I am 21 years old, am in college and have a savings account with nearly € 15,000. As I understand it, inflation devalues money at about 2 % a year while the interest rate of my savings account is only 0.03 % annually. This doesn't seem like a very desirable situation.
I know very little about finances so I have no clue what other options might be available to me.
Is there a way I can get a better rate than 0.03 % annually?
Some notes which might be relevant in answering my question:
- I am not looking to "beat the market" or "make money" – I was just wondering whether I have any more appealing options than 0.03 % annual interest.
- Not that I habitually do this, but in case of an expense exceeding my monthly budget it would like to have the option to withdraw a few hundred euros (up to, say, € 600) from what is currently in my savings account.
- I do not expect smooth sailing financially after graduating (I am in a, let's say, financially challenging field) so, although I hope not, I might need a substantial part of the money in a few years (I expect to finish my studies at least 3 years from now).
- I am a risk-averse person. Reading some of the posts on this site I understand some financial strategies bring risks with them. If you want to suggest something that has a risk to it, please explain and justify it very extensively.
- Most of the posts here seem US-minded. Obviously I would prefer advice specific to the Netherlands, but I imagine there are enough general principles applicable to formulate a good answer without in-depth knowledge of the Dutch economy. However, one difference that might be good to mention (considering the large number of posts on this topic I saw on this site), is the fact that here in the Netherlands tuition is a whole lot cheaper than in the US and student loans are a lot less terrifying (all student loans are from the government and currently have 0 % interest).