Me and my wife are renting our apartment and we're both students with part time jobs. We are saving up for a condo more suitable to our needs, we would like to have our down payment within five years. It seems a savings account is best since we aren't very tolerant of risk in this position.
We live in Sweden. The central interest rate is negative so savings accounts give almost no return and the stock market is at an all time high, with housing prices at about 300% of the market ten years ago, and still rising. The inflation for june was -0.4%.
Most high profile analysts here believe that the stock market is inflated because people don't want to place their money were it doesn't give any return and that this will bolster the central bank to raise the interest rate any time soon, especially coupled with alarming housing prices and public debt (for complicated reasons, we build about a quarter of the homes we need to meet demand each year in Sweden), but the really bad inflation means that I can't rule out a lowering of the interest rates.
Given this information, should I put my money in a fixed interest account where they're locked away from me for three years and give me about 1.5% in return each year or should I place them in a normal account and ride on the rising interest rates that might happen?