2G·

Emergency fund in Switzerland 🇨🇭- How to do it

Dear Community, I have a friend in Switzerland that would like to invest in an Emergency fund. Usuallt, we have three options:

1) $XEON (+0,01%)

2) Short term govt. bond

3) saving bank account

The point is that interest rates in Switzerland are very low which implies very low returns for options 2) and 3) and$XEON (+0,01%) is in a foreign currency.

What would you suggest?

Thanks you all in advance for your time.

3 Commenti

sagt@konfuszius

Definitely no foreign currency for an emergency fund.
Also keep in mind that Euro interest rates are just as low as in Switzerland if you take inflation into account. Zero interest on CHF savings is just as good as our 2% while inflation is also near zero in CH and the average Euro area core inflation is >2%.

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GiCi@GiCi

@konfuszius thanks, I see your point. Real interest rates are around zero. But again, I would like to know how you would invest your Emergency fund in Switzerland.

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Andreas M.@thor88

22H

@GiCi How I see it is that you prioritize liquidity not income for an emergency fund for a short to medium period (6M to 1Y).

Everything else is too risky or involves fees when accessing the cash reserve, or it's blocked for longer then 6 months to 1 year like CDs/Bonds/Pilon 3 Retirement.

I use XEON because I save in EUR, If you save in CHF then obviously you should search for a way to park your cash reserve in that FCY, at least for a 6M period the rest of the cash invest it in an Index Fund.

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