💸 Money – Investment Savings | My Strategy

If you’ve just arrived in the Netherlands and were shocked to see a negative interest rate on your bank balance—don’t panic. I’ll walk you through what this means and share how I manage my money and investments across both the Netherlands and India.

Let’s break it down 👇

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⚠️ Disclaimer

I am not a financial advisor or consultant. This blog is based entirely on my personal experiences and insights. Please consult a certified financial advisor before making any investment decisions. Investments are subject to market risks. While I’ve done my best to provide accurate and helpful information, I take no responsibility for any inaccuracies or financial decisions made based on this blog.

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🇳🇱 Money in the Netherlands

🏦 Banking

Banking is well-structured and modern here.

• Dutch savings accounts usually give low interest (~1%)
• If your balance crosses a certain threshold, you may get charged rather than earn interest (yes, negative rates!)
• Some banks offer basic investment products, but returns rarely go into double digits
• If you don’t have the 30% ruling, you may need to pay wealth tax on your savings, making it less attractive for expats
• Money is saved in Euros, useful for major purchases in Europe

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💶 Loans

Loans are quite accessible and cheap in the Netherlands.

• Personal loans can start as low as 3% interest
• Mortgages can finance up to 100% of your property value, depending on your profile
• Loans can be a smart backup if you urgently need funds in India
• But approval still depends on your income, history, and assets

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📈 Stock Market

• Dutch residents can invest in stocks by opening a Demat account through platforms like:
  • Degiro
  • eToro
• Be aware: Trading fees in Europe are high compared to India
• You’ll hear a lot of stock talk in Dutch offices—lunchroom investment tips are a thing here!

👉 Note: I’m not affiliated with any of these platforms. Please do your own research.

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🧠 My Thoughts on Investment Strategy

These are my personal views. Please use them as guidance, not gospel.

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🏡 If You’re Planning to Settle in the Netherlands

If Dutch citizenship or long-term stay is your goal:

• Consider buying a house: Housing = equity + tax benefits
• A 30% ruling makes it easier to get favorable mortgage offers
• Explore international investments and company stock options
• Make long-term plays while staying diversified

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🇮🇳 If You Plan to Return to India

That’s the bucket I currently fall into. Here’s what I do:

• Open an NRE & NRO account with a reputed Indian bank
• Transfer money monthly to average out EUR-INR fluctuations
• Use a PPF account to its full capacity (₹1.5L/year)
• Use Zerodha (as an NRI) to invest in Nifty 50 ETFs (lower risk)
• Maintain liquid savings of around ₹20L based on your situation
• Invest in NPS, even though it’s slow and unattractive to many
• Get term insurance in India—very affordable
• Consider health insurance if you plan to return soon

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🏠 Why I Avoid Real Estate in India

I personally don’t invest in Indian real estate. Here’s why:

• The market is opaque and lacks accountability
• High prices + low liquidity = high risk
• I find better ROI and peace of mind with safer, diversified financial instruments

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📊 My Current Investment Split

Here’s how I personally allocate my investments:

• PPF: ₹1.5L/year (until maturity)
• NPS: ₹10K/month
• Mutual Funds (India): ~40% of my saved amount
• Liquid Funds: ~20% of savings
• FDs: ~10% monthly (varies based on bonus)
• Health Insurance: ₹10K/year
• Term Insurance: ₹46K/year
• Open Fund: ~30% — for business investments, tools, travel, courses, etc.

This balance keeps me focused on four key areas:

🧠 Mental Health
💼 Career Health
💪 Physical Health
💰 Financial Health

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💡 Bonus Tip

Some expats take low-interest personal loans in the Netherlands and invest that money in Indian fixed deposits for higher returns. I haven’t tried this myself, but it’s quite popular among NRIs.

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🙌 Final Thoughts

I hope this blog helped you understand how to manage and invest your money wisely—especially as an Indian expat navigating between two financial worlds.

If you liked this post and want to read more about expat life, travel, or financial wellness, feel free to subscribe to my blog. You’ll get email alerts when I post something new.

💬 Got a question or have a better strategy? Drop it in the comments—I’d love to hear from you!

Thanks for reading & happy investing! 💸