ETF vs savings account: pros and cons

Savings is stable. ETFs can grow faster over the long run but come with volatility. Use the calculator to compare scenarios.

Savings account (pros)

Is an ETF always better than savings?

Not always. Savings can be better for short-term goals and emergency funds. ETFs can be better for long time horizons if you can handle volatility.

What time horizon suits ETFs?

Many people prefer longer horizons (10+ years) for higher-risk investments, but it depends on your plan.

How do I compare outcomes?

Use /ETFvSavings.html with conservative assumptions to see the range of possible differences.

Do ETFs pay interest?

ETFs may pay distributions/dividends, but returns come from both price movement and distributions.

Should I do both?

Often yes: savings for safety + liquidity, and investing for long-term growth (depending on your situation).