When thinking about Low Risk Investments, investment options that prioritize capital preservation while delivering modest returns. Also known as conservative investments, they suit anyone who wants steady growth without the sleepless nights that come with high‑volatility assets.
One of the most familiar choices is the Savings Account, a deposit product offered by banks that provides easy access and a guaranteed, though low, interest rate. Often the first place people park an emergency fund, a savings account lets you withdraw cash instantly, which is why many of our readers start here before exploring anything else.
For those who can lock their money away for a set period, Certificates of Deposit (CDs), fixed‑term deposits that usually beat standard savings rates in exchange for limited liquidity become attractive. In 2025 you’ll still find a handful of banks offering double‑digit APYs on short‑term CDs, but the fine print often includes early‑withdrawal penalties that can erase the extra yield.
Government bonds sit a step up the ladder. They are issued by national treasuries, carry a sovereign credit rating, and typically pay a fixed coupon every six months. Because the government backs the repayment, bonds are considered one of the safest assets after cash. The trade‑off is that yields follow the broader interest‑rate environment, so when rates dip, bond returns do too.
Money‑market funds blend the liquidity of a savings account with the slightly higher returns of short‑term debt instruments. Managed by professional fund managers, they invest in commercial paper, treasury bills, and other low‑risk securities. The net asset value stays close to $1 per share, which means you rarely see big swings, but you do get a bit more interest than a plain‑vanilla account.
Understanding how each of these pieces fits into your overall financial picture matters. If you’re building a budget using the 50/30/20 rule, the “20%” slice for savings and debt repayment can be split between a high‑interest savings account for your emergency stash and a CD ladder for medium‑term goals like a car purchase. That approach mirrors the advice in our "Best Alternatives to a Savings Account in 2025" guide, where we compare yields, risk, and liquidity across the options.
Current market shifts also influence decisions. The recent rise in CD rates—highlighted in our "Can You Get 7% on a CD in 2025?" article—means many investors are re‑evaluating whether to keep cash in a low‑yield account or move it into a term deposit. At the same time, government bond yields have nudged up after the latest Bank of England policy meeting, making them a viable complement to a CD ladder for those who crave a bit of diversification without added risk.
When it comes to low risk investments, the key is matching the product’s liquidity, return, and safety profile to your personal timeline and risk tolerance. Below you’ll find a curated collection of articles that break down each option, show you how to calculate real‑world returns, and give step‑by‑step guidance on getting started. Dive in to find the strategy that feels right for your money and your peace of mind.
Learn how Australian savers can combine high‑yield accounts, term deposits, credit unions, P2P lending and low‑cost funds to target a 10% annual return while keeping risk low.