Short-term account saving for unexpected expenses At first, you should ensure that you will have enough funds in your current or savings account for the expenses to occur in the next couple of months, as this is the recommended buffer for any unexpected expenses. However, an account is not a recommended alternative for long-term saving, as an account does not yield any return. On the contrary, inflation eats up the value of your account savings and their purchasing power will decline.
Long-term savings in funds to grow your wealth and help reaching your dreams Saving in a fund every month is a better alternative if your period of saving is longer. Funds suit those who prefer to save regularly every month, as saving in a fund is easy and a more lucrative way of accruing savings than saving in an account. The longer the time horizon is, the more savings should be weighted in funds investing in equities, which at the same time come with a higher risk.  If you prefer, you can opt for active funds that are managed by Nordea’s professionals so you don’t have to monitor the markets or companies as closely as, for example, in direct equity investments.