Money, as we all know, is hard to come by. As such, when you have it, you want to make sure that you invest it as safely as possible. And, whether you’re after a safe place to simply stash your cash, a way to grow your money, or a little bit of both, some investments are definitely safer bets than others. Help yourself make the right decision by checking out our “safe investment” bets. Then, do yourself a favor and invest smart using these tips and the advice of a financial adviser or other professional to guide you.
Safe Bet #1: A Money Market or Basic Savings Account
There’s really not anything safer or more secure than investing your money in a FDIC insured savings account. It’s an incredibly liquid investment, meaning you can access and withdraw your money anytime you need to. An FDIC insured account will guarantee your savings account up to a whopping $250,000, and typically, if you invest $10,000 or more, you’ll enjoy larger than usual interest rates. If you want an even bigger return on your investment in terms of interest, consider a money market account. These pay more in interest, but you will typically need at least $1000 to get one started.
Safe Bet #2: CDs
You may also want to consider stashing your cash in a CD, and no we’re not talking about the musical kind. CDs are federally insured time deposits that have a designated maturity date that you pick. If you don’t withdraw any money until the agreed-upon date, you won’t face any penalties and you’ll get all the interest accumulated plus your original money if you allow the CD to mature until the agreed-upon date. The risk is low, as long as you’re not forced to make any unforeseen withdrawals and the economy doesn’t take any sudden, unexpected downturns that deflate the CD’s value.
Safe Bet #3: Savings Bonds
Savings bonds are another good option if you have cash to stash. You can choose an EE bond or an I bond. EE bonds are fixed-rate and will pay you a specified rate of interest for three decades, basically doubling your money if you hold it to maturity. I bonds are inflation indexed bonds, with interest rates changing to adjust for inflation every six months, and they are redeemable every year. These are safe bets in times when inflation is showing no signs of stopping.
Safe Bet #4: Treasury Bill
Finally, you may want to consider a treasury bill. These bills are shorter-term securities that mature in under a year. They are sold at less than their face value, meaning you earn money when you redeem them. These bills are available through banks and brokers and are a good way to quickly grow your cash.
As you can see, you do have lots of safe investment options, so if you’re not ready to open up tricky accounts or invest in the stock market just yet, these can be some good options for the cautious-minded.