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Protect your savings from inflation with Wallet
Grow short-term savings you’ll need in the next couple of years.
What is Wallet?
Traditional bank and savings accounts can't keep up with inflation and pay only a fraction of market rates. Wallet is a conservative investment for money you’ll need in 1–3 years.
Minimized risk
The portfolio is composed of a large number of safe instruments so its value barely moves.
Withdrawals at any time
You do not have to lock your savings in Wallet; you can request a withdrawal anytime without a fee. The money will reach your account within 3–10 days.
For a period of 1–3 years
Wallet is ideal for storing savings you will need in 1–3 years (e.g., for major apartment renovations or car replacement).
Lower fee
Just one fee: 0.5 % per year (incl. VAT). No charges for deposits, withdrawals, or trades.
Fair return
Wallet consists of instruments that track the rates at which top global companies and governments borrow.
Tax-free
Investment gains are tax-exempt for Slovak tax residents after one year of investing.Bond maturity return
It wasn't that long ago when the central bank kept interest rates below zero, making it impossible to appreciate savings in the traditionally popular bond and money market. However, the situation has turned around. Thanks to rising interest rates, many bonds currently offer the highest yields in more than a decade. The instruments in the Wallet have been selected to keep portfolio volatility low even in the event of negative market developments or interest rate changes. Don't let elevated rates be only a burden and utilize the opportunity they present.
When to Use the Wallet?
Essentially, whenever you know you don't need the money now but plan to use it in one to three years. Planning a wedding or major renovation? Preparing reserves for the birth of a child or replacing appliances? Are you about to buy a property or just want to have some money in reserve? In our blog, we've outlined 10 cases when you should not let your savings lie around in the bank.
Contemplating other financial goals?
Find out what suits you best
Want to dive deeper into the Wallet?
What does Wallet consist of?
Wallet consists of two main types of ETF funds. The first are funds tracking the European Central Bank’s base deposit rate. The second type includes short-term bonds (maturing in 3–5 years) of the largest eurozone countries and global companies.
Governments and companies borrow money short-term through bonds, repaying it with some interest. Wallet’s goal is to provide ordinary people access to the returns at which these governments and companies currently borrow. To minimize value fluctuation risk, we have excluded stocks of global companies from Wallet. We have also excluded bonds with longer maturities or lower credit ratings since they carry higher value fluctuation risks.
What risks do I take in Wallet?
Wallet is designed so its value fluctuations are minimal. The biggest threat is rising interest rates, which cause its value to decline. However, the portfolio is built to ensure this risk does not significantly threaten you when investing for the recommended 1–3 years.
The opposite also applies - if interest rates fall, Wallet’s value rises more sharply. This product performs best during periods of falling interest rates. Aside from interest rate risk, other types of risk are negligible. You are protected against issuer bankruptcy (e.g., governments or companies) included in the portfolio due to broad diversification among many bonds and exclusively using high-credit-rating bonds (so-called investment-grade instruments). For ETFs tracking central bank interest rates, investors also bear counterparty risk arising from swap contracts through which the fund achieves this yield. Counterparties are large banks (e.g., Société Générale, Deutsche Bank, etc.). However, strict regulation protects you sufficiently against this risk. Within the fund, the risk from a single counterparty cannot exceed 10%. Swaps are fully collateralized. Only amounts over 500,000 euros may not be fully collateralized in derivatives, which is negligible given funds managing billions of euros. In case of counterparty failure, the fund’s assets remain in the exchange basket (quality bonds, possibly stocks).
How does inflation devalue savings in banks?
Inflation means prices of goods and services in the economy gradually rise. Money held in regular or savings accounts thus loses value gradually, as it buys fewer things. Conservative low-risk investing via Wallet can protect your savings better than a bank.
If you want to avoid the harmful power of inflation, do not leave your short-term savings in a regular account; otherwise, their purchasing power will be less when you need them. European households deposited a whopping €9,555 billion. With a 2% inflation, this amount drops by almost €200 billion. However, if you have savings on a bank account that you will need in 3 or more years and can leave invested longer, you don’t have to restrict yourself to conservative investing in Wallet. In that case, we recommend considering longer-term investing in ETFs that outperform inflation even more convincingly.
When to choose Smart Deposit and when Wallet?
The minimum investment in this product is set at 50,000 euros. Clients saving with Finax for at least 5 years can draw an annuity from as little as 10,000 euros.
Also, for the annuity, we assume you will draw from your savings for at least 10 years. The product is designed for long-term income withdrawal from assets, for example, after retirement. This does not mean you cannot withdraw your money early if needed - the product has no lock-in, and you can request withdrawals anytime without fees. For exceptional cases, we made the annuity available from a 5-year horizon if you want to secure your children during university studies, for which you have been saving. For horizons shorter than 10 years, we offer only one risk combination - 30% stocks and 70% bonds.
Create an investment plan today
Got questions?
- Opening an account with Finax is simple and fully online. Just click on "Let's start" in the top menu bar. From there, you will be taken to the registration page where you can choose your investment goal and answer a few questions about your investment preferences and risk profile. Based on your answers, we'll select a suitable investment strategy for you. Next, you'll create your online access, verify your identity using biometrics, provide personal information, confirm your contact details, and sign the portfolio management agreement online. Once you've completed these steps, nothing will hold you back from effectively growing your wealth. More information.
- Finax was established by Juraj Hrbatý, a seasoned financier with 16 years of experience, and Radoslav Kasík, who brings 9 years of experience as a portfolio manager. The company's management team also includes Ján Jursa, Ján Tonka, Michal Vaculík, and Juraj Šnirc, each with extensive backgrounds in various departments of banks, securities traders, and asset management companies. More information about the Finax team.
- Finax charges a portfolio management fee of 1% per annum plus VAT, calculated based on the average account value throughout the year and deducted monthly. If the volume of the client's assets managed by Finax reaches at least 100,000 euros, this fee will be reduced to 0.85% per annum plus VAT. For assets over 500,000 euros, the fee is reduced to 0.65% p.a. + VAT. For further details on Finax service fees, please refer to our Price List.
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Check the ongoing promotions to obtain an even higher discount.
At Finax, we provide various discounts to make your investments with us even more profitable. Alongside regular special offers, we offer several permanent discounts that allow you to exempt a part of your assets from the portfolio management fee: discount for inviting a friend and for transferring investments to Finax from competitors.
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