When choosing an investment, you should consider the risk level that you are comfortable with. While there is never a guarantee of return, investing in safe investments has a lower risk than riskier ones. Savings accounts and CDs offer safe investment options that yield steady returns without the risk of sudden market fluctuations. In case of a loss, the Federal Deposit Insurance Corporation (FDIC) will cover up to $250,000, which means that you will never lose money more than you invest.
Savings accounts are also a safe investment option, but they are not the safest. Savings accounts earn less than CDs, which are insured by the FDIC. However, a savings account can be a good choice because you can withdraw the money any time you want. Besides, saving accounts can also provide you with some peace of mind when the market is struggling. Gold, for example, can hold its value over the long term. If you are comfortable with that risk, you can invest in a gold CD.
The main benefit of investing in safe investments is the protection they provide against volatility. While stocks are not as risky as government debt or cash, they do not offer a great deal of upside. Inflation is another factor to consider when choosing safe investments. Inflation has eroded the value of money over time, so you’ll want to look for investments that provide modest growth.