9 Best Places To Move Your Money Today

If you’re looking for the safest place to keep your money, look no further than a savings account . Your money will be insured by the FDIC, and you’ll have access to it at any time via an online transfer or a debit/ATM card, depending on the policies of your bank. But beyond savings accounts, there are many places that you can keep your money safe and still earn at least some type of return on it.

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Here are nine of the best places to keep your money relatively safe and let it grow .

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High-Yield Savings Account

The first place you may want to move your money into today is a high-yield savings account to maximize your returns if you already have your funds in a bank account.

According to the FDIC, the current APY for a standard savings account is 0.46%, which isn’t substantial by any means. Based on research from CNN , you can find high-yield savings accounts that pay up to 5.25% on your money.

Since your funds are secure in this account, you don’t have to worry about risking your savings to earn higher returns.

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U.S. Government Securities

U.S. government securities are backed by the “full faith and credit of the United States government.” Essentially, this means that the government will never default on interest or principal payments of these securities.

As the government has cash reserves, taxing authority and the ability to continually issue new debt to pay off old debt, U.S. government securities are considered the safest in the world.

As an added benefit, U.S. Treasury securities are exempt from state and local taxes.

Insured Municipal Bonds

Municipal bonds are issued by cities, states and localities, typically to raise money for public works like infrastructure or schools. Like corporate bonds, most municipal bonds are assigned ratings by third-party, independent agencies.

But unlike corporate bonds, many municipal bonds are also insured. This means that in the typically unlikely event that a municipal bond were to default, an independent insurance agency would pay off the bond and make investors whole. This puts insured municipal bonds just a step below U.S. government securities in terms of safety.

Certificates of Deposit

Certificates of deposit, or CDs, are another type of safe investment favored by conservative investors. They are issued by banks and generally come with fixed interest rates and maturity dates, although in some cases those may be flexible. CDs carry the same FDIC insurance as savings accounts.

These options often pay interest rates slightly above savings rates, but they come with the caveat that if you withdraw your money before they mature, you may get hit with an early withdrawal penalty. These investment vehicles are ideal for the funds that you don’t require access to in the short-term.

Money Market Account

Money market accounts aren’t quite as common as they used to be, but many banks still offer them.

One of the main appeals of a money market account is that it’s something of a hybrid, combining the best features of a savings account and a checking account. Most money market accounts pay yields that equal or exceed that of a savings account, but they also offer check writing capabilities.

On top of that, money market accounts are also FDIC-insured, the same as savings accounts and CDs.

Dividend Aristocrats

If you’re willing to take the risk of owning individual stocks, starting with dividend aristocrats is a good option.

Dividend aristocrats are companies that have not only paid but also raised their dividends for at least 25 consecutive years. This is only possible if a company has a relatively mature business with a consistent cash flow, meaning dividend aristocrats generally represent the most famous companies in the world.

Although all stocks can be volatile, dividend aristocrats are generally more stable than the broader market, as customers tend to buy their well-known, name-brand products during any economic environment.

The income component of their return — which by definition rises every year — provides a cushion for investors looking for a safe harbor investment.

Index Funds

If you’re looking to invest your money in hopes of seeing some growth, you’ll want to look into index funds.

Based on data compiled by Forbes , those who invested in an index fund that mirrored the S&P 500 have earned around 10% annually over the long term.

While the stock market has been volatile over the last few years, the S&P 500 generated a return of 24.2%. The goal is to find an index fund with relatively low fees so you don’t have to stress about market fluctuations.

While index funds aren’t as liquid as a savings account, you can potentially earn more on your money if you want to maximize your returns. However, if you need access to your money in the short term, you may want to think twice about this investment vehicle.

Your Workplace Retirement Plan

If you’re looking for a place to stash your money for the long run, one of your very best options is your workplace retirement plan.

When you contribute to a retirement plan like a 401(k), not only do you get to contribute pre-tax money, your assets grow tax-deferred until you withdraw them. And with a 10% early withdrawal penalty applying until you reach age 59 ½, you’ll be more inclined to keep your money invested, which is one of the keys to long-term investment success.

In most cases, your employer will match a portion of your contributions, which essentially amounts to free money for your retirement.

Within the confines of a 401(k) plan, you can usually choose conservative investment options like short-term government bonds, if you would like. However, the best use of a 401(k) is generally for long-term growth, so you should speak with your financial advisor to make sure you are maximizing your retirement investments.

Real Estate

Real estate is one of the most illiquid of investments, and that’s important to understand before you stash your money there.

Selling a property can take months or even years, so you should never invest the money you need in real estate in the short term.

However, unlike many other investments, real estate is a tangible asset. Unlike stocks or even government bonds, real estate is something you can touch and see. Combined with people’s inherent need to have somewhere to live, real estate — when located in an attractive area — can offer good long-term value.

Here are a two ways that you can invest in real estate if you’re looking for better returns:

• Purchase a property to list on a short-term rental platform. Buying a home in the right location can help you make decent money from Airbnb and other platforms. It’s crucial that you reverse engineer the process to estimate what the potential earnings could be.
• Become a live-in landlord. You could purchase a property and then live in one of the units while you list the other rooms to help cover your mortgage payments.

It’s important to point out that real estate is riskier than many other options on this list due to its illiquidity, the long-term holding periods usually required, and the lack of insurance or guarantees.

The Bottom Line

Investments inherently carry risk, which is a trade-off for the potential reward they offer. But risk is not spread equally across different investments.

Where is the best place to hold money? For those who are particularly risk-averse, investments that have insurance or government guarantees, like CDs, insured municipal bonds, savings accounts, and U.S. Treasuries, are a good bet. But for those willing to trade off some safety in exchange for the potential of higher return, investments like high-dividend stocks, S&P 500 index funds or even real estate may hold more interest.

Before you take the plunge, be sure to consult with a financial advisor to chart out exactly where you stand on the risk-reward spectrum so you can devise an appropriate portfolio strategy.

Martin Dasko contributed to the reporting for this article.

This article originally appeared on GOBankingRates.com : 9 Best Places To Move Your Money Today