7 Best Safe Investments Of April 2024 (2024)

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Keeping a portion of your portfolio in safe investments is a smart source of diversification. When volatility spikes and markets swoon, you’ll benefit from the stability provided by holding safe, highly liquid investment assets.

Low price volatility and little chance of losing your principal investment are the hallmarks of safe investments. They typically have lower returns than riskier assets, but that’s for the best. Investors choose safe investments when they want to protect their capital.

The Best Safe Investments of April 2024

Investment TypeSafetyLiquidity

Treasury bills, notes and bonds

High

High

Money market mutual funds

High

High

Treasury Inflation-Protected Securities (TIPS)

High

High

High-yield savings accounts

High

High

Series I savings bonds

High

Low

Certificates of deposit (CDs)

High

Low

Investment-grade corporate bonds

Moderate

Moderate

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Treasury Bills, Notes and Bonds

  • Safety: High
  • Liquidity: High

U.S. Treasury securities are considered to be about the safest investments on earth. That’s because they are backed by the full faith and credit of the U.S. government.

Government bonds offer fixed terms and fixed interest rates. Treasury bills, commonly known as T-bills, have maturities of four, eight, 13, 26 and 52 weeks. Treasury notes come in maturities of two and 10 years. Treasury bonds have maturities of 20 to 30 years.

The market for Treasury bills, notes and bonds is larger and more liquid than any other. That means you won’t have any trouble selling Treasury securities if you need to cash out before they reach their full maturity date.

Money Market Mutual Funds

  • Safety: High
  • Liquidity: High

Money market mutual funds are highly liquid, ultra-safe mutual funds that are a popular choice for short-term cash management needs. They hold short-term debt securities with high credit quality, such as Treasury bills, commercial paper and certificates of deposit (CDs).

Money market mutual funds feature low costs and very high liquidity, but they also offer lower returns than most other types of mutual funds. When market professionals talk about moving parts of their portfolios “into cash,” they typically mean putting it in money market mutual funds.

As with any mutual fund, money market funds cannot guarantee earnings or savings on principal, but their stringent qualifications help them achieve greater principal preservation than other options.

Treasury Inflation-Protected Securities (TIPS)

  • Safety: High
  • Liquidity: High

Sold in terms of five, 10 or 30 years, Treasury Inflation-Protected Securities (TIPS) are government bonds that do precisely what their name suggests: Protect your money from the ravages of inflation.

With TIPS, the value of your principal rises or falls over the term of the security, depending on the current rate of CPI inflation. The interest rate on each security is fixed, but since the principal fluctuates in value, your interest payments also rise and fall.

At maturity, if the principal is higher than your original investment, you keep the increased amount. If the principal is equal to or lower than your principal investment, you get the original amount back. TIPS pay interest every six months, based on the adjusted principal.

High-Yield Savings Accounts

  • Safety: High
  • Liquidity: High

While the options listed above offer unbeatable liquidity, no other safe investment offers the ease of access you get with a high-yield savings account. Deposits of up to $250,000 are insured by the Federal Deposit Insurance Corp., which ensures they are ultra-safe investments.

A high-yield savings account is a type of savings account that typically offers higher interest rates than a traditional savings account. The best high-yield savings accounts are typically offered by online banks and credit unions.

Series I Savings Bonds

  • Safety: High
  • Liquidity: Low

I bonds are a type of U.S. savings bond that aim to keep pace with rising prices. This means they’re specifically designed to help protect your cash value from inflation.

I bonds won’t ever lose the principal value of your investment, either, and the redemption value of your I bonds won’t decline. Plus, they’re exempt from state and local income taxes, and the interest earned is added to the value of the bond twice a year, making the principal amount that you earn interest on higher every six months.

While I bonds are very safe investments, they aren’t nearly as liquid as the options above. You cannot cash out your I bonds until you’ve held them for one year. To receive all interest due you must own them for at least five years—if you cash out somewhere between one and five years, you’ll forfeit three months worth of interest.

Certificates of Deposit (CDs)

  • Safety: High
  • Liquidity: Low

Certificates of deposit combine decent interest rates with guaranteed return of your principal, and they also benefit from FDIC insurance on balances up to $250,000.

While these qualities make CDs a very safe investment, they are not considered to be very liquid assets. They offer a range of terms, from three months to ten years, but withdrawing the principal ahead of the maturity date often means paying early withdrawal penalty fees or forgoing interest payments

CDs are best for short-term financial goals when the maturity date matches your time horizon—that is, when you believe you’ll need your cash.

Investment-Grade Corporate Bonds

  • Safety: Moderate
  • Liquidity: Moderate

Investment-grade corporate bonds are fixed income securities sold by companies to fund their operations. These types of fixed-income securities are highly rated by credit rating agencies, which evaluate the financial health of the issuing companies. Investment grade means the companies are very likely to pay you interest and return your principal.

Since companies can and do go bankrupt, corporate bonds are less safe than the options listed above. But unlike stocks, companies are still required to make timely payments to bondholders.

If companies run into trouble, they could face credit rating downgrades, which could possibly make their bonds no longer investment grade. In exchange for these higher risks, potential returns are better than the options above. And the market for investment-grade corporate bonds is considered to be very liquid.

What Is a Safe Investment?

Safe investments are investments that should maintain your principal, grow modestly and still be liquid enough to convert to cash when you’re ready.

There are many kinds of safe investments on the market today. We’ve included what our experts believe are some of the best options in the list above.

How Does a Safe Investment Work?

A safe investment works by minimizing risk. However, by minimizing risk, you could also be sacrificing liquidity and growth.

For this reason, it’s often recommended that younger investors—those farther away from retirement age—take a chance on more volatile investments with the potential for larger returns.

The closer you are to retirement age, the less risk you want to take with your investments. This is because there’s less opportunity to build or recoup your principal if it’s lost.

Which Safe Investments Do You Need?

No investment is completely safe from risk. To decide what’s best for you, think about how much risk you are willing to tolerate and how much liquidity you require.

If stability is your ultimate goal, any of the above options will allow you to invest in a way that almost guarantees you come out at the end with at least a bit more money than you started.

Safe Investment Frequently Asked Questions (FAQs)

What is the safest investment with the highest return?

Safe investments tend to provide at best modest returns. The objective is not high returns, but rather preservation of your principal and good liquidity so you can access your capital when you need it. The returns on the investments above are highly dependent on prevailing market conditions.

What percentage of your portfolio should be safe investments?

The percentage of your portfolio that should be allocated to safe investments depends on your individual financial situation, investment goals and risk tolerance. As a general rule of thumb, some financial experts suggest allocating around 10% to 20% of your portfolio to safe investments.

What are the safest types of investments?

U.S. Treasury securities, money market mutual funds and high-yield savings accounts are considered by most experts to be the safest types of investments available.

7 Best Safe Investments Of April 2024 (2024)

FAQs

What is the best investment in 2024? ›

11 best investments right now
  • High-yield savings accounts.
  • Certificates of deposit (CDs)
  • Bonds.
  • Money market funds.
  • Mutual funds.
  • Index Funds.
  • Exchange-traded funds.
  • Stocks.
Mar 19, 2024

What is the safest investment with the highest return? ›

Here are the best low-risk investments in April 2024:
  • High-yield savings accounts.
  • Money market funds.
  • Short-term certificates of deposit.
  • Series I savings bonds.
  • Treasury bills, notes, bonds and TIPS.
  • Corporate bonds.
  • Dividend-paying stocks.
  • Preferred stocks.
Apr 1, 2024

What is the safest investment to not lose money? ›

The Bottom Line

Safe assets such as U.S. Treasury securities, high-yield savings accounts, money market funds, and certain types of bonds and annuities offer a lower risk investment option for those prioritizing capital preservation and steady, albeit generally lower, returns.

What investment is 100% safe? ›

What are the safest types of investments? U.S. Treasury securities, money market mutual funds and high-yield savings accounts are considered by most experts to be the safest types of investments available.

Where do I put cash 2024? ›

Overview: Best investments in 2024
  • High-yield savings accounts. Overview: A high-yield online savings account pays you interest on your cash balance. ...
  • Long-term certificates of deposit. ...
  • Long-term corporate bond funds. ...
  • Dividend stock funds. ...
  • Value stock funds. ...
  • Small-cap stock funds. ...
  • REIT index funds.

What stock will boom in 2024? ›

2024's 10 Best-Performing Stocks
Stock2024 return through March 31
SoundHound AI Inc. (SOUN)177.8%
Vera Therapeutics Inc. (VERA)180.4%
Avidity Biosciences Inc. (RNA)182%
Arcutis Biotherapeutics Inc. (ARQT)206.8%
6 more rows
Apr 1, 2024

Should a 70 year old be in the stock market? ›

If you're 70, you'd look at sticking to 40% stocks. Of course, there's wiggle room with this formula, and it's really just a way to get started. And for many older investors, a 50-50 split of stocks and bonds is what's preferred throughout retirement, and that's fine, too.

What is the safest and best way to invest $100000? ›

Best Investments for Your $100,000
  • Index Funds, Mutual Funds and ETFs. If you're looking to invest, there are a lot of options. ...
  • Individual Company Stocks. ...
  • Real Estate. ...
  • Savings Accounts, MMAs and CDs. ...
  • Pay Down Your Debt. ...
  • Create an Emergency Fund. ...
  • Account for the Capital Gains Tax. ...
  • Employ Diversification in Your Portfolio.
Dec 14, 2023

Which investment is best for senior citizens? ›

Best Investment Options For Senior Citizens In India
  • Best Investment Plan for Senior Citizens.
  • ‌Senior Citizen Saving Scheme (SCSS)
  • Pradhan Mantri Vaya Vandana Yojana.
  • National Pension System (NPS)
  • Equity Linked Savings Scheme (ELSS)
  • Senior Citizen Fixed Deposits.
  • Why is Investing for Senior Citizens Important?

What are 3 very risky investments? ›

While the product names and descriptions can often change, examples of high-risk investments include: Cryptoassets (also known as cryptos) Mini-bonds (sometimes called high interest return bonds) Land banking.

Where can I get 10 percent return on investment? ›

Investments That Can Potentially Return 10% or More
  • Stocks.
  • Real Estate.
  • Private Credit.
  • Junk Bonds.
  • Index Funds.
  • Buying a Business.
  • High-End Art or Other Collectables.
Sep 17, 2023

Where is the safest place to keep cash at home? ›

Where to safely keep cash at home. Just like any other piece of paper, cash can get lost, wet or burned. Consider buying a fireproof and waterproof safe for your home. It's also useful for storing other valuables in your home such as jewelry and important personal documents.

What is the number 1 rule investing? ›

Warren Buffett once said, “The first rule of an investment is don't lose [money]. And the second rule of an investment is don't forget the first rule.

What is the smartest way to invest $100,000? ›

8 Ways to invest $100K
  • Max out contributions to retirement accounts. ...
  • Invest in mutual funds, ETFs, and index funds. ...
  • Buy dividend stocks. ...
  • Buy bonds. ...
  • Consider alternative investments. ...
  • Invest in real estate. ...
  • Fund a health savings account (HSA) ...
  • Park your cash in an interest-bearing savings account.
Mar 20, 2024

What is the safest asset to own? ›

Key Takeaways
  • Understanding risk, including the risks involved in investing in the major asset classes, is important research for any investor.
  • Generally, CDs, savings accounts, cash, U.S. Savings Bonds and U.S. Treasury bills are the safest options, but they also offer the least in terms of profits.

Will 2024 be good for stocks? ›

Analysts project 11.5% earnings growth and 5.5% revenue growth for S&P 500 companies in 2024. Fortunately, analysts see positive earnings and revenue growth for all eleven market sectors this year.

Where to invest $50,000 for 3 years? ›

The safest way to invest $50,000 would be to put it into a savings account or CD. However, you could also invest in stocks or real estate, start or add to a retirement account, and more. Your goals, risk tolerance, and time horizon until retirement will determine the right choice for you.

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