What Are Some Safe Ways to Invest Money?

What Are Some Safe Ways to Invest Money?

Having a savings account, certificate of deposit, acquiring a savings bond and treasury bills are some safe ways to invest money as of 2015. An individual can invest his money in the above ways and not worry about it, according to Money Crashers.

It is important for an individual to open a savings account to stash his extra money. The terms of a savings account vary from one bank to another. For example, some banks give high returns for high minimum balances. A savings account grants an individual access to his money any time he wants it, and that makes it a safe way to invest money, explains Money Crashers.

A certificate of deposit has high-interest returns and has the same characteristics with an interest-earning savings account. An individual can purchase a certificate of deposit from an investment firm or bank for periods exceeding six months, after which he earns all accrued interest and the invested principal, says Money Crashers.

A savings bond is another safe way to invest money. Savings bonds have two principal variations. These are I bonds and EE bonds. Despite being fixed, EE bonds guarantee payment of interest rates for 30 years. On the other hand, I bonds have an interest rate that changes after every six months. Savings bonds are good for those who feel that the rates of inflation can continue rising, says Money Crashers.

Treasury bills are the another way of safely investing money, according to Money Crashers. Treasury bills mature in less than a year, and an individual can buy them through an action process from the bank, broker or website.