What are the best high yield investments?
We’ll talk about what are the best high yield investments that don’t have high risks. In a tough economy like this, we all want to know how to make some extra $, right? This means these are the ways to make the highest return while being on the relatively low risk side. A lot of the times, the highest return means highest risk; however, there are certain low risk investments that provide a relatively high yield.
This post is about the best high yield investments.
Let’s dive into the top 5 best high yield investments:
1. High Yield Savings Account
By far, one of the best AND most liquid investments is a high yield savings account. If you don’t have one, what are you doing?! Not the most glamorous, but they are amongst my favorite investments because some banks are offering anywhere between 3-5% just for you to park your cash with them! They’re easy to transfer between accounts, so if you ever need the money, you can always transfer it over to your checking account. Where else could you make 3-5%, while being that liquid?
2. I-Bonds
So, you know how the high yield savings account is already quite low risk? I-Bonds are even lower risk. Also known as Series I bonds, these are offered by the U.S. government, that are inflation adjusted. Every 6 months, the government takes into account inflation and offers I-bonds as a way of protecting against inflation. For example, in the past few years, we’ve seen the highest inflation, so the rate offered was up to 9.62%. Where else could you get a virtually no risk investment for that high of a return?
3. Certificates of Deposits (CDs)
Apart from high yield savings accounts, these are also quite safe while being (mostly) liquid. You’re able to choose the length at which your money is invested. Typically, the longer the term, the higher the rate. However, CDs typically offer a higher rate than traditional savings accounts.
4. Dividend Stocks
Some stocks pay higher than average dividends! Look out for companies that have high AND frequent dividends. This is a great way to build cash flow and passive income.
5. Real Estate Investment Trusts (REITs)
Want to invest in real estate without the hassle of managing a physical property? REITs could be your answer! REITs are required to pay out majority of their income to their investors through dividends. Similar to investing in dividend stocks, REITs could be a great way to add to your passive income.
To reiterate, the top 5 best high yield investments are:
- High Yield Savings Account
- I-Bonds
- Certificates of Deposits (CDs)
- Dividend Stocks
- Real Estate Investment Trusts (REITs)
