Investing money in safe avenues is something we all wish to do. Ideally, low investments with high rates of return are becoming more and more attractive, and with good reasons. We all wish to live a financially secure life and save money for post-retirement.
In case you also wish to know a few investment ventures where there’s a good guarantee of getting high returns, here is a list for you. Using any or all of these options, you will be able to secure yourself a great deal.
1. High-yield savings account
This is technically not an investment but it gives you high rates of returns anyway. You can find the options of accounts that give you the highest yields online.
If you shop around and get to know the rate tables, you can even fetch better yields. The best part of this investment is that you won’t ever lose money if you put it in a savings account. Most accounts are insured by the government, up to nearly $250,000 per account type bank.
Even if the financial organization falls at a loss, you will be compensated. However, there is one risk. Cash does not lose dollar value but inflation can affect its purchasing powers.
2. Series I savings bonds
Series I savings bond is a low-risk one that gets adjusted for inflation. This helps to protect your investment financially. When inflation rises, the interest rates of the bond also increase. But when it falls, the interest rates decrease. You can easily buy a bond of this type from the official treasury institutions.
This Series I Bond adjusts its rates semi-annually on the basis of the inflation rates. If you wish to have more information regarding how to invest in this, you can always take help from the Great Southern Bank (formerly CUA).
They will guide you through the ups and downs of such investments and help you understand where to invest properly. With more than 75 years of experience, it is Australia’s largest customer-owned bank.
3. Money market funds
Money market funds are nothing but a compilation of various CDs (Certificates of Deposits), short-term bonds, or any other low-risk investment schemes.
They are pooled together to diversify the risk and sold by brokerage firms or mutual fund companies. The biggest reason why you should invest in such funds is that a money market fund is liquid in nature.
So you can withdraw these funds whenever you wish to without the fear of any penalty. Your bank will tell you the rates you will receive. The main goal is that the value per share will never be less than $1 USD. For more information on this, contact the Great Southern Bank.
4. Treasury Bills, Notes, or Bonds
Treasury bills, treasury notes, and treasury bonds are also great avenues for high yields. These bills mature in just a year or even sooner, whereas treasury notes can stretch up to nearly a decade.
Treasury bonds take around 30 years to mature. All of these are highly liquid security assets that can be bought or sold via mutual funds in quick steps. The only risk with these assets is that if you buy a negative-yielding bond, there are risks of losing your money.
Even though this is a very rare chance, if you sell these bills or bonds sooner than they mature, you will lose your principal amount. When the interest rates rise, the value of these bonds falls and vice versa.
5. Dividend-paying stocks
Stocks are not as safe as cash, which is why many people are hesitant to invest in the market. But dividend stocks are considered to be much safer than high-growth ones because they pay cash dividends. So their volatility is not completely eliminated but is much less.
Therefore, even if the value of these stocks fluctuates with the market, they will not fall much even when the market collapses. However, one risk is important here. If the company from where you buy the stocks declares itself bankrupt, it can eliminate the dividend entirely.
