Securing money is only wise if you are 100% sure that you will not need this money. You for example, you could do this with money you save for a certain purpose. In addition to this money, you must be in possession of a second savings account for unforeseen expenses. According to Mr. Y, there should then be at least € 3500 on that second bill. Withdrawing fixed money is subject to substantial fines and you often also have to pay withdrawal costs.
Take the interest into account
Secured money also means fixed interest. This is nice on one side, because you know exactly where you stand. You know from the start of the term what the final amount will be. However, this also has disadvantages. A fixed interest rate can be disadvantageous if the interest rates that the banks pay suddenly increase. The interest on your fixed amount will then not rise. When interest rates fall further, the fixed interest rate is only an advantage.
Banks often offer different term deposits. The duration can vary from a few months to twenty years. The longer you put your money away, the higher the interest will be. If you are afraid that you will need money in the meantime, you can also spread the risk by depositing your money in multiple installments. For example, set a certain amount every six months for several years. You can then keep an eye on the interest rates and fix your money when the interest rates are the highest. Because you lock in part of your money every six months, you will continue to have a large buffer and, after a few years, money will be released every six months, with which you can replenish your buffer. This way you run virtually no risk and you can still benefit from a higher interest rate.
Example calculation: Suppose you have € 30,000 and you want to fix this for five years, but you have no buffer. The first time you set € 5,000 for 5 years, half a year later you set the next € 5,000. After a year, you set € 5,000 for the third time and you now still have a € 15,000 buffer. If there are unforeseen circumstances, you can use this buffer and decide not to fix any money during that six months. If you have a windfall, you can possibly put extra money away. Ultimately, the fixed amounts are released every six months. You have the choice to do something with it, or to re-fix this amount. You can then adjust this according to the financial circumstances at that time.
Be wise to compare the savings deposits of the various banks. The offered percentages often differ from each other.