability above all — not the highest possible return.
- A savings account is the best choice for most people — flexible, insured and immediately accessible.
- A fixed-term deposit offers a higher rate but locks your money away for a set period.
- A money market fund can yield slightly more, is not deposit-insured, but carries very low risk.
- Splitting the reserve is fine: keep part instantly accessible in a savings account and part in a better-yielding instrument.
You have an emergency reserve and you are wondering where to put it so it earns at least something. The key is not to forget what a reserve is for: it must be safe and immediately accessible. Return comes second. Let us compare three common options.
Savings account
For most people this is the best choice. Your money is available at any time, the rate is variable but decent, and deposits are legally insured (in the EU up to the equivalent of 100,000 EUR per client per bank). That is exactly what a reserve needs — flexibility and certainty.
Fixed-term deposit
You lock your money away for a set period (months to years) in exchange for a higher fixed rate. The problem for a reserve is liquidity. If you need the money sooner, it may not be withdrawable, or you lose the interest. A fixed-term deposit therefore suits a reserve only partially — mainly for the portion you are certain you will not need right away.
Money market fund
An investment fund holding very short-term, low-risk instruments. It may offer a slightly higher return than a savings account and is fairly liquid (you can usually access funds within days). Note: it is not insured like a bank deposit and carries small fees, though the risk is low. A sensible complement, not a replacement for cash on hand.
Practical solution: split your reserve
- A smaller portion (1–2 months of expenses) in a savings account — immediately accessible for acute situations.
- The rest comfortably in a better-yielding instrument (shorter-term deposit or money market fund) for less urgent needs.
Key takeaway
A reserve is not about maximising return — that is what investments are for. For a reserve, accessibility and peace of mind win, and a savings account serves that best, optionally supplemented by a better-yielding component. Compare current rates yourself since they change; this is a general overview, not a recommendation of any specific product.
FAQ
Where is it best to keep an emergency reserve?
For most people, in a savings account — flexible, decently yielding and insured up to the equivalent of 100,000 EUR. A reserve needs above all immediate availability and stability, not the highest return, and a savings account suits that best.
Is it worth putting a reserve in a fixed-term deposit?
Only partially. A fixed-term deposit gives a higher fixed rate but locks the money away. For a reserve you may need immediately, that is a risk — you either cannot withdraw it or lose the interest. It is better suited for the portion you are certain you will not need right away.
Is a money market fund safe for a reserve?
It carries low risk and can yield slightly more than a savings account, but unlike a bank deposit it is not insured and has small fees. It is a reasonable complement for part of the reserve, not a replacement for cash you need instantly available.
Must I keep the entire reserve in one place?
No, and often it is practical to split it: 1–2 months of expenses in a savings account for immediate needs, and the rest in a better-yielding instrument (shorter fixed-term deposit or money market fund) for less urgent situations.