5 Types Of High Interest Investments To Maximize Returns & Minimize Risk

All investors want to make as much money as possible. But, many investors also do not want to sacrifice security for the sake of earning big returns on high risk investments. Thankfully, there are still many types of high interest investments that can provide dividends to low-risk investors. If you like to keep your investment risk to a minimum, and avoid having to learn Forex trading basics, keep reading. Below, you will learn about the best low risk, high interest investments for you to consider incorporating into your portfolio.

Peer Lending Investments

Peer to peer lending offers some of the best low risk investment opportunities for investors to capitalize on. Peer to peer lending investments allow you to loan money to loan-seekers online. Then, you earn dividends as the loan recipients pay back their outstanding debts. These types of investments allow investors to limit their risk by lending small amounts to a bunch of different borrowers. Then, your investment portfolio can benefit from the monthly dividends disbursed to your account once borrowers start paying off their loan interest. If you want to find the best high interest investments with low risk, becoming a peer to peer lender is one of the best solutions.

Preferred Stock Investments

Preferred stocks offer great low-risk, high return investment opportunities to investors like you. A preferred stock is any stock that has a higher claim on company earnings and assets than traditional stock holdings. These investment products are like a cross between a regular stock share and a bond. They afford you the security of a bond, but with the added benefit of higher returns from by being a stockholder. Investing in preferred stock is a great way to earn bigger, high interest returns from your investments without sacrificing the stability of your portfolio assets.

Certificates Of Deposit

Certificates of deposit, more commonly known as CDs, provide investors one of the best low risk investments to consider diversifying their portfolio. Bank CDs are similar to high interest savings accounts. When you invest in a CD, you agree to not touch that money for the a set length of time. For that exchange, you benefit from a higher interest rate for your savings over that course of time. Deposit brokers, like Lee Jackson, will often provide even higher interest CDs than traditional banks. That is important to remember if you decide to invest in a certificate of deposit. Even through a bank, CDs are one of the best low risk investments to earn high returns, guaranteed.

Fixed Annuities

Invest in fixed annuities to earn higher returns from companies that offer term insurance plans. Fixed annuities are one of the few low-risk high interest investments that are perfect for conservative investors who are looking for higher returns. With fixed annuity investments, investors can benefit from returns that are, on average, 1% higher than certificates of deposit or treasury securities. In addition, they also experience very limited risk. Liquidity risk is the only thing investors have to worry about if they choose to withdraw funds earlier and suffer from withdrawal penalties. Other than that, fixed annuities investing is one of the best ways to invest in low risk, high interest investment products.

Treasury Inflation Protected Securities

Treasure inflation protected securities, or TIPS, are bond investments offered by the United States Treasury. These are another one of the best low risk investments that allow you to benefit from high interest rates. TIPS offer investors fixed interest growth rates and built-in inflation protection for your investments. When the inflation rate rises, so too will your TIPS investment value. You can invest in TIPS by buying them individually. Or, you can invest in a mutual fund that invests in TIPS. TIPS investments are one of the best ways to protect your investments from inflation. They are also one of the best high interest investment opportunities for you to use to diversify your portfolio and improve portfolio performance.

Investing requires you to tolerate risk. But, you do not have to solely invest in high risk investments to earn high returns. Instead, there are some low risk investments that can offer you high returns. These high interest investments detailed above are some of the best low risk high reward investments available. Invest in one or all of the investment products detailed above. You are sure to be pleased with the impact these investments have on your overall portfolio worth.

Leave a Reply

Your email address will not be published. Required fields are marked *


This site uses Akismet to reduce spam. Learn how your comment data is processed.

Scroll To Top