7 High-Paying, Low-Risk Investments for Your Money
Ever wondered how the rich stay rich? Or how they even get there in the first place? A lot of monetary success is due to proper money management. With the number of banks, financial firms, credit cards, blogs, etc. available – it can be hard to choose where to store your money. Sometimes high reward is high risk, and the reverse can also be true. The trick is sifting through all the extra and finding the best low risk accounts that will grow your money.
Buy Gold
Investing in gold pays off. Specifically, when the value of the dollar decreases, uncertainty arises. When uncertainty is rampant, people are looking to hard valuables – like gold. Invest in gold for hard security when time are tough, and watch the value rise as the economy drops. The data on gold investments is very obvious, always rising in value with the fluctuations of the economy. Other precious metals may be a good idea as well.
Different Countries’ Cash and Currency
Keeping your money in cash is always smart. When dollar value increases, your dollar increases. This logic is apparent when looking to history. In countries where the economy grows, the purchasing power of the currency will grow. There is still the risk of inflation causing your cash to be worth less, but if you want the least risky investment, keep your money in different countries’ currency where you think their economy will boom. Forgo the uncertainty of savings account and their fees and do like grandma did and keep the money under the rug! For example, keeping your money in Euros or British pounds if you are fromChinaor theUSAcould be a smart investment and vice versa.
Online Interest Checking Account
Depending on how much money you invest and how often, an online interest checking account can really pay off. With the proper conditions met, some banks will offer up to 0.5% interest compounded yearly. This particular option takes a lot of research for what is best for you, but most are flexible and low risk. The good think about a checking account is that you can take your money out at any time.
U.S. Treasury Bond
A treasury bond is an investment into theUSgovernment. Bonds pay out according to how aggressive the bond is, and the minimum maturity date is 10 years and maximum is 30 years. This account is not flexible, and you cannot touch your account. The minimum investment is $1,000 – and interest is compounded. A bond is very low risk, as they are backed by theUSgovernment. They pay between 1% and 2.63% interest. The only catch is you won’t be able to touch your money for the term of the bond.
Certificate of Deposit
Commonly referred to as a CD, a certificate of deposit is a time lapsed investment given out by commercial banks and backed by the FDIC. There is limited flexibility on the CD, and usually a penalty is incurred if you draw money out before the maturity date. The return on the CD is usually fixed and averages about 2%, but ranges from how much you deposit. The risk is you won’t be able to touch your money without a penalty if you want to withdraw early.
Online Money Market Account
The advent of the Internet has brought many advantages to the common consumers. A money market account ranks high for its perfect mix of flexibility and stable returns. The average APY is 0.5% and you can deposit and withdraw into the account an average of 6 times per month. Of course, every bank has a different offer – but the above is averaged. Sounds like a sweet deal to me! Money market account’s interest rates change faster than a savings account’s. As the economy grows, the rates get higher and higher.
Online Savings Account
Ditch your local bank for an online savings account. An online savings account will give high yields and exceptional customer service. A brick and mortar location has high costs – from rent to employee salaries. An online savings account opens up funds for a higher interest rate – an average APY of 0.9-1.1%. This is huge, and I believe it is the future of investing and banking. You can also withdraw up to 6 times per year.