Hi, I live in Finland and currently I am holding my cash in a interest account using Wise digital bank: https://wise.com/fi/interest/
My investment plan consists in holding up to 5% of my investment assets in cash. This is mostly a "feel good" strategy where I hold it to take advantage when the market has big drops, i.e. I have money in hand to invest when those inevitably happens and can "wire" my brain to think I am buying at a discount instead of worrying if I should sell my current position.
The rest of my assets are allocated roughly 80/10/5% at VWCE https://www.justetf.com/en/etf-profile. ... 00BK5BQT80, VAGF https://www.justetf.com/en/etf-profile. ... 00BG47KH54 and "alternatives" respectively. Also, I have my 6 month emergency money totally separated from my investment money.
As my cash position is rising I am interested to know if there are good alternatives to the Wise account. I know that the account is in fact investing into "BlackRock ICS Euro Government Liquidity Fund", which to my knowledge can also be called a MMF? Their current TER is 0.1%, and Wise adds another 0.17%, totaling 0.27% TER.
Wise advantages is:
- It works like a current account that I can freely move money in and out without any fee (other than the 0.17% TER) and get daily returns.
Wise disadvantage is:
- The "instantaneous" movement is limited to 12k€, so, if the market drops suddenly and I want to invest 20k€ in VWCE, anything above 12k€ takes up to 2 days to move. Does not work as current account at this point anymore.
I could of course invest directly into the same fund or another MMF, but the problem is that this cash is also part of my day to day cash, so I do frequent moves on it to pay bills, etc. Also, brokers in Finland to the best of my knowledge are very expensive. For example, my bank charges either 1% fee for small transactions, the minimum fee is 0.17% for 4.5k€+ transactions. So, just parking some money in MMF for a possible short period can be a loss, reducing the appeal for MMF.
In summary, I would like to know if there are alternatives to the Wise account I am using for keeping my cash position which should be readily available for investing.
My investment plan consists in holding up to 5% of my investment assets in cash. This is mostly a "feel good" strategy where I hold it to take advantage when the market has big drops, i.e. I have money in hand to invest when those inevitably happens and can "wire" my brain to think I am buying at a discount instead of worrying if I should sell my current position.
The rest of my assets are allocated roughly 80/10/5% at VWCE https://www.justetf.com/en/etf-profile. ... 00BK5BQT80, VAGF https://www.justetf.com/en/etf-profile. ... 00BG47KH54 and "alternatives" respectively. Also, I have my 6 month emergency money totally separated from my investment money.
As my cash position is rising I am interested to know if there are good alternatives to the Wise account. I know that the account is in fact investing into "BlackRock ICS Euro Government Liquidity Fund", which to my knowledge can also be called a MMF? Their current TER is 0.1%, and Wise adds another 0.17%, totaling 0.27% TER.
Wise advantages is:
- It works like a current account that I can freely move money in and out without any fee (other than the 0.17% TER) and get daily returns.
Wise disadvantage is:
- The "instantaneous" movement is limited to 12k€, so, if the market drops suddenly and I want to invest 20k€ in VWCE, anything above 12k€ takes up to 2 days to move. Does not work as current account at this point anymore.
I could of course invest directly into the same fund or another MMF, but the problem is that this cash is also part of my day to day cash, so I do frequent moves on it to pay bills, etc. Also, brokers in Finland to the best of my knowledge are very expensive. For example, my bank charges either 1% fee for small transactions, the minimum fee is 0.17% for 4.5k€+ transactions. So, just parking some money in MMF for a possible short period can be a loss, reducing the appeal for MMF.
In summary, I would like to know if there are alternatives to the Wise account I am using for keeping my cash position which should be readily available for investing.
Statistics: Posted by pull_down — Sun Mar 09, 2025 4:25 am — Replies 0 — Views 47