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Asking from the EU. I have emergency fund in a savings account yielding almost nothing. What is the best way to growth this emergency fund without taking too much risks, ie. not investing in stocks. I don't need this fund immediately, I have health insurance and retirement fund separately.

Could US Treasury bills be a good idea?

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  • Look for Fixed Deposit accounts denominated in Euros. Preferably in your country.
    – RonJohn
    Feb 11, 2023 at 20:55

2 Answers 2

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Your emergency fund shouldn’t be in a different currency from the currency that you may need in an emergency, because that exposes you to the risk that it will have fallen in value in your native currency when you need it. Concentrate on having a reliable amount of money at the time that you need it, not on maximising the return.

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Of course you don't need it immediately today. Today is not an emergency. But if you will never (even if your house burns down the day you were fired) need that fund then it's not an emergency fund, it's just some savings. If it is an emergency fund then prioritize liquidity above return, and keep it as small as you need it to be.

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