Are you looking to have your money work for you, instead of working for your money? One of the best ways to make money work for you is through investing.

While investing requires some initial research, once you’ve chosen your investment strategy, you can pretty much just sit back and watch your income grow. But, what investment strategies should you be using?

Check out this guide to learn about the top solid investments that everyone should consider.

  1. High Yield Savings Account 

Setting up a high yield savings account is one of the best ways to invest your money. These accounts offer higher return rates than what you’ll get with a traditional bank.

While a high yield savings account won’t make you rich, it’s a good option for those who are looking for an investment option without any risks. The money you have stashed in this account is FDIC-insured, which means the government will recuperate any losses of up to $250,000.

While a 2% interest rate may not seem like a ton of money, especially when you compare it to the returns you can make through the stock market, it’s a pretty great deal when you consider that there’s no risk level. There are even some brokerage firms that offer a higher rate than 2%.

Additionally, a high yield savings account is a liquid investment. This means that you can access the money in it at any time without being hit with a penalty. While high yield savings accounts can be used for any reason, most people use these accounts for emergency or vacation funds.

Ideally, you want to keep three to six months’ worth of living expenses in this high yield investment account before you allocate money toward other types of investments. We recommend opening your high yield savings account with an online-only brokerage firm or bank, as these institutions have fewer overhead costs and can therefore offer a higher interest rate.

  1. Money Market Account

A money market account is similar to a savings account, but it comes with the option to write. a limited number of checks each month. If you’re looking for a little more flexibility compared to what a traditional savings account offers, a money market account is worth looking into.

If you’re using an account only for monthly deposits and monthly rent checks, a money market account may be ideal. However, keep in mind that with a money market account, you’re limited to six transactions per month. If you exceed this amount, you’ll be fined.

If you keep exceeding the transaction limit, you’ll need to convert your money market account into a checking account. It’s also important to note that a money market account is different from a money market fund.

While money market accounts are bank deposit accounts, money market funds are an investment product. When you invest in this type of mutual fund, you’re buying into a collection of short-term, yet high-quality bank, government, or corporate debt.

If you think you may need money soon and you’re willing to be exposed to a little more market risk, a money market fund is a good investment. You can purchase a money market fund directly from your bank or mutual fund provider.

  1. Certificate of Deposit 

A certificate of deposit, also known as a CD, offers higher returns than most savings accounts. A certificate of deposit is a federally insured savings account that comes with a fixed interest rate for a set period of time.

If you know you’ll need a certain amount of money at a fixed date in the future, (think, down payment for a home or wedding), then a CD account is a worthy investment. Common terms for a CD account are one year, three years, and five years. If you’re looking to save and grow money for a specific purpose within a limited time frame, this is the account for you.

However, it’s important to note that if you want to get your money out of a CD early, you’ll likely need to pay a fee. You can typically find the best CD rates at online banks and credit unions.

  1. Government Bond 

A government bond is another excellent type of investment that’s worth considering. This is a loan that you’re giving to a government body (such as a municipal or federal government) to pay investors interest on the loan over a certain period of time.

Typically, the loan period is anywhere from one to 30 years. Because of the steady payment stream, government bonds are considered a type of fixed-security income. In other words, they’re a risk-free investment that’s backed by the credit of the US government.

The downside to government bonds is that they don’t offer a high return on investment. However, they’re a good option for conservative investors who want less volatility in their investment portfolio.

You can purchase both individual government bonds and bond funds through a broker or an investment bank.

  1. Corporate Bond 

A corporate bond works the same way a government bond does. However, instead of loaning the government money, you’re loaning corporation money. Because these loans aren’t backed by the government, they’re a riskier option.

If you purchase a high-yield bond, also known as a junk bond, then you’re taking on substantially more risk. But, if you’re looking for fixed-income security with a possible higher yield than a government bond, then a corporate bond is a great option.

Are You Ready to Make Some Solid Investments? 

Now that you know about these solid investments, it’s time for you to decide which ones are right for you. The best thing to do is to pick at least a few of these investment strategies so that you have a diversified portfolio.

And, be sure to check back in with our blog for more investment tips and tricks.