It’s always important to have a rainy day fund in case of emergencies, but you don’t want your money just sitting around not doing anything. That’s why it’s important to invest your money in safe investments that will help keep it more secure.
In this blog post, we will discuss some safe investment options that you can consider for your money. We’ll also talk about the benefits of each option and how they can help protect your cash. So if you’re looking for a safe way to invest your money, be sure to read on!
9+ Safe Investments In 2022 That Will Help Keep Your Cash More Secure
1 . Fixed Deposits (FD)
A fixed deposit (FD) is a safe investment option where you earn guaranteed returns on your principal sum. When you invest in an FD, your money is locked away for a set period – typically between 3 months to 5 years.
In return for this commitment, you’ll typically earn higher interest than what you would get from a savings account.
And best of all, your capital is backed by the government, so you know your money is safe. If you’re looking for a safe investment option with guaranteed returns, then an FD may be right for you.
2 . Post Office Monthly Income Scheme (POMIS)
It is one of the safe investments provided by the post office. Under this scheme, you can invest a minimum of Rs 1,500 per month.
The interest rate for the scheme is 7.6% per annum and it is payable monthly. The investment tenure for the scheme is 5 years.
This scheme is open to all Indian residents including NRIs. POMIS provides an opportunity to earn a regular income by investing in safe and secure instruments.
Post Office Monthly Income Scheme is a good option for those who are looking for safe and long-term investments.
3 . Long-Term Government Bonds
These bonds are safe investments because they are backed by the full faith and credit of the US government. This means that the government has pledged to pay the bondholders their interest payments and principal when the bonds mature.
Long-term government bonds typically have maturities of 10 years or more. Because they are safe investments, long-term government bonds typically offer lower interest rates than other types of investments, such as stocks and real estate.
However, this also means that long-term government bonds are not as volatile as other investments and can provide stability for investors looking for a safe investment.
4 . Public Provident Fund (PPF)
It is one of the safe investments available in India. Any resident Indian can open a PPF account with any scheduled bank or post office.
The minimum yearly deposit in a PPF account is Rs. 500 and the maximum is Rs. 1,50,000. The interest earned on PPF is exempt from income tax. The current interest rate on PPF is 7.1% per annum.
The interest is compounded annually but calculated monthly and credited at the end of the financial year.
PPF deposits have a lock-in period of 15 years which can be extended in 5-year blocks after the initial 15 years. Partial withdrawals are allowed from the 7th financial year onwards subject to certain conditions.
After the maturity of 15 years, the PPF account holder can choose to withdraw the entire amount or leave it in the account and continue to earn interest on it. Withdrawals from PPF are completely tax-free.
Overall, PPF is a safe investment option with reasonable returns and tax benefits which makes it an attractive investment instrument for long-term goals such as retirement planning.
5 . Corporate bonds
These bonds are safe investments that provide predictable income streams. For example, if you purchase a bond for $1,000 with a 5% coupon rate, you can expect to receive $50 in interest payments every year.
In addition, corporate bonds tend to be less volatile than stocks, making them an ideal choice for risk-averse investors.
As with any investment, however, it is important to do your research before purchasing corporate bonds.
You’ll want to consider the financial stability of the company and the current market conditions. But if you’re looking for a safe way to earn a steady return on your investment, corporate bonds are worth considering.
6 . Dividend Stocks
For many people, a stock market is a scary place. It can be volatile and unpredictable, and it’s often hard to know when to buy or sell.
However, there is one type of stock that can offer stability and peace of mind: dividend stocks. Dividend stocks are safe investments that pay out regular dividends, regardless of the ups and downs of the market.
This makes them an ideal choice for people who want to invest for the long term. In addition, dividend stocks often have a lower risk than other types of stocks, making them a good option for people who are new to investing.
If you’re looking for a safe and reliable investment, dividend stocks are worth considering.
7 . Mutual Funds
A mutual fund is an investment vehicle that is made up of a pool of funds collected from many investors. The money in the fund is then used to purchase stocks, bonds, or other assets.
Mutual funds are managed by professional money managers, so they can be a safe investment for people who don’t have the time or knowledge to invest on their own.
There are many different types of mutual funds, so investors can choose the one that best fits their goals.
For example, some funds focus on growth, while others are designed to provide income. Some funds focus on specific sectors like healthcare or technology. Whatever your goals, there’s a mutual fund out there that can help you achieve them.
8 . Real Estate Investment
Many people believe that real estate investing is a safe and profitable way to earn money. After all, since everyone needs a place to live, there will always be a demand for housing. And as the population grows, the demand for housing will only rise.
As a result, prices are likely to continue to rise, providing investors with a healthy return on their investment.
In addition, real estate is a comparatively safe investment. Unlike stocks or other securities, it is not subject to the whims of the marketplace.
As long as you choose your property wisely and manage it carefully, you should be able to earn a steady income from your investment.
9 . High-yield savings accounts
A high-yield savings account is a safe investment that offers a higher interest rate than a standard savings account. This type of account is typically offered by online banks and credit unions.
Many high-yield savings accounts require a minimum balance, but they often offer higher interest rates and lower fees than traditional banks.
One of the key benefits of a high-yield savings account is that your money is FDIC insured, which means it is safe from loss in the event of a bank failure. Another benefit is that you can typically earn more interest on your deposited funds.
In addition, high-yield savings accounts often offer features such as mobile check deposits and online bill pay. As you can see, there are many reasons to consider opening a high-yield savings account.
10 . Money market funds
These funds are safe investments that offer a higher return than a traditional savings account. They are typically offered by mutual fund companies and can be invested in through a broker.
Money market funds invest in short-term debt, such as Treasury bills and commercial paper. Because of this, they can offer a higher yield than other types of investments.
However, money market funds are not without risk. They are subject to interest rate risk, which means that their value can go up or down depending on changes in interest rates.
Nevertheless, money market funds are still a safe investment for those who are looking for a higher return than what a traditional savings account can offer.
So, there you have it! Nine (plus) safe investments to keep your cash more secure in 2022. We hope this list provides a little peace of mind and helps you rest easy knowing that your money is working hard for you. Have any other tips on how to keep your finances safe? Let us know in the comments below – we’d love to hear tips from you!
Next Read: Six businesses you should avoid investing or starting in a recession