4G·

Alternative to overnight money

Hello everyone,

I have the following question: I currently have 500k in my call money account! As I want to restructure my life at the moment and am not sure whether I will need the money in the next 2-3 years, it is out of the question for me to put it in my securities account at the moment!

Nevertheless, the interest on call money is already very low, so I'm considering putting at least 400k into the $XEON (+0,01%) into the Does anyone have experience with larger sums in money market funds, is it worth it for 2 years?

Have a nice Sunday everyone 🙂

30 Commenti

Epi@Epi

I even consider the Xeon to be safer than overnight money. Xeon is a short-term loan to the central bank, call money to your house bank. Who goes bankrupt or defaults first if the worst comes to the worst?

And the 100k deposit guarantee will also be a thing of the past if 2 million customers suddenly sue for it in the event of a bankruptcy. Where will the money come from? You'll have to wait 20 years until you get a worthless 100k. No, no, then a money market ETF like Xeon instead.

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MoneyIncinerator@DoppelSchlechtMinus

@Epi Loan to the central bank? With XEON, DWS synthetically replicates an index from Solactive, with a carrier portfolio of all kinds of government and corporate bonds and not necessarily short maturities either. I can't imagine the worst-case scenario being that simple...

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Epi@Epi

@DoppelSchlechtMinus Interesting. When I last researched in 2023, 90% were still physically replicated and 10% synthetic. Something seems to have changed. 🤔
Then I'll have to retract my statement for now.

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MoneyIncinerator@DoppelSchlechtMinus

@Epi That's right, they only changed the index at least at the end of 2023. But again, I didn't know that such a high proportion of EU bonds were actually included before that.

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Pope Donkey XXI@DonkeyInvestor

The next Bitcoin halving is due in 3 years. So it's a dead cert if you put it in Bitcoin.

By the way, 500k in ONE call money account is anything but safe

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Louis@Dellou

@DonkeyInvestor so why doesn't every fund manager invest all his money just before halving?

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Pope Donkey XXI@DonkeyInvestor

@Dellou because they are stupid 👍

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Louis@Dellou

@DonkeyInvestor That's right, you're the only one with the crystal ball

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Pope Donkey XXI@DonkeyInvestor

@Dellou I don't have a crystal ball either. But I'm the smartest one here 👍

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Kakuzu@ExFinanzberaterAkatsuki

Basti, with such a large sum and a medium-term investment horizon, security is of course the top priority. Money market funds such as $XEON invest in short-term, usually very safe bonds and usually offer slightly better returns than overnight money, but also a slightly higher risk. Currently, interest rates are generally low, so the yield differences are often very small. For 2 years, a money market fund can be an alternative if you are prepared to take a minimal risk for slightly better returns. However, pay attention to the costs (TER) and liquidity, as money market funds are usually available daily, but do not offer deposit protection like overnight money. Perhaps also consider fixed-term deposits with a short term. Good luck 📈

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Basti92@BavarianLion

@ExFinanzberaterAkatsuki Thank you for your reply 👍 I'll think about it anyway, just wanted to find out in general!

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Dominik@finanzwolf3

I have little experience myself. However, I think Matthias Schmitt's blog article is really quite good. Maybe this will help: https://finanzgeschichten.com/sind-geldmarkt-etfs-besser-als-tagesgeld/

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TomTurboInvest@TomTurboInvest

Well, the fund currently holds around €17 billion, and e.g. 2% is 2% regardless of Betrag🤷🏽‍♂️
Only you can answer whether the interest rate of the €STR + 8.5 basis points is worthwhile for you

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Stuttgarter81@Moneymoney

I also have a relatively large amount of cash. ...I have opted for several bonds. The Xeon you mentioned, German government bonds with short maturities, the bond etf from Andreas Beck, corporate bond etf Europe from vanguard and slowly I'm also occasionally buying corporate bond etf on a dollar basis and a few long-dated US government bond etfs and a small position in EM government bond etf. Best regards 🖖

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Waldemar@Wowa83

400k is not a large sum for the $XEON. However, the return will probably not be sufficient for you. They hardly differ from the interest on call money. In contrast to $XEON, I would spread the money over several accounts for overnight money. Because of the deposit protection of 100k per account.

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Basti92@BavarianLion

@Wowa83 So far the money is spread over 2 accounts! Volksbank and Sparkasse! They actually only pay 0.75% percent on overnight money 😒 I'm not looking for a mega return, but simply that you could possibly get a little more out of it in 2 years!

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Waldemar@Wowa83

@BavarianLion ok then I would probably look for a call money account that pays over 2%, put 100k in there and 400k in the $XEON. Less stress and very little risk.

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Basti92@BavarianLion

@Wowa83 That's probably what it will come down to!

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Ironman@Ironman2022

You could also invest a portion in corporate bond ETFs with a fixed maturity. Keyword ibonds from blackrock or target maturity from dws xtrackers. I am currently considering this approach.

$IB26

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Basti92@BavarianLion

@Ironman2022 I haven't even dealt with this topic yet. It's just important that the risk is minimal!

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Ironman@Ironman2022

@BavarianLion of course you have to assess that yourself. Of course, they fluctuate a little more than the money market. But with around 380 companies with good credit ratings, I assume that the vast majority will repay on time.

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Metis@Metis

I've been part of the community here for quite a while, but I'm always subtly shocked when people have several 100k flying around in call money accounts.... 😵‍💫
Those are still just absurdly large sums to me. 🫠

For such short periods, money market funds or bonds or fixed-term deposits for short periods are actually suitable. Depending on how flexible you really need it.

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Basti92@BavarianLion

@Metis My current situation is that I want to restructure my life, both professionally and privately! If that wasn't the case, I would have easily put 300k into my portfolio by now! I also don't know if I want to stay in Germany forever. I also want to enjoy my single life for a while 😉

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Metis@Metis

@BavarianLion It's all good, you've certainly earned this sum, that shouldn't come across negatively!

With total assets of around 15k, I'm just scraping together cash, call money and custody account and have only been investing for about 2.5 years. 🫠
And Orange-Man has really slowed me down in my portfolio at the moment.
I'm curious whether I'll ever be able to reach these sums...

Enjoy your life, that's what money is for. 😁

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Basti92@BavarianLion

@Metis No problem, I didn't mean it in a negative way! In my opinion, anyone can achieve a lot if they keep at it 💪 But you really shouldn't forget to enjoy life!!! For example, I've spent the last 7 years focusing too much on money, deposits,... It's been 10 years since my last vacation and I'm simply burnt out, which is why I've decided to take 6 months off to just go on a bit of a vacation, eat out and catch up 😎

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Metis@Metis

@BavarianLion I try to keep a balance by setting aside money for leisure and hobbies when I set up my account structure.
But the urge to throw everything into the portfolio is already there. 😅
Which is also fueled by seeing where other portfolios are here. XD

Maybe it's because I started my career with €0 and student debt. And financial security through my own efforts has become incredibly important to me, but unfortunately it only really clicked shortly before 30.

Enjoy your time out and, above all, have a good rest! And feel free to extend it if you need to.

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Basti92@BavarianLion

@Metis Your mindset is right, that's the most important thing anyway 👍 You want to achieve something through your OWN efforts, that alone deserves respect! Just a tip on the side: don't compare yourself too much with others, you don't know anyone's background (inheritance, family finances...)!

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Pleni70@Pleni70

Interesting topic. I would also be interested

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Dan@fizzelfritz

Wow. I don't have that much now, but €50k. I'm also thinking about whether to transfer the money to TR or $XEON - what do you think? The money will probably be withdrawn and needed in January 2026.

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Alex@AlexBloch

With an investment horizon of 2-4 years ? Corporate bond fund managed by THE professional: "Fixed Income One" by Dr. Andreas Beck ! Your desired liquidity with relatively low price risk and steady distributions! 👍
https://www.income-one.com/

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