Where Can I Invest My Money Without Risk? 10 Safe Options for 2025

“Expert verified” means that our Financial Review Board thoroughly evaluated the article for accuracy and clarity. The Review Board comprises a panel of financial experts whose objective is to ensure that our content is always objective and balanced.

Bankrate is always editorially independent. While we adhere to strict , this post may contain references to products from our partners. Heres an explanation for . Our is to ensure everything we publish is objective, accurate and trustworthy. Bankrate logo.

Founded in 1976, Bankrate has a long track record of helping people make smart financial choices. We’ve maintained this reputation for over four decades by demystifying the financial decision-making process and giving people confidence in which actions to take next.

Bankrate follows a strict editorial policy, so you can trust that we’re putting your interests first. Our content is written by professionals with a lot of experience and is edited by experts in the field to make sure it is fair, correct, and reliable.

Our reporters and editors who write about investing focus on the things that people care about most, like how to get started, the best brokers, different types of investment accounts, how to choose investments, and more. This way, you can feel good about putting your money into investments.

The investment information provided in this table is for informational and general educational purposes only and should not be construed as investment or financial advice. Bankrate does not offer advisory or brokerage services, nor does it provide individualized recommendations or personalized investment advice. Investment decisions should be based on an evaluation of your own personal financial situation, needs, risk tolerance and investment objectives. Investing involves risk including the potential loss of principal. Bankrate logo.

Bankrate follows a strict editorial policy, so you can trust that we’re putting your interests first. Our award-winning editors and reporters create honest and accurate content to help you make the right financial decisions.

We value your trust. We want to give readers information that is both correct and fair, and we have editorial standards in place to make sure that happens. Our editors and reporters thoroughly fact-check editorial content to ensure the information you’re reading is accurate. We maintain a firewall between our advertisers and our editorial team. Our editorial team does not receive direct compensation from our advertisers.

Bankrate’s editorial team writes on behalf of YOU – the reader. Our goal is to give you the best advice to help you make smart personal finance decisions. We follow strict guidelines to ensure that our editorial content is not influenced by advertisers. Our editorial team receives no direct compensation from advertisers, and our content is thoroughly fact-checked to ensure accuracy. So, whether you’re reading an article or a review, you can trust that you’re getting credible and dependable information. Bankrate logo

If you have a lot of cash and are wondering “where can I invest my money without risk?” you’re not alone. With the way the economy is right now, it seems impossible to find truly safe places to put your money. But don’t worry—I’ve already done the research for you.

As the saying goes, “no investment is 100% risk-free,” but there are some options that are pretty darn close. Today, I’m going to show you the best low-risk investment options you can make in 202025 that will help you keep your money safe while still earning some returns.

Understanding the Risk-Reward Trade-Off

Before diving into specific investment options, let’s get real about something important: in the investing world, there’s almost always a trade-off between risk and reward. Generally speaking:

Lower risk = Lower potential returns
Higher risk = Higher potential returns

“Do your homework,” says Richard Carter, VP of fixed income products at Fidelity Investments. “Diversifying your investments can help manage risk, even in what might be thought of as low-risk investments.”

When considering “risk-free” investments, we’re typically looking at two main scenarios:

No risk – You’ll never lose a cent of your principal
Some risk – You may lose money, but you often have a chance to make more than in a no-risk scenario

Here’s the catch though – even with “no risk” investments, inflation can erode the purchasing power of your money over time. This is why truly risk-averse investments are better for short-term goals or emergency funds, not necessarily long-term wealth building.

10 Best Low-Risk Investment Options in 2025

1. High-Yield Savings Accounts

Risk Level: Extremely Low

High-yield savings accounts are about as safe as investments get. While not technically an “investment,” these accounts offer modest returns on your money with essentially zero risk to principal.

Why consider it:

FDIC-insured up to $250,000 per account type per bank
Easy access to your funds
No risk of losing your principal
Currently offering competitive rates in 2025

Drawbacks:

Returns typically won’t beat inflation
Interest rates can change (variable rates)

To maximize your returns, shop around online for the best rates, as they can vary significantly between banks.

2. Certificates of Deposit (CDs)

Risk Level: Extremely Low

CDs provide fixed-rate returns on your money over a specific time period. You can get traditional CDs at banks or credit unions, or brokered CDs through investment firms.

Why consider it:

FDIC-insured up to $250,000
Fixed, predictable returns
Various term options (6 months to 5+ years)
Generally higher rates than regular savings accounts

Drawbacks:

Your money is locked up for the CD term
Early withdrawal penalties can eat into your principal
If interest rates rise, you’re stuck at the lower rate

Pro tip: Consider a CD ladder strategy where you stagger CD maturities to give yourself periodic access to funds while maintaining higher interest rates.

3. Money Market Funds

Risk Level: Very Low

Money market funds are mutual funds that invest in short-term, high-quality investments like Treasury bills, commercial paper, and other low-risk assets.

Why consider it:

Highly liquid – you can typically withdraw anytime without penalty
Often pays better rates than standard savings accounts
Diversification across many short-term securities
Regular cash payouts (usually monthly)

Drawbacks:

Not FDIC-insured (though still considered very safe)
Returns may not keep up with inflation
Yields fluctuate with market conditions

Ben Wacek, founder of Guide Financial Planning, notes that “The bank tells you what rate you’ll get, and its goal is that the value per share won’t be less than $1.”

4. Treasury Securities

Risk Level: Very Low

Treasury securities are thought to be some of the safest investments in the world because they are backed by the full faith and credit of the US government. They come in different forms:

Treasury bills (T-bills): Mature in 1 year or less
Treasury notes: Span up to 10 years
Treasury bonds: Typically mature in 20-30 years
TIPS (Treasury Inflation-Protected Securities): Principal adjusts with inflation

Why consider it:

Backed by the US government
Exempt from state and local taxes
Highly liquid (can be bought and sold easily)
TIPS provide inflation protection

Drawbacks:

Lower yields compared to corporate bonds
Interest rate risk if you sell before maturity
Long-term Treasuries are more sensitive to interest rate changes

You can purchase Treasury securities through banks, brokerages, or directly via the government’s TreasuryDirect program.

5. Money Market Accounts

Risk Level: Extremely Low

Money market accounts function similarly to savings accounts but often require higher minimum deposits and may offer higher interest rates.

Why consider it:

FDIC-insured up to $250,000
Higher interest rates than regular savings accounts
Usually comes with debit card and check-writing privileges
Maintains high liquidity

Drawbacks:

May have monthly withdrawal limits
Might require higher minimum balances
Interest rates, while better than regular savings, still may not beat inflation

6. Fixed Annuities

Risk Level: Low

Fixed annuities are contracts with insurance companies that pay a guaranteed rate of return over a specific period. They can provide steady income, especially during retirement.

Why consider it:

Guaranteed income stream
Tax-deferred growth potential
No IRS contribution limits
Can provide lifetime income

Drawbacks:

Less liquid than other options (withdrawal penalties)
Complex contracts that can be difficult to understand
Return may not keep up with inflation
Dependent on the financial strength of the issuing company

Annuities work best for people who are approaching or in retirement, value principal guarantees, and plan to use the assets after age 59½ (withdrawals before this age typically incur a 10% IRS tax penalty).

7. Corporate Bonds

Risk Level: Low to Moderate

Companies issue bonds as a way to raise money. When you buy a corporate bond, you’re essentially lending money to the company in exchange for regular interest payments.

Why consider it:

Higher yields than government bonds
Regular interest payments
Bondholders get paid before stockholders if a company goes bankrupt
Various maturity options

Drawbacks:

Not FDIC-insured
Risk of default (company failing to make payments)
Interest rate risk (bond values fall when rates rise)
Less liquid than some other options

“Bondholders are higher in the pecking order than stockholders, so if the company goes bankrupt, bondholders get their money back before stockholders,” explains Wacek.

8. Dividend-Paying Stocks

Risk Level: Moderate

While stocks are generally riskier than bonds, dividend-paying stocks from stable, established companies can provide a nice balance of income and growth potential.

Why consider it:

Regular income from dividends
Potential for capital appreciation
Historically outperform non-dividend stocks with less volatility
Some companies have long histories of dividend increases

Drawbacks:

Stock prices fluctuate, sometimes significantly
Companies can cut or eliminate dividends
More volatile than bonds and cash equivalents
No guarantee of principal

“I wouldn’t say a dividend-paying stock is a low-risk investment because there were dividend-paying stocks that lost 20 percent or 30 percent in 2008,” cautions Wacek. “But in general, it’s lower risk than a growth stock.”

9. Preferred Stocks

Risk Level: Moderate

Preferred stocks are a hybrid between stocks and bonds, offering higher dividends than common stocks but with less price appreciation potential.

Why consider it:

Higher dividend yields than common stocks
Dividends must be paid before common stockholders receive theirs
Less volatile than common stocks
May offer tax advantages

Drawbacks:

Less growth potential than common stocks
Interest rate sensitive (values fall when rates rise)
Companies can suspend dividends in some circumstances
Less liquid than common stocks

10. Cash Management Accounts

Risk Level: Very Low

Cash management accounts are typically offered by brokerages and combine features of checking, savings, and investment accounts.

Why consider it:

Competitive interest rates
Easy access to your money
Often includes check writing, debit cards, and bill pay
May automatically sweep unused cash into higher-yielding investments

Drawbacks:

Interest rates vary
May not be FDIC-insured (though usually protected in other ways)
May have account minimums or fees

Tips for Building a Low-Risk Investment Strategy

Diversify across different low-risk investments – Don’t put all your eggs in one basket, even if they’re all “safe” baskets.
Consider your time horizon – The longer your investment timeline, the more risk you can typically afford to take.
Remember inflation risk – Super-safe investments might not keep pace with inflation, meaning your purchasing power could decline over time.
Match investments to goals – Use very low-risk options for short-term needs and slightly higher-risk options for longer-term goals.
Ladder your CDs or bonds – This strategy gives you periodic access to your money while maintaining higher rates.

My Final Thoughts

Look, I get it – nobody wants to lose money. But the harsh reality is that there’s no such thing as a completely risk-free investment that also offers decent returns. Even stuffing cash under your mattress comes with inflation risk and the risk of theft!

The best approach is to think about your specific goals, time horizon, and risk tolerance. For money you’ll need soon or can’t afford to lose, stick with the safest options like high-yield savings accounts, money market funds, or short-term CDs.

For money you won’t need for many years, consider taking on a bit more risk with a diversified portfolio that includes some dividend stocks or corporate bonds alongside safer investments.

Remember, the biggest risk sometimes isn’t losing money in the short term—it’s not having enough growth to meet your long-term goals. A good financial advisor can help you develop a personalized strategy that balances safety and growth based on your unique situation.

What’s your favorite low-risk investment strategy? I’d love to hear about it in the comments below!

where can i invest my money without risk

How We Make Money

The offers that appear on this site are from companies that compensate us. This compensation may impact how and where products appear on this site, including, for example, the order in which they may appear within the listing categories, except where prohibited by law for our mortgage, home equity and other home lending products. But this compensation does not influence the information we publish, or the reviews that you see on this site. We do not include the universe of companies or financial offers that may be available to you.

All reviews are prepared by our staff. Opinions expressed are solely those of the reviewer and have not been reviewed or approved by any advertiser. As of the date of publication, the review’s information is correct, including any rates, terms, and fees that come with financial products.

where can i invest my money without risk

• Investing
• Wealth management

Former Bankrate principal writer and editor James F. Royal, Ph.D., covers investing and wealth management. His work has been cited by CNBC, the Washington Post, The New York Times and more.

where can i invest my money without risk

• CERTIFIED FINANCIAL PLANNER™

Ribbon Icon

• Investing
• Real estate

Andrea Coombes, a Bankrate editor, translates complex personal finance topics into understandable language that helps people live their best financial lives. She’s a CERTIFIED FINANCIAL PLANNER™ and over the past 25 years has worked as a financial coach, personal finance writer and editor and volunteer tax preparer. Her work has been published in The Wall Street Journal, USA Today, MarketWatch and many newspapers nationwide. Shes been interviewed on local and national TV and radio, including NPRs All Things Considered, CBS News, Nasdaq and Marketplace.

where can i invest my money without risk

At Bankrate, we take the accuracy of our content seriously.

“Expert verified” means that our Financial Review Board thoroughly evaluated the article for accuracy and clarity. The Review Board is made up of financial experts whose job it is to make sure that all of our content is fair and unbiased.

Their reviews hold us accountable for publishing high-quality and trustworthy content.

Founded in 1976, Bankrate has a long track record of helping people make smart financial choices. We’ve kept this reputation for more than 40 years by making it easier for people to make financial decisions and giving them confidence in what to do next.

Bankrate follows a strict editorial policy, so you can trust that we’re putting your interests first. All of our content is authored by highly qualified professionals and edited by subject matter experts, who ensure everything we publish is objective, accurate and trustworthy.

Our investing reporters and editors focus on the points consumers care about most — how to get started, the best brokers, types of investment accounts, how to choose investments and more — so you can feel confident when investing your money.

We value your trust. Our mission is to provide readers with accurate and unbiased information, and we have editorial standards in place to ensure that happens. Our editors and reporters thoroughly fact-check editorial content to ensure the information you’re reading is accurate. We maintain a firewall between our advertisers and our editorial team. Our editorial team does not receive direct compensation from our advertisers.

Treasurys and TIPS

The U.S. Treasury issues Treasury bills, Treasury notes, Treasury bonds and Treasury inflation-protected securities, or TIPS:

Treasury bills mature in one year or sooner.
Treasury notes stretch out up to 10 years.
Treasury bonds mature in up to 30 years.
It depends on the direction of inflation whether the principal value of TIPS goes up or down.

Why invest: All of these are highly liquid securities that can be bought and sold either directly or through mutual funds.

Risk: If you keep Treasurys until they mature, you generally won’t lose any money, unless you buy a negative-yielding bond. If you sell them sooner than maturity, you could lose some of your principal, since the value will fluctuate as interest rates rise and fall. Rising interest rates make the value of existing bonds fall, and vice versa. Shorter-term Treasurys are a better bet if you think rates will rise in the near term.

Companies also issue bonds, which can come in relatively low-risk varieties (issued by large profitable companies) as well as very risky ones. The riskiest are known as high-yield bonds or junk bonds.

“There are high-yield corporate bonds that are low rate, low quality,” says Cheryl Krueger, an investment advisor representative at CGN Advisors in the Chicago area. “I consider those more risky because you have not just the interest rate risk, but the default risk as well.”

Interest-rate risk: When interest rates change, the market value of a bond can go up and down. When rates drop, bond prices go up, and when rates rise, bond prices go down.
Default risk: The company might not keep its word and pay the interest and principal, which could mean you lose all of your money on the investment.

Why invest: To mitigate interest-rate risk, investors can select bonds that mature in the next few years. Longer-term bonds are more sensitive to changes in interest rates. To lower default risk, investors can select high-quality bonds from large, reputable companies, or buy funds that invest in a diversified portfolio of these bonds.

Risk: Bonds are generally thought to be lower risk than stocks, though neither asset class is risk-free.

“Bondholders are higher in the pecking order than stockholders, so if the company goes bankrupt, bondholders get their money back before stockholders,” Wacek says.

Stocks aren’t as safe as cash, savings accounts or government debt, but they’re generally less risky than high-fliers like options or futures. Dividend stocks are considered safer than high-growth stocks, because they pay cash dividends, helping to limit their volatility but not eliminating it. So dividend stocks will fluctuate with the market but may not fall as far when the market is depressed.

Why invest: Stocks that pay dividends are generally perceived as less risky than those that don’t.

“I wouldn’t say a dividend-paying stock is a low-risk investment because there were dividend-paying stocks that lost 20 percent or 30 percent in 2008,” Wacek says. “But in general, it’s lower risk than a growth stock.”

That’s because dividend-paying companies tend to be more stable and mature, and they offer the dividend, as well as the possibility of stock-price appreciation.

“You’re not depending on only the value of that stock, which can fluctuate, but you’re getting paid a regular income from that stock, too,” Wacek says.

Risk: One risk for dividend stocks is if the company runs into tough times and declares a loss, forcing it to trim or eliminate its dividend entirely, which will hurt the stock price. Get matched:

Preferred stocks are more like lower-grade bonds than common stocks. Still, their values may fluctuate substantially if the market falls or if interest rates rise.

Why invest: Like a bond, preferred stock makes a regular cash payout. But, unusually, companies that issue preferred stock may be able to suspend the dividend in some circumstances, though often the company has to make up any missed payments. And the company has to pay dividends on preferred stock before dividends can be paid to common stockholders.

Risk: Preferred stock is like a riskier version of a bond, but is generally safer than a stock. They are often referred to as hybrid securities because holders of preferred stock get paid out after bondholders but before stockholders. Preferred stocks typically trade on a stock exchange like other stocks and need to be analyzed carefully before purchasing.

The Best Short-Term Investments For 2025 (Where To Park Cash)

FAQ

What’s the safest place to invest your money?

Here are the best low-risk investments in 2025:Short-term certificates of deposit. Cash management accounts. Treasurys and TIPS. Corporate bonds. Dividend-paying stocks. Preferred stocks. Money market accounts. Fixed annuities.

How to turn $1000 into $5000 in a month?

7 Strategies for Investing $1,000 and Making $5000Stock Market Trading. Cryptocurrency Investments. Starting an Online Business. Affiliate Marketing. Offering a Digital Service. Selling Stock Photos and Videos. Launching an Online Course. Evaluate Your Initial Investment.

How to turn $10,000 into $100,000 fast?

Turning $10k into $100k “fast” is very difficult and often requires high risk; there is no guaranteed method. Options include high-risk investments like cryptocurrency, or a combination of a higher-risk, high-reward approach with a lower-risk strategy.

What is the best investment with no risk?

7 low-risk investments to considerMoney market & high-yield savings accounts. Certificates of deposit. U. S. Treasury securities. Money market mutual funds. Short-term bond funds. Fixed annuities. Dividend-paying blue chip stocks.

Understanding the Risk-Reward Trade-Off