If you want to go for investment, without fear of losing your money, here are some great investment options which are Federal government guaranteed and risk free. Check out these 5 safe investing options for your money.
Money Market or Savings Account
This is the most liquid investment possible. You can get easy money which is convenient to withdraw. Ensure that you have a FDIC insured savings account. Certain high return savings accounts are available online. For every savings account, you are allowed a maximum of six withdrawals per month.
Savings Bond
Savings bonds have two main variations: “I” bonds and EE bonds. EE bonds happen to be fixed rate bonds which pay off a definite interest rate for a period of 30 years. The major advantage is that its face value is twice the value paid, that is, to purchase a $50 bond, it costs only $25. If you retain it till it matures, the complete $50 can be received. At present, the interest rate paid by EE bonds is 1.20%. “I” bonds constitute bonds that are inflation indexed. Every 6 months, there is an alteration in the interest rate. In case you feel that inflation is on a continual rise, this makes for a very good investment.
Certificate of Deposit
If you wish to save money on a purchase like a car or a house down payment, it is a great instrument to use. Compared to a savings account, CDs pay off a higher rate of interest. However, they are less liquid in comparison to a savings account. A CD can be obtained against a very short term of 3 months or a long term of as much as 10 years. In order to maximize your income, a great strategy is to create a CD ladder and freeing up the money each year. This is the manner in which a CD ladder operates. You purchase manifold CDs at a time having different dates of maturity, say 5 year, 4 year, 3 year, 2 year and 1 year. The CDs attain maturity each year and you have the chance to roll it over as a fresh CD or cash out.
Treasury Bill
Many people are unaware of Treasury bills or T-bills. These are short-term securities with a maturity period of less than one year. You can purchase a 52 week, 26 week, 13 week or a 4 week bill. T-bills are sold at a discount on the face value and do not pay interest. Each Treasury bill has a face value of $1,000. They are purchased through an auction procedure. For instance, suppose you purchased a Treasury bill worth $1,000 at a cost of $950. You would be receiving the complete $1,000 as the bond is redeemed. Hence the earning is $50 as interest resulting in an effectual yield of 5.2%.
Treasury Bond
Treasury bonds constitute long-term securities which come with a maturity period of 30 years. The interest is paid every six months and these bonds are sold in bundles of $100 dollars. The bonds are a great option if you want to lock in a high interest rate for an extended period of time. Currently you can purchase a 30 year treasury bond which would yield almost 5%.
