Investments That Are Safe

by on October 16, 2010

Investment is connected with the risk of losing profits due to many reasons. Thus, safety comes first when you are selecting a better option to invest your money. Bank accounts, fixed annuities, Certificates of Deposit (CD’s), treasury bonds, treasury notes and bills, are considered to be the most securable investments options in today.

If you are searching for a safe investment, the below listed investment options would be facilitate you to select the best option to invest your money.

Saving Accounts: The most simple and the popular mode of safety investment is the bank savings account. It is more securable as not anyone can access your account except you and you would be offered higher rates of interest. You can simply withdraw money by writing a slip or using ATM cards. In fact, today the banks offer different packages to match with the different financial needs of the people.

Treasury Securities: Treasury bills, notes, bonds and TIPS which are issued by the government are another category of safety investments. You can open a treasury account which is similar to a bank account and have all the benefits of it. Treasury bills are matured in less than 52 weeks and you can sell it at the current market value even before the maturity. Treasury notes can also be purchased with discounts and the interest is paid for 6 months. Treasury bonds which are matured in 30 years from the auction also pay interest for every six months. TIPS which refer to Treasury Inflation-Protected Securities have maturities of 5, 10 and 20 years and you can select one of these short and long term investments according to your requirement.

Certificates of Deposit (CD’s): These are also similar to the bank accounts but you can get higher rates than a normal savings account. When your CD is matured the bank will reinvest in a new CD. When the bank is doing a favor to you by offering higher rates, you need to do a favor to the bank by keeping money in your CD for a long time. Then you can earn more while assuring the safety of your money.

Fixed Annuities:  Fixed annuity is a kind of an agreement with an insurance company. Deferred fixed annuity and immediate fixed annuity are the two different types of annuities. In deferred fixed annuity, you need not to pay tax on interest and you are guaranteed with a fixed interest rate. An immediate fixed annuity enables you to exchange your lump sum of money for a specific field of income which is guaranteed by the company. However, the payments of fixed annuities do not increase with parallel to the inflation.

This list of safety investment options would enables you to select the most appropriate investing mode according to your plans and desires and you would be able to earn more while assuring the safety of your money.

(photo credit: Getty Images)

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