Looking for a safe investment? Here is a list of five investment choices that are considered safe. Their primary goal is to protect what you have rather than earn you a high return.
A bank savings account is a type of account designed to simply hold money that you do not need immediate access to. When contrasted with checking accounts, bank savings accounts tend to pay a slightly higher rate.
Certificates of Deposit (CD’s) are one of the safest investment vehicles out there. If you want to be at the low end of the risk/reward spectrum, CD’s might be the right choice.
Investments issued by the U.S. Government are considered very safe. These include things like Series EE/E or I Savings Bond as well as Treasury Bonds, Notes and Bills. You can purchase these safe investments by opening an account directly with the Treasury and investing as little as $25 for savings bonds and as little as $100 for Treasury Bonds, Notes and Bills.
Money market funds are a popular cash management tool and although they are not as safe as a bank savings account or certificate of deposit, they are still considered a secure place to park cash.
A fixed annuity is a contract with an insurance company. You give them your money to manage, and in exchange they pay you a guaranteed return. Usually the interest on a fixed annuity is tax deferred. Fixed annuities are usually not liquid, which means you will not have easy access to the funds like you do with a bank savings account or money market account.
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