Best Ways to Invest Money Right Now
There are a lot of ways to invest money — high-yield savings accounts, CDs, bonds, funds and stocks are all options. The best investment for you depends on your risk tolerance, timeline and other factors. When done responsibly, investing can be a great way to grow your money. It comes with risk — which varies based on the investments you choose — but investing is also the best way to help your money outpace inflation. But what’s the best investment? That answer is unsatisfying: It depends. There are investments accessible to virtually anyone —regardless of age, income, risk tolerance or career. However, these factors may influence which investments are best for you.
5 best investments in 2025
Here are five of the best investments right now, generally ordered from lowest risk to highest. Keep in mind that lower risk typically also means lower returns, while taking more risk is likely to offer you a better return on your investment over the long term.
1. High-yield savings accounts
Even though the Federal Reserve has been cutting interest rates, rates remain relatively high. Online savings accounts and cash management accounts often provide better returns than traditional bank savings or checking accounts. Cash management accounts function as a hybrid between savings and checking accounts. They may offer interest rates similar to savings accounts but are typically provided by brokerage firms and often include features like debit cards or checks.
Best for: High-yield savings accounts are ideal for short-term savings or funds you need occasional access to, such as an emergency fund or vacation savings. Some banks may limit savings account transactions to six per month. Cash management accounts, on the other hand, often provide more flexibility while offering comparable interest rates.
If you’re just starting with saving or investing, a good guideline is to set aside three to six months’ worth of living expenses in an account like this before exploring other investment options.
Where to open a high-yield savings account:
• Savings accounts: Online banks typically offer higher interest rates than traditional banks with physical branches.
• Cash management accounts: These are available through investment companies and robo-advisors, which are automated, low-cost services. Providers like Betterment and SoFi often offer competitive rates for cash management accounts.
» See the highest-yielding savings accounts
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2. Certificates of deposit
A certificate of deposit (CD)
is a federally insured savings account that offers a fixed interest rate for a set period of time. Now may be a good time to lock in that fixed rate, as interest rates are expected to continue to decrease.
Best for: CDs are ideal for money you know you’ll need at a specific date in the future (e.g., a home down payment or a wedding). Common term lengths are one, three, and five years, making them a suitable option for safely growing money for a defined purpose within a set timeframe. However, early withdrawal of funds from a CD often incurs a fee. As a general rule, avoid purchasing a CD with money you may need access to soon.
Where to buy CDs: CDs are offered based on term length, with the best rates generally found at online banks and credit unions.
» See the best CD rates right now
3. Bonds
Bonds offer investors a relatively safe form of fixed income. Lower-risk bonds, such as government or corporate bonds, typically pay lower interest rates than higher-risk bonds.
Government Bonds
A government bond is a loan to a government entity (e.g., federal or municipal) that pays investors interest over a specified period, usually between one and 30 years. These are known as fixed-income securities due to their steady payment stream and are considered virtually risk-free since they are backed by the full faith and credit of the U.S. government.
The downside? In exchange for safety, government bonds tend to offer lower returns compared to other investments. A portfolio consisting solely of bonds could make it harder to achieve long-term financial goals.
Best for: Conservative investors looking for less portfolio volatility. Bonds are popular among those nearing or in retirement, offering stability and a shorter investment horizon to weather market fluctuations.
Where to buy government bonds: Individual bonds or bond funds (which diversify by holding a variety of bonds) can be purchased through a broker, directly from the underwriting investment bank, or from the U.S. government.
» Learn more about how to invest in bonds.
Corporate Bonds
Corporate bonds operate similarly to government bonds but involve lending money to a company rather than a government. These loans are not government-backed, making them riskier. High-yield bonds (or junk bonds) carry even more risk, resembling a risk/return profile closer to stocks.
Best for: Investors seeking fixed-income securities with potentially higher yields than government bonds and willing to accept increased risk. Bonds issued by stable companies tend to have lower yields, while those from higher-risk companies offer higher yields. Investors must decide their preferred risk/return balance.
Where to buy corporate bonds: Corporate bonds or bond funds can be purchased through investment brokers.
» See the best brokers for bonds
4. Investment funds
Money Market Funds
Money market mutual funds are investment products, not to be confused with money market accounts, which are deposit accounts. Investing in a money market fund allows you to buy a collection of high-quality, short-term government, bank, or corporate debt.
Best for: Funds you may need soon and are willing to expose to slight market risk. Many use these funds to hold a portion of their portfolio in a safer investment or as a temporary place for money earmarked for future investment. These funds generally yield returns akin to high-yield savings accounts.
Where to buy money market funds: These funds can be purchased directly from mutual fund providers or banks, but the broadest selection is typically available through online discount brokerages.
» See the best-performing money market funds
Mutual Funds
A mutual fund pools money from investors to buy stocks, bonds, or other assets. These funds offer diversification, helping reduce the impact of any single investment’s losses.
Best for: People saving for long-term goals like retirement. Mutual funds provide exposure to stock market returns without the need to manage individual stocks. Some funds focus on specific niches, such as tech companies or dividend-paying corporations.
Where to buy mutual funds: Mutual funds are available through fund providers or discount brokers. Many providers offer no-transaction-fee mutual funds and tools to help choose the right one. Initial investments typically range from $500 to thousands of dollars, though some waive this with automatic monthly contributions.
Index Funds
Index funds are mutual funds that hold stocks from a specific market index (e.g., S&P 500). They aim to match the index’s performance rather than outperform it, as actively managed funds do.
Best for: Long-term savings goals. Index funds have lower fees and are less volatile than actively managed funds. They are especially suited for young investors with a longer time horizon and tolerance for market fluctuations.
Where to buy index funds: These funds can be purchased through fund providers or online brokers.
Exchange-Traded Funds (ETFs)
ETFs pool investor money to buy a collection of securities and are traded on stock exchanges like individual stocks.
Best for: Investors with a long time horizon who lack the funds to meet mutual fund minimums, as ETFs are typically more affordable.
Where to buy ETFs: ETFs can be purchased through brokerages or as part of portfolios managed by robo-advisors.
» See the best brokers for ETF investing
5. Stocks
Individual Stocks
Stocks represent ownership in a company. They generally offer higher potential returns but come with greater volatility compared to bonds.
Best for: Investors with diversified portfolios who are comfortable with risk. It’s recommended to limit individual stock holdings to 10% or less of your portfolio.
Where to buy stocks: Stocks are easily purchased through online brokers after setting up and funding a brokerage account.
Dividend Stocks
Dividend stocks provide a blend of fixed income and growth. These regular payments from companies offer stability and can appeal to investors at various life stages.
Best for: All investors, from beginners to retirees. Younger investors may prefer companies with a history of increasing dividends, while older investors might prioritize consistent dividend payers for stability.
Where to buy dividend stocks: Dividend stocks can be purchased through online brokers.