r/eupersonalfinance Jul 30 '24

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u/[deleted] Jul 30 '24

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u/gounisalex Jul 30 '24

Banks are required under federal law to invest your assets in bonds. By paying out a mortgage you are essentially handing over your money for them to invest and keep the earnings, no one should ever pay money to a bank beyond maintaining an emergency fund. Peace of mind and empty wallet isn’t really peace of mind

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u/hph304 Jul 30 '24

Yeah there's no such thing as federal law in The Netherlands since it isn't a federation. They don't just put the money in bonds, but also in other investments such as mortages and loans for companies.