Investment options in the Netherlands

A large majority of Dutch households save money – over 80%, according to the Dutch National Institute for Family Finance Information (Nibud). This reflects the Dutch culture of financial prudence. Saving is a good way to build a financial buffer to be prepared for a rainy day.

One of the key benefits of saving is security. Your money remains yours, and savings in a Dutch bank account are protected by the Dutch deposit insurance scheme up to €100,000. It’s always wise to have some money set aside for emergencies or larger future expenses.

However, saving alone may not be sufficient for long-term financial goals. Inflation can reduce the purchasing power of your savings over time, and if you’re saving for retirement or other longer-term objectives, the returns on a savings account may not be enough to achieve your goals.

If you’re looking to do more with your money, there are alternatives to simply keeping it in a savings account. For instance, some people choose to pay off more of their mortgage, contribute to a pension top-up plan, or explore other financial strategies.

If you’re not a homeowner, don’t have a mortgage, or are simply looking for another way to grow your money, investing might be an option worth considering. Although investing carries more risk than saving, it also offers the potential for higher returns.

Not sure if investing is for you? Read the most common misconceptions about investing.

You don’t have to choose between saving and investing. Many people in the Netherlands combine the two. Using only a portion of your savings for investing can be a balanced approach.

Before you start, ask yourself these questions:

1. Do you have enough savings to cover unexpected expenses?
2. Do you have spare money that you won’t need in the short term?
3. Are you prepared to take on more risk with some of your savings?

If the answer to these questions is 'yes', investing might be a good option for you. However, keep in mind that investing always involves risks. You could lose part or all of your initial investment. While there’s no such thing as risk-free investing, there are strategies to help reduce risks.

If you’re looking to do your own trading on the stock market, you can shoose from these options at ABN AMRO.

• BUX by ABN AMRO: app-only investing in a range of over 3,000 shares and ETFs.
• Self-directed Investing Basic: clear range of over 500 investment funds, shares and ETFs.
• Self-directed Investing Plus: over 25,000 investment assets traded on stock markets worldwide.

You don’t need to be an expert to start investing, however. If you don’t have the time or knowledge, would rather leave it to the experts or want to invest to top up your pension, you can choose from these options.

• Guided Investing: allows you to invest in funds without needing to manage shares or bonds yourself. Simply decide how much you want to invest and your preferred risk level. Investments through Guided Investing start at €20.
• Portfolio Management: if you have €100,000 or more to invest, our Portfolio Management team can help. One of our specialists will guide you through the process and provide tailored advice based on your financial situation and goals.
• Pension investment: a way to invest for a pension top-up. And if you stay within your annual margin, you also get a tax credit. You need a pension account to start investing.

It’s never too early or too late to begin investing. Every age has its advantages. Starting early as a young investor gives your money more time to grow, benefiting from the long-term compounding of returns. Starting at a later age, you may have more capital to invest, which can help you achieve your financial goals more quickly.

The earlier you start, the greater your chance of achieving solid long-term returns at manageable risk. Long-term investing allows you to ride out market fluctuations, benefiting from both the highs and the recovery after lows.

While shares and funds are common investment options, it’s essential to understand the risks. Shares, for instance, can have significant short-term fluctuations, but they tend to deliver higher returns over the long term. By starting early, you can reduce the risks associated with investing in shares.

Ready to explore your investment options? Check out our step-by-step guide. To find out which investment option would be right for you, schedule an appointment with one of our advisors.

Keep in mind: Investing always involves risks. You could lose part or all of your initial investment.