Investing as a beginner in the Netherlands: 5 ways to get you started

The internet is full of financial advice, but one of the main mantras? Money kept in your bank account is dead money. You need to be investing.

Why? The argument behind this is pretty straightforward: money sitting in a bank loses value over time because inflation grows faster than interest rates on a traditional savings account.

But when it comes to putting your money somewhere where it’ll actually grow, many newbies feel overwhelmed by the options, the apps, and the possibility of losing their hard-earned cash.

So how do you start without risking it all? Here are five types of investments you could try (or at least investigate) as a beginner.

💡Disclaimer: Investing involves risk of losing some or all of your money. Speak to a qualified financial adviser if you have doubts.

1. Look into opening a high-yield savings account

You know that epic trip around the world you really want to take next year? Or that wedding you’re planning in two years and need to save up for? Those are both examples of short-term goals.

And to save up for short-term goals, you want to put your money in a place where you have guaranteed returns and where its value won’t fluctuate too much. Enter: high-yield savings accounts.

They act as a solid parking lot for your cash while you figure out your long-term investments, and because you can typically access the money quite quickly, they are also a great place to keep your emergency fund.

However, high yield doesn’t mean a high return, so don’t expect to make a killing. The best options currently available offer interest rates of no more than 3% APY (as of November 2025). 

Overall, if you want to keep your cash extra safe and still make at least a little bit on it, a high-yield savings account is a good bet.

2. Give Exchange Traded Funds (ETFs) a try

With your shorter-term wishes and dreams covered, it’s time to think about medium to long-term financial goals. So, where can you look if you want higher yields than the previously mentioned option? 

The best place to start as a beginner is with Exchange Traded Funds.

An Exchange Traded Fund, aka ETF, is a type of investment fund that’s made up of various assets like stocks, bonds, or commodities.

The fund typically tracks the performance of a specific sector, such as tech or healthcare, or a specific market index, such as the S&P 500 (which looks at how the leading 500 companies on US stock exchanges are doing).

READ MORE | Investing in the Netherlands? Here’s how Lightyear helps you effortlessly grow your portfolio

When the index goes up, the money you invested in the fund goes up as well and vice versa.

The handy thing about ETFs is that they can be bought and sold like stocks, meaning their prices fluctuate throughout the day, and you can trade them at any point when the stock exchange is open.

This makes them different from mutual index funds, which only trade at the end of the day and typically aren’t available to retail investors like yourself.

Why are ETFs a great pick for beginners? Firstly, they’re simple. 

Since an ETF is made up of a portfolio of stocks and bonds, you don’t need to spend precious time digging into the performance of every single company to figure out whether its stocks are a good investment.

This comes hand in hand with another benefit: diversification. By investing in an index fund, you’re making sure that you haven’t put all your eggs in one basket. 

READ MORE | The best banks in the Netherlands for internationals in 2025

ETFs have broad market access. This means you can invest in practically anything from emerging markets to specific industries like tech or pharma, or even commodities like oil and gold.

Because they are managed passively, the associated fees are typically lower as well. On top of that, you can access information about what they’re made up of, so you know exactly what you own.

3. Start a personal pension account

The great thing about investing is that you really can start small and simple. And by simple, we mean with a pension fund.

Pensions in the Netherlands are typically made up of two main pillars: 

• The first is the AOW (Algemene Ouderdomswet or National Old Age Pension Act), which is a basic pension provided by the government to anyone who lives in the Netherlands and pays income tax.

• The second is an employee pension. Many companies offer this as a perk, but it’s not actually mandatory for an employer to pay your pension unless this is stated in your CAO (Collective Labour Agreement).

That is why many people in the Netherlands actually opt for a third pillar: a personal pension account. You can set one up through your bank, insurer, or other financial institution.

READ MORE | You should be supplementing your Dutch pension: here’s why (and how to do it)

What are the advantages? Large pension funds invest money into things you might not access on your own, such as large infrastructure or alternative assets. And because you’re looking at a long-term investment, you don’t have to worry about short-term fluctuations in price.

There’s also a sweet perk that you can benefit from: Investments into a private pension account can be deducted from your taxes.

4. Move on to individual stocks

Stocks represent the more “classic” form of investing. What do we mean by that? Basically, you buy shares of an individual company, for example, Apple or Philips.

It’s a high-risk, high-reward type of thing where if your selected company does really well, you can make big bucks. However, if it does poorly, you can lose it all just as easily.

If, with time, you want to get serious about investing and aren’t deterred by doing a bit of research and checking out earnings reports, stock investing can be a great teacher.

On top of that, investing in stocks gives you full control: you decide what business you support with your money and which ones you avoid.

However, as a beginner investor, you shouldn’t bet all your money on stocks. Start with just a portion and put the rest in diversified funds. As you become more advanced, you can adjust your strategy.

5. Try investing in a Real Estate Investment Trust

Let’s be real: buying a house in the Netherlands in the current housing market might not be a possibility for everyone. But what if you still want to have some of your money in real estate?

One thing you can consider is investing in Real Estate Investment Trusts. A REIT is a company that owns or produces real estate that generates income (think offices, shopping malls, apartments).

While you cannot invest in just any REIT, some are publicly traded, and you can buy shares like you would with a company. Similar to owning company shares, investing in REITs typically comes with investor voting rights. 

REITs are obligated to distribute most of their taxable income, which means you can get regular dividends as an investor. 

However, keep in mind that they are subject to other tax rules in the Netherlands than regular shares.

That being said, they are a great way to diversify your portfolio and have something that behaves differently from stocks and bonds.

Last but not least, it is a highly liquid product, meaning you can quickly convert your shares into cash (which is not always the case with a physical house).

While investing might seem scary for a newbie investor, there are relatively easy ways to start building up your portfolio. 

Start small with lower-risk options, keep it simple, and remember, don’t put all your eggs in one basket. As your confidence grows, you can start looking into more complex and higher-risk options.

What is your experience with investing? Share your thoughts in the comments!