As the cost of living increases with each passing day, investing our incomes has become a must. However, one requires that the returns of this hard earned money be substantially good with low chances of possible risk. Although it is true that the expectations of high demands also have high risk in picture…decent returns can be obtained by taking up low-risk investments. But the closer one gets to the time of withdrawal, the tougher it gets to invest in high-risk options.

• Peer-to-Peer Lending:
  P2P lending involves you lending your money to someone instead of buying shares in a company. It’s important that you screen properly and opt best-rated loans.

• High-interest savings account:
  It helps you earn a nominal interest just by keeping the money on deposit and takes absolutely no effort apart from opening the account and depositing the funds.

• Certificate of deposit:
  This can be obtained from your bank, investment broker or credit union and guarantees a particular amount of return on your money deposited for a certain time, irrespective of any change in the interest rates.

• Annuities:
  Annuities are similar to CDs in that there’s a guaranteed return. However, the return can be fixed, variable or dictated partially by stock market behavior.

• Treasury Inflation Protected Securities (TIPS):
  These bonds can either have a fixed interest rate or with government guaranteed inflation protection where the investment value would rise with the inflation rate through the length of the bond.

• Money market funds:
  It’s a mutual fund that keeps the principal of the investment safe. The fund might also generate returns in the form of interests.

• Municipal bonds:
  Funds invested in these bonds avoid income tax, thereby promising a higher return compared to a risky taxable investment.

• US savings bonds:
  This is similar to TIPS except that it is also backed by the federal government.

• Online checking account:
  Similar to high yield saving account with zero/minimal fee to get started

• Bank bonuses