FX.co ★ 7 Safest Investments

Many analysts are sure that the cryptocurrency is the greatest economic bubble in history, which will burst in the near future and entail significant financial losses for investors. However, experienced market players will be able to make money even on the bubble. And we present to your attention a list of the safest types of investments that will let you save money, even if you are not a professional trader.

Savings Accounts

Perhaps the simplest and most convenient place to store your money is a basic savings account. Savings accounts are almost completely liquid: You can get your money out at any time, through any branch or ATM. In addition, by keeping your money on a savings account, you are guaranteed to receive an interest set by the bank.

The main types of investments using a savings account can be divided into two types: interest rate and account balance. Right now, the average savings account pays only 0.06% in interest – not enough to keep up with inflation. But with a little effort, you can probably find an account that offers enough interest to keep your savings balance more or less on par with inflation.

Money Market Accounts

A money market account is a money deposit, the funds from which a bank customer can not withdraw within the agreed period. The bank uses the client's money for its own needs, but after the expiration of the set period the bank returns to the depositor his funds and accrues interest for the storage of money.

Money market accounts generally pay a bit more interest than savings accounts at the same bank. You need a minimum balance to open an account. Banks require a higher minimum balance for a money market account than for a basic savings account.

Rewards Checking Accounts

Savings accounts pay more interest than checking accounts but you still can get a small interest. The main advantage of such account is the possibility of withdrawing money at any time. As experts note, it is rather difficult to obtain large incomes from this type of investment; however, it is not bad for personal savings.

Certificates of Deposit

A certificate of deposit, or CD, is basically a fixed-term loan that you make to your bank. You agree to let the bank keep your money for a specified amount of time, such as six months, one year, or two years. In exchange, the bank agrees to pay you a guaranteed rate of interest when the CD matures – that is, when the loan term is up. The longer the term of the CD, the more interest it pays.

Treasury Securities

In Russia, only two banks provide government bonds - Sberbank and VTB. The government offers to buy securities at a high rate, the amount of which is much higher than the interest on a standard bank deposit. At the same time, the size of the rate is growing every year, which makes this type of investment profitable, with long period of storage of bonds.

Investment funds

Open-end fund is a collective investment scheme which can issue and redeem shares at any time. The depositor is the owner of a certain share in the property of the fund. Most open-end funds are actively managed, meaning that a portfolio manager picks the securities to buy. In investment funds, the depositor receives more profit, but the potential risks are much higher.

Short-Term Bond Funds

This is a type of mutual fund investing in short-term securities with low risk. This type of investment can bring significant profits, but special attention should be paid to the safety of monetary investments.