I'm a 23 years old programmer working full time in Milan since September 2019. I'm currently not paying for rent and utilities and I'm managing to save 1200€ net a month (I have no debts). This money is gathering dust in a checking account and if don't do something with it will continue to do so until my current housing arrangement ends (this will happen in either two or three years).

I know I can't ask for a no risk 10% returns one year investment, but since I have some time before having to take on the costs of renting/down payment for a mortgage, my goal being saving something like 30k so that I'm not completely unprepared, do you have any advice (especially if it's Italy-related) for my predicament?

(I have been looking into a savings account but the low interest rates (~0.5%/y net interest) seem hardly worth the effort, but it will do if there isn't anything better.)


0.5% is less bad than 0.0%. You're only losing 0.75% instead of 1.25% to inflation (which is 60% loss instead of 100% loss). As for where to put money for two to three years... savings or term deposit accounts are exactly where I'd put them.

  • Agree with savings or term deposit if he needs it in 2-3 years, but OP should still be able to find a money market fund that will pay 2% interest at least.
    – Dugan
    Nov 17 '19 at 20:33
  • 1
    @Dugan you'd think a 2% yield for two years would be easy to find, but I sure don't know that much about Italian banking.
    – RonJohn
    Nov 17 '19 at 20:35
  • I can get a 2% gross (1.28% net) for locking in for 2 years, the problem is that right now I have only 2.5k and I would need to add funds on a montly basis. So yes, I can get maybe 5k with 1.28%, but the rest will have to have to fall into much lower interest because I won't be able to lock in for two years.
    – Livia
    Nov 17 '19 at 22:39
  • @Livia I don’t know anything about Italian banking but do you have access to a money market fund like these they let you contribute continuously without locking in your capital and keeping it liquid.
    – Dugan
    Nov 17 '19 at 23:02
  • @Livia "I can get maybe 5k with 1.28%, but..." €5K at 2% and €25K at 0.5% is better than €5K at 0.5% and €25K at 0.5%.
    – RonJohn
    Nov 17 '19 at 23:17

Your Answer

By clicking “Post Your Answer”, you agree to our terms of service, privacy policy and cookie policy

Not the answer you're looking for? Browse other questions tagged or ask your own question.