Low-Risk Investment With High Returns 🙁 Practical Advice)
It is of significance to keep your expenses under control, stay out of debt, and save as much of your salary as you can. Yes, u can keep pilling money in the bank, it’s safe and available when you need it but because of today’s interest you won’t get much in return so the solution is to invest
- Peer-to-Peer Lending:
P2P Lending is a completely different type of investment; it is also one of the highly recommended short term investments as well. Instead of buying shares in a company (and its future profits) you are lending your money to someone else with the hope they will pay you back. Lending Club, is averaging a default rate of just over 5%. Depending on your appetite for risk and how much capital you have to invest, you could score some decent returns without the stress that comes with high risk investments.
- High Interest Savings Accounts
These accounts, you’ll earn a nominal amount of interest just for keeping your money on deposit. Other than opening your account and depositing your money, this strategy requires almost no effort on your part, either. The best high yield savings accounts offer competitive interest rates without charging any fees.
- Credit Card Rewards
Credit card rewards could provide a low-risk return on your money, might sound preposterous, but it’s not that off the wall when you really think about it. By picking up a cash back credit card, you earn “points” that translate into real money. And in reality, the “rewards” you earn with some of the top cards are far more lucrative than anything you might earn with a Certificate of Deposit or online savings account.
- Certificate of Deposit
With a Certificate of Deposit (CD), you deposit your money for a specific length of time in exchange for a guaranteed return on your money no matter what happens to the interest rates. The government is guaranteeing you cannot have a loss, and the financial institution will give you some interest on top of that.How much interest you earn is dependent on the length of the CD term and the current interest rates when you purchase your CD
Annuities can be a good option for certain investors who need help stabilizing their portfolio over a long period of time.If you’re in the market for an annuity, however, be aware of the risks and talk with a good financial advisor first. Annuities are complex financial instruments with lots of catches built into the contract. They’re taking a lump sum of cash from you. In return, they are giving you a stated rate of guaranteed return. Your annuity is backed by the insurance company that holds it (and perhaps another company that further insurers the annuity company). Nonetheless, your money is typically going to be very safe in these complicated products.
- Treasury Inflation Protected Securities (TIPS)
These bonds come with two methods of growth. The first is a fixed interest rate that doesn’t change for the length of the bond. The second is built-in inflation protection that is guaranteed by the government. Whatever rate inflation grows during the time you hold the TIPS, your investment’s value will rise with that inflation rate. TIPS can be purchased individually or you can invest in a mutual fund that, in turn, invests in a basket of TIPS. The latter option makes managing your investments easier while the former gives you the ability to pick and choose with specific TIPS you want.
- Municipal Bonds
When a government at the state or local level needs to borrow money, they don’t use a credit card. Instead, the government entity issues a municipal bond. These bonds, also known as munis, are exempt from Federal income tax, making them a smart investment for people who are trying to minimize their exposure to taxes. Most states and local municipalities also exempt income tax on these bonds, you avoid income tax (which means a higher return compared to an equally risky investment that is taxed)
- online checking accounts
Online checking accounts let you earn small amounts of interest on the money you deposit. If you’re going to park your money in the bank anyway, you could surely appreciate earning some interest along the way. Best of all, many online checking accounts charge zero or minimal fees to get started.