Chapter 01 · Your starting point

Money terms in plain language

What do APY, real return or FIRE number mean? Short explanations of the terms used on Saver's Atlas, each linked to the matching tool.

Box 3 Broker Compound interest Deemed return Deposit guarantee scheme Emergency fund ETF (exchange-traded fund) Expense ratio FIRE FIRE number Global index fund HICP Index fund Inflation Real return Safe withdrawal rate Savings rate Tax-free allowance

Box 3

The Dutch income-tax category for savings and investments. You pay tax on a deemed return on your assets on 1 January. Box 3 calculator →

Broker

The company through which you buy and hold stocks, ETFs and bonds. Brokers differ in fees, product range and protection of your assets. Compare brokers →

Compound interest

Interest on your interest: earned interest itself starts earning interest. Over long periods the difference is large. Savings calculator →

Deemed return

The return set by the government on which box 3 is calculated, regardless of what you actually earn. There are separate percentages for savings, other assets and debts. Box 3 calculator →

Deposit guarantee scheme

Protects savings at a bank up to €100,000 per person per bank if the bank fails.

Emergency fund

A cushion of instantly accessible cash for unexpected costs or lost income, usually expressed in months of essential spending. Emergency fund →

ETF (exchange-traded fund)

A fund that trades on an exchange and tracks an index such as a broad stock-market index. You buy and sell it through a broker. Compare brokers →

Expense ratio

The yearly cost of a fund as a percentage of the amount invested. It is deducted automatically from the fund's assets. Compare brokers →

FIRE

Financial Independence, Retire Early: building enough capital that returns or withdrawals cover your spending, so working becomes optional. FIRE calculator →

FIRE number

The portfolio size at which it can cover your yearly spending. Often calculated as annual spending divided by a safe withdrawal rate. FIRE calculator →

Global index fund

An index fund or ETF holding thousands of companies in many countries, so a single purchase gives broad diversification. Compare brokers →

HICP

The Harmonised Index of Consumer Prices from Eurostat: the European inflation measure, including for the Netherlands. Inflation calculator →

Index fund

A fund that copies a market index as cheaply as possible instead of trying to beat it. Compare brokers →

Inflation

The average rise in prices over a period. At 3% inflation, something that costs 100 today costs about 103 a year from now. Inflation calculator →

Real return

Your interest or investment return minus inflation. It shows whether your purchasing power grows or shrinks, regardless of the balance on your statement. Savings calculator →

Safe withdrawal rate

The share of your portfolio you can withdraw each year in the expectation that the money lasts long enough. It is a historical rule of thumb, not a guarantee. FIRE calculator →

Savings rate

The share of your income that you save or invest. Together with your return it determines how fast your wealth grows. Questionnaire →

Tax-free allowance

The part of your assets on which you pay no box 3 tax. Fiscal partners each have one. Box 3 calculator →

General explanations, not personal financial advice. Rules and limits are shown with sources on the tool pages.