Instrument
Savings accounts & money-market funds
Low riskWhat it is
The calmest instrument there is: a bank account or a fund that invests in very short-term, high-quality debt. Money stays liquid — available in hours, sometimes instantly — and returns roughly track short-term interest rates.
How to buy it
Open a savings account at any regulated bank, or a money-market/liquidity fund through your bank's app or a regulated broker. There is usually no minimum, and no lock-up period.
Pros
- Fully liquid — withdraw anytime
- Usually covered by deposit insurance up to a limit
- Zero learning curve to open
Cons
- Returns are the lowest of any instrument on this site
- Rarely beats inflation by much, if at all
- Not designed for long-term growth
A worked example
If a savings account pays an annual rate close to inflation, MXN 10,000 sitting there for a year roughly keeps its purchasing power — it does not meaningfully grow it. That is the point: this is where your emergency fund lives, not your growth money.
Frequently asked questions
How much should I keep in a savings account?
Enough to cover 3–6 months of essential expenses (your emergency fund), plus any money you will need within the next year or so. Beyond that, idle cash is usually better placed in a government bond or time deposit that at least tracks interest rates.
Is a savings account the same as a money-market fund?
Similar in spirit (safety and liquidity) but structurally different — a savings account is a bank deposit, a money-market fund is a pooled investment in short-term debt instruments. Both aim to be calm and accessible, with slightly different risk and protection mechanics.