The Safest Places To Put Your Money Today

Investments have always been very risky for those who rely on them, as the value of stocks can plummet at any time. For those looking to build a financial portfolio and who are looking for safer places to put their money, there are other options for them. These may not pay the same rate of return as stocks, but they are typically more secure.

1. Savings accounts

These accounts typically yield a very small rate of return but they are the safest place to put your money. They also have the fewest restrictions. If you need to keep your money available at all times while still having it work for you, a savings account can be the best choice. Shop around, even online, to find the best interest rate for your money.

2. Certificates of deposit

A certificate of deposit or CD is like a savings account, but it has a maturity date, meaning that you need to keep your money in that account for a certain amount of time or you would face a penalty. These types of accounts are very secure in that they don't fluctuate when it comes to their value, just like a savings account. You know upfront the rate of return when it comes to interest and any penalties you might face for early withdrawal.

As with a savings account, shop around to find the best CD rate for your investments. You can even go online and look for banks and financial institutions that only operate over the internet for a good rate.

3. Money market accounts

A money market account or MMA is a federally insured account that pays you interest over time. It often requires a minimum balance and may restrict how often an account holder can withdraw money, in exchange for a better return or interest rate. Banks and credit unions offer MMAs and you can even find them at online institutions. Ensure that you choose one that is federally insured or you could lose your entire principal if the financial institution should fail.

4. Treasury bonds

A treasury bond is like a loan to the federal government. You purchase the bond and it earns a certain amount of interest for a certain time, and then after this the bond has "matured" and you earn even more interest. Because these are purchased from the government, they are federally insured so they are a less risky investment than purchasing stocks that may fluctuate in value.

For more information, contact Rio Grande Credit Union or a similar company.