When you are considering the best safe investments available today, there are many options from which to choose. The first thing you must understand is there is a wide range of very safe investments that can be made that will produce nice returns throughout the years. Finding the right one that fits your exact needs is the most important factor when considering a sound, safe investment. You must consider your current financial situation and how you want your money to work for you. That is the most important factor; make the money work for you, not against you.

First off, the safest investment around is a standard savings account. When adding money to a savings account. you can expect less than ½ of 1 percent return on your investment per year. The FDIC insures money that is placed in a standard savings account through any bank. The annual return is extremely minimal at best, but as safe as you can get.

Consider investing in a CD ; also known as a Certificate of Deposit. This investment vehicle is available at all major banks that will generate a 1 to 3 percent annual return. CD’s are insured by the FDIC, which provides a nice level of emotional comfort. A CD will have a maturity date that can range anywhere from 6 months to five years, and the interest rate is fixed based on what the bank has available. Also, look into a money market mutual fund if you wish to consider slightly more risk with more favorable returns. Money market mutual funds are also available at the major banks. Money market mutual funds are a safe investment, on average generating 3 to 5 percent per year. The investment is not backed by the FDIC and can fluctuate up and down based on the major indexes. Therefore, the 3 to 5 percent annual return is not guaranteed.

Although the housing industry has taken a huge hit over the past few years, historically real estate is one of the safest investments around today. Now more than ever, if someone has cash on hand to make an offer on a home, banks will sell the home for pennies on the dollar. This means you can purchase a home 50 to 60 times below current market value. Although the housing industry has been in one of the worst cycles in over 60 years, past trends show that it will recover. The levels seen in the early part of the decade may never return, but it will trend back to stable levels and provide substantial returns on a short-term investment. Of course, this contains much more risk than a standard savings account.

No matter what your investment goals are, it is important to remember two fundamental principles: it is your money, make it work for you.