People are understandably wary these days about putting their money into anything other than a savings account. With all of the economic troubles the United States has seen over the past decade, it’s easy to see why people might think of “investing” as a dirty word.
There are, however, some relatively safe investing options that will allow you to keep your money safe while being able to at least preserve its value. Here are a few that you might consider:
- Savings bonds. There are a couple different types of savings bonds, each of which will help you to preserve your savings. One, known as an EE bond, is a fixed-rate bond that will pay a certain, set rate of interest over the course of 30 years. Another type, known as an I bond, has interest rates that change to reflect inflation.
- Treasury bills. These are more short-term investing options that mature in less than a year. Treasury bills have a value of $1,000 but are sold at a discount, so when you redeem the bond you earn a certain amount of interest based on the difference between the price you paid and the face value of the bill.
- Treasury bonds. These are basically the opposite of treasury bills in the sense that they’re long-term securities, maturing after about 30 years. They pay out interest to their holder every six months and have a face value of $100.
- Savings certificates/certificates of deposit (CDs). It is possible to find credit unions or other financial institutions that offer CD rates that are quite a bit better than what you’d find on most securities from the U.S. Treasury.
- Savings accounts. Chances are you’ve already got one, but their importance can’t be overstated. The greatest benefit of savings accounts is that they make it easy to move or withdraw money.
As with all important investing decisions, you should talk to the people at your credit union or a financial adviser if you have any questions about your options.
What are some other safe investment options that you would recommend?