# Bond ETFs as an alternative to bank account
**URL:** https://community.trading212.com/t/bond-etfs-as-an-alternative-to-bank-account/48021
**Category:** 📊 Investing
**Created:** [April 10, 2021, 5:22pm UTC](https://community.trading212.com/t/bond-etfs-as-an-alternative-to-bank-account/48021 "2021-04-10T17:22:28Z")
**Posts on this page:** 9
**Page:** 1
### Author:  [@michal11](https://community.trading212.com/u/michal11)
#### Post date: [April 10, 2021, 5:22pm UTC](https://community.trading212.com/t/bond-etfs-as-an-alternative-to-bank-account/48021/1 "2021-04-10T17:22:28Z")
Hi guys. Is any of you using ETF as an alternative to saving account? My current one is yielding 0,000000% and I was thinking about moving at least part of my reserves to ETF. I might need some of this money at the end of 2021, but I’m also able to cover my needs from other sources so I don’t mind some price fluctuations. Looking forward to your suggestions!
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### Author:  [@RLX](https://community.trading212.com/u/RLX)
#### Post date: [April 10, 2021, 5:39pm UTC](https://community.trading212.com/t/bond-etfs-as-an-alternative-to-bank-account/48021/2 "2021-04-10T17:39:06Z")
> [@michal11](#):
>
> My current one is yielding 0,000000%
Maybe even less, due to the inflation and the fees.
Maybe considering **Inflation-linked Bonds ETFs** , to have a Real Return (return adjusted to inflation)? 😉
For US Bonds ETFs see TIPS ETFs, several flavors (including currencies, distribution/accumulation).
Also Global, GILT and EUR Inflation-linked Bonds ETFs → Only USD and GBP/GBX
Can also search for new additions in this category and ask T212 to add them. 😉
> [@michal11](#):
>
> I might need some of this money at the end of 2021
For so short term, it’s risky, you could end loosing some money, and won’t have time to recoup.
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### Author:  [@Jobloggs](https://community.trading212.com/u/Jobloggs)
#### Post date: [April 10, 2021, 6:16pm UTC](https://community.trading212.com/t/bond-etfs-as-an-alternative-to-bank-account/48021/3 "2021-04-10T18:16:56Z")
If it’s money you actually need i would leave it outside of the market in any shape or form.
The longer period of time you have in the market, the more your risks reduce.
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### Author:  [@Dougal1984](https://community.trading212.com/u/Dougal1984)
#### Post date: [April 10, 2021, 7:14pm UTC](https://community.trading212.com/t/bond-etfs-as-an-alternative-to-bank-account/48021/4 "2021-04-10T19:14:36Z")
What currency do you need, that may also play a factor in options.
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### Author:  [@Philby](https://community.trading212.com/u/Philby)
#### Post date: [April 10, 2021, 7:34pm UTC](https://community.trading212.com/t/bond-etfs-as-an-alternative-to-bank-account/48021/5 "2021-04-10T19:34:09Z")
As already mentioned, there’s risk even with bond ETFs and if you need to cash out in the shorter term, that risk is obviously heightened.
I use rolling notice accounts as ‘mini-bonds’ and manage withdrawal schedules so I know exactly when I can exit with each one, cancelling and rescheduling withdrawals to extend the lock if I can stay in.
Not many around right now but you can get at least .5 on a 45 day. A lousy rate but still better than nothing and without the market risk, though the .1 you’d be getting above an EA account would only be worth it if you have a very high balance.
Just an idea.
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### Author:  [@Dougal1984](https://community.trading212.com/u/Dougal1984)
#### Post date: [April 10, 2021, 8:16pm UTC](https://community.trading212.com/t/bond-etfs-as-an-alternative-to-bank-account/48021/6 "2021-04-10T20:16:22Z")
In GBP you can get 2% on balances up to 1k, and two 3% regular savers for £50 a month on balances up to 1k(can withdraw any time).
Other than that you are talking 0.4% easy access, but Premium Bonds probably worth it.
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### Author:  [@Darko](https://community.trading212.com/u/Darko)
#### Post date: [April 11, 2021, 12:14am UTC](https://community.trading212.com/t/bond-etfs-as-an-alternative-to-bank-account/48021/7 "2021-04-11T00:14:52Z")
Excellent topic. I’ve seen treasury bonds ETFs like VDTY etc. on T212 (there are approx. 30 of them), but they don’t look like a good buy (at least they didn’t turn out that way in the last few months).
What would you recommend as a replacement for savings, something with a minimal max drawdown?
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### Author:  [@michal11](https://community.trading212.com/u/michal11)
#### Post date: [April 11, 2021, 6:40am UTC](https://community.trading212.com/t/bond-etfs-as-an-alternative-to-bank-account/48021/8 "2021-04-11T06:40:36Z")
Just a small clarification - it´s not like I would need all the money as I will accumulate some more savings during the upcoming months, and I´m also able to wait if the value drops - so let´s say that in Jan 2022 the value of my investment will be lower than what I invested initially, I can wait couple of months or I can cover my cash needs some other way. So all in all - I´m looking for someone who is currently using the strategy I´m asking about - short term cash invested in bond ETF which will at least partly protect my money from inflation. I already checked couple of ultrashort and inflation linked ETFs, but I would be interested what you are using 🙂
> What currency do you need, that may also play a factor in options.
Euros, I live outside UK.
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### Author:  [@RLX](https://community.trading212.com/u/RLX)
#### Post date: [April 11, 2021, 2:18pm UTC](https://community.trading212.com/t/bond-etfs-as-an-alternative-to-bank-account/48021/9 "2021-04-11T14:18:38Z")
I used to park some free cash in the iShares $ TIPS UCITS ETF USD (Acc) (IUST), it’s an EUR version.
It’s an inflation-linked US Treasuries (TIPS), better interest rates and higher inflation than in other countries.