Where to keep your savings: liquidity, safety and values
AmanaFi team · Updated · 1 min read
The right place for savings depends on when you will need them. The closer the deadline, the more priority goes to availability and safety of capital, well ahead of return.
Short-term savings
For the emergency fund and projects under two years, favour an easily accessible account with no risk of loss. No product whose value can fall just when you need it.
Long-term savings
Beyond several years, you can accept value swings in exchange for better potential, provided you do not need the money in between.
- Define the horizon before choosing.
- Never put money for a near deadline in a risky asset.
- Diversify rather than concentrate.
Respecting your values
If you look for interest-free products, find out about accounts and products offered by participatory banks and check the structure is approved by a compliance board. Keep liquidity accessible at all times.
Frequently asked
Can I keep my savings in cash?
In small amounts for immediate emergencies, yes. In large amounts it is risky (loss, theft) and exposed to inflation. A separate account is generally better.
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