Planning on investing money in one of the many options available online but don’t know where to start? There are many types of investments that will prove beneficial for your long-term savings plan.

Top investment options

Bank products
When it comes to safe avenues for investing money, banks and credit unions offer a number of investment instruments. These financial institutions also offer services for managing funds efficiently. Checking accounts, savings accounts, etc.

Bonds
A bond is very similar to any loan taken, in exchange for periodical interest payments. In a bond, the principal amount is provided by the investor to a financial institution for a specific return on the investment over a fixed tenure. After the maturity date, the principal amount is also paid back to the investor, making it another safe avenue for investing money.

Stocks
The stock market can be very volatile and unpredictable at times. However, it is also one of the best markets for investing money. Bigger the risk, better will be the return on your investment. However, to invest in the stock market and make profits, a brokerage account has to be opened with any financial institution that provides these services. The type of stock you want to invest in, whether the investment will be short term or long term, are factors to be considered before venturing into the market.

Investment funds
Mutual funds, exchange funds, and close traded funds are some of the common fund options available for investing money. Funds pool money from multiple investors and reinvest in the market. Mutual funds are a relatively safer option compared to directly investing in the stock market since the risk of investment lies with the mutual fund company. The investor will redeem decent returns on his or her investment without having to worry about where the money is being invested.

Annuities
Annuities are simple contracts between the investor and the insurance company, wherein the company makes periodic payments to the investor. The two common types of annuities include immediate annuity where payments start after the investment has been made as opposed to a deferred annuity in which payments start at a future date.

College savings
College funds proves to be the best possible way of investing money for sponsoring future education. Popular plans such as the 529 college savings plans is a smart way of saving money for future purposes. Education has become expensive over the years, and this is especially the case for premium education offered by the top universities in the country. Systematic and periodic contributions to college savings will prove to be a financial boon at a future date.

Retirement
Saving up for your retirement is one of the most important financial decisions one has to take since having a security nest egg is essential which is why investing money in Roth IRA, 401K plans is advisable. The added tax benefits make it a worthwhile investment.

Options contracts, commodity futures, and security futures are some of the other options for investing money.