← Back to the glossary
Glossary entry · What you own
Savings account
Definition
A bank deposit account that earns interest. Insured by the government up to a limit (€100k in the EU, $250k in the US). Safe and liquid, but typical interest rates often barely match — or fall below — inflation, so it's not a place to grow wealth, just to park it.
Example
A savings account at 2% on €10,000 earns you €200/year before tax.
Related
What you own
Stock
A share of ownership in a company. You profit if the company grows; you lose if it falters.
Read →Bond
A loan you make to a government or company. They pay you interest, then return your money.
Read →ETF
A basket of many investments — often hundreds — bought in a single transaction.
Read →Index
A representative basket of a market — like the S&P 500 or the IBEX 35.
Read →