The Safest Way to Grow Your Money

Shawn Plummer

CEO, The Annuity Expert

In today’s fast-paced world, finding secure and reliable ways to grow your hard-earned money is essential. Whether new to investing or a seasoned investor, selecting safe investment options is crucial to your financial well-being. This guide aims to provide you with an understanding of various safe investment options to help you achieve your financial goals while minimizing risk. We’ll explore the benefits and drawbacks of each so that you can make an informed decision about the best path forward. So, let’s dive in and learn how to protect and grow your wealth smartly!

Bank Savings Accounts


Bank savings accounts are perhaps the most straightforward and familiar safe investment option. They offer a low but stable interest rate on your deposits. In addition, savings accounts are federally insured by the Federal Deposit Insurance Corporation (FDIC) in the United States, which means your money is protected by up to $250,000 per depositor, per bank. This makes savings accounts one of the safest places to store your cash.


While bank savings accounts are undoubtedly secure, their interest rates tend to be lower than other investment options. This means your money may not grow as quickly and may not keep pace with inflation over time. As a result, they may be better suited for emergency funds or short-term financial goals.

Certificates of Deposit (CDs)


Certificates of Deposit (CDs) are another low-risk investment option banks and credit unions offer. They typically provide higher interest rates than savings accounts in exchange for locking in your money for a specified period (usually between 3 months and five years). Like savings accounts, CDs are insured by the FDIC or National Credit Union Administration (NCUA), making them a safe choice for your money.


The primary drawback of CDs is the lack of liquidity. You’ll have to pay the penalty if you withdraw your money before the term ends, which can affect your returns. Additionally, CD interest rates may not keep up with inflation, so it’s crucial to consider this before choosing a CD as your safe investment option.


Government Bonds

Government bonds are debt securities governments issue to fund public projects and national finance debt. They are generally considered low-risk investments because they are backed by the government that issues them. US Treasury bonds, for instance, are considered one of the safest investments in the world.

Municipal Bonds

Municipal bonds are issued by state, county, or local governments to finance public projects. These bonds are generally considered safe, but their risk varies depending on the financial health of the issuing municipality. One advantage of municipal bonds is that their interest income is often exempt from federal income taxes and, in some cases, state and local taxes.

Corporate Bonds

Companies issue corporate bonds to raise ca, and they typically offer higher yields than government or municipal bonds but also carry a higher risk of default. To minimize this risk, consider investing in investment-grade bonds with higher credit ratings and less likely to default.

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Dividend-Paying Stocks


Dividend-paying stocks are shares of established companies that distribute a portion of their profits to shareholders as dividends. These stocks can provide a steady income stream while offering the potential for capital appreciation, making them a safe investment option for long-term investors.


It’s important to note that dividend-paying stocks carry more risk than bonds or savings accounts. The value of stocks can fluctuate due to market conditions, and companies may reduce or eliminate dividends if their financial situation changes. To minimize risk, consider investing in well-established, financially stable companies with a history of paying consistent dividends.

Index Funds


Index funds are a type of mutual fund or exchange-traded fund (ETF) designed to track the performance of a specific market index, like the S&P 500. They offer a low-cost, diversified approach to investing in the stock market, reducing the overall risk compared to individual stock investments. In addition, index funds typically have lower fees than actively managed funds, which can improve your long-term returns.


While index funds are generally considered a safe investment option, they still carry the inherent risk of investing in the stock market. Market fluctuations can impact the value of your investment, so it’s essential to have a long-term investment horizon and be prepared to ride out any short-term volatility.

Safest Way To Grow Money

Fixed And Fixed Indexed Annuities

Fixed Annuities


Fixed annuities are insurance products that guarantee a fixed rate of return on your investment. As a result, these annuities provide a steady, predictable income stream during the annuitization phase, making them an appealing option for retirees or those seeking a reliable income source. Additionally, fixed annuities offer tax-deferred growth, meaning you don’t pay taxes on your earnings until you begin receiving payments.


One of the main drawbacks of fixed annuities is their lack of liquidity. In addition, withdrawals made before the end of the surrender period may be subject to penalties and fees. Moreover, the returns on fixed annuities may not keep up with inflation, which could diminish your purchasing power over time. Finally, it’s crucial to consider the financial strength of the insurance company issuing the annuity, as the safety of your investment relies on their ability to fulfill their obligations.

Fixed Indexed Annuities


Fixed-indexed annuities are a variety of fixed annuities that offer the potential for higher returns by linking your earnings to the performance of a market index, such as the S&P 500. This allows for more significant growth during solid market periods while providing a minimum guaranteed return to protect your investment during market downturns. In addition, like fixed annuities, fixed-indexed annuities offer tax-deferred growth and a steady income stream during the annuitization phase.


While fixed-indexed annuities offer the potential for higher returns, they can also be more complex and more challenging to understand than traditional fixed annuities. Additionally, their returns may be capped or limited by participation rates, which could reduce your overall earnings. Like fixed annuities, liquidity can be an issue, and early withdrawals may incur penalties and fees. It’s also essential to evaluate the financial strength of the issuing insurance company to ensure the safety of your investment.

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Next Steps

Safe investment options are a crucial component of any well-rounded financial plan. By understanding the benefits and drawbacks of each option, you can make informed decisions that best align with your risk tolerance and financial goals. Ultimately, the right mix of safe investments will depend on your unique circumstances, so take the time to carefully evaluate your options and consider consulting with a financial advisor for personalized guidance.

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Frequently Asked Questions

Which of the following is the riskiest form of investment?

Stocks have historically earned the highest average rate of return over many decades. However, it’s important to note that investing in stocks comes with inherent risks and no profit guarantees.

How safe is a real estate investment?

To profit from real estate investing, knowing the risks involved is crucial. These risks include undesirable locations, unfavorable cash flows, a high rate of empty properties, and problematic tenants. It’s also important to note the potential lack of liquidity, concealed structural issues, and the uncertain behavior of the real estate market.

What is the safest investment with the highest return?

Aiming for high returns while avoiding high risks often leads investors to opt for treasury bonds, certificates of deposit (CD), and exchange-traded funds (ETF). First, however, it’s essential to research and compare the risks and potential returns before making investment decisions.

Where should I keep my money to get the highest rate of return?

Some options to consider are certificates of deposit, money market accounts, treasury bonds, and Treasury Inflation-Protected Securities.

What is the best investment without losing money?

In September 2023, some of the recommended low-risk investments include short-term certificates of deposit, money market funds, treasury bills, notes, bonds, TIPS, and corporate bonds.

What are the four types of investments that you should always avoid?

The following should be avoided: subprime mortgages, annuities, penny stocks, high-yield bonds, private placements, traditional savings accounts at central banks, the investment your neighbor just doubled his money on, and the lottery.

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Shawn Plummer

CEO, The Annuity Expert

I’m a licensed financial professional focusing on annuities and insurance for more than a decade. My former role was training financial advisors, including for a Fortune Global 500 insurance company. I’ve been featured in Time Magazine, Yahoo! Finance, MSN, SmartAsset, Entrepreneur, Bloomberg, The Simple Dollar, U.S. News and World Report, and Women’s Health Magazine.

The Annuity Expert is an online insurance agency servicing consumers across the United States. My goal is to help you take the guesswork out of retirement planning or find the best insurance coverage at the cheapest rates for you. 

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