Investors need to have peace of mind when it comes to their investments and returns. The markets are volatile and unsettled these days. Therefore, most people avoid investing in stocks and look for safe investments with high returns amid a volatile financial environment. Stable and safe investments help protect one’s money and provide good growth during challenging times. Let us look into the top five investments that offer high returns.

High-yield savings accounts
They are recognized as the safest and most secure accounts for an individual’s funds. They provide a safe investment channel and strong returns with no presence of risk. These accounts are FDIC (Federal Deposit Insurance Corporation) insured. They are immune to market fluctuations and highly liquid, like any other savings account. However, one fact associated with these high-yield savings accounts is that the rate can change when current market conditions change. The payouts are not as attractive when the rates fall. Investors have been facing this dilemma for the past few years. However, FDIC-insured accounts offer the highest safety, and the rates are pretty good. Therefore, they can be considered safe investments with high returns.

Certificates of deposit
If one does not instantly need cash and is looking to earn more from the savings account, certificates of deposit are good investment platforms, per experts. These deposits are similar to the savings account, but they are liquid, and most are FDIC-insured to offer significant safety. With the certificates of deposit, one has to set the duration of the investment, and there is a penalty if one accesses the cash before maturity. Generally, the time horizon is between one month and 10 years. Therefore, if one needs money before the maturation date, one must look for and find other safe investments with high returns. Usually, certificates of deposit offer higher returns than savings accounts. But they offer less flexibility as there is a penalty if one withdraws the cash before the set time limit. However, if money is withdrawn after the prescribed time frame, these are the best and safest investments that offer high returns.

Treasury bonds
T-Bonds are considered the safest investments as far as other options are concerned. They work just like certificates of deposit. Investments need to be made with a defined interest rate and date of maturity. This duration ranges from 10 to 30 years from when one purchases the bond. These bonds are guaranteed by the government and, therefore, can be fully trusted. Therefore, T-Bods are considered safe investments with high returns, similar to FDIC-insured bank accounts. One may buy treasury bonds directly from the US Treasury. They can also be bought from secondary markets. However, experts say one should buy from the Treasury rather than the secondary market to avoid additional costs. Treasury bonds, treasury bills, TIPS (Treasury-Inflation Protected Securities), and treasury notes are the four virtually safe and risk-free government-issued securities. All these securities show variations in coupon payments and maturity.

Municipal bonds
Local and state governments offer municipal bonds. These bonds are a great option for slightly higher returns. They come with the benefit of being untaxed at the federal level. However, local and state government bonds are much riskier than treasury bonds. Therefore, municipal bonds are the best choice if one is looking for comparatively safer bonds.

Corporate bonds
These are slightly riskier and less safe than treasury bonds. However, they are investments with high returns if one sticks to the primary blue-chip public companies. As far as corporate bonds are concerned, it is suggested to avoid lower-rated options. It’s also highly significant to review and read the ratings on bonds to make safe investments. The other options are highly risky and do not fall in the realm of safe investments that offer high returns. One may purchase bonds from an online broker, but experts say many transactions charge higher fees. If bond holdings need to be diversified, these bonds are the best option.

This post has explored and detailed five safe investments with high returns. However, there is no such thing as a risk-free investment. The safe investments counted above come with various risks, such as loss of purchasing power during inflationary pressure. Therefore, investing in any option with the advice of a financial expert is suggested to ensure one’s hard-earned money is invested rightly and appropriately. This post does not intend to replace a financial advisor’s recommendation and advice. We hope the information provided in this post helps you take an informed decision when you plan on investing in the stock market.