Author Topic: Where to park your EUR  (Read 1460 times)

tgz_lime

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Where to park your EUR
« on: July 31, 2017, 04:36:40 PM »
What's the funds/ETFs should I look for if I'd like to invest my EUR for max 1 year? I'm thinking about a short-term EU corporate bond fund or maybe a EUR denominated US short term gov/corp bond fund.

daverobev

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Re: Where to park your EUR
« Reply #1 on: August 01, 2017, 07:57:14 AM »
High interest savings account. For a year you don't want to be in bonds, nor stocks.

farfromfire

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Re: Where to park your EUR
« Reply #2 on: August 01, 2017, 11:25:31 PM »
Depends on the country, but EUR savings accounts have lower interest than in the US.

Why does it need to stay in EUR for a year? keep it in a USD savings account until you need it.

Mr FrugalNL

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Re: Where to park your EUR
« Reply #3 on: August 01, 2017, 11:53:55 PM »
Agreed with daverobev. If you have a one-year time horizon you shouldn't be taking any stock/bond market or currency risks.

tgz_lime

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Re: Where to park your EUR
« Reply #4 on: August 02, 2017, 01:52:13 AM »
Well the problem is.. EUR savings account currently pays 0%. That's why probably a short term (duration <=1yr) corp or gov bond is the only way to have any yield on EUR. Alternatively, there are funds which are nominated in EUR, but buy US short-term gov bonds.. I'm curious if anyone has experience with these.

daverobev

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Re: Where to park your EUR
« Reply #5 on: August 02, 2017, 07:57:33 AM »
Well the problem is.. EUR savings account currently pays 0%. That's why probably a short term (duration <=1yr) corp or gov bond is the only way to have any yield on EUR. Alternatively, there are funds which are nominated in EUR, but buy US short-term gov bonds.. I'm curious if anyone has experience with these.

Over one year, bond funds can move a lot more than the 1% inflation you're trying to avoid. You aren't going to be able to buy something with such a short duration with small amounts of money anyway.
« Last Edit: August 02, 2017, 08:00:22 AM by daverobev »