Best Low-Risk Investments in the U.S. in 2025: Where to Grow Your Money Safely

Why Low-Risk Investments Matter in 2025

In today’s uncertain economy, many Americans are seeking safe ways to grow their money without the volatility of high-risk investments. With ongoing inflation, interest rate fluctuations, and a still-recovering job market, low-risk investments in 2025 are more attractive than ever.

These types of investments offer stability, predictable returns, and peace of mind, especially for retirees, new investors, and anyone looking to protect their savings from market downturns.

High-Yield Savings Accounts: Safe and Accessible

High-yield savings accounts are a top low-risk option in 2025, especially with interest rates now hovering between 4% to 5% APY at many online banks.

Benefits:

• FDIC insured (up to $250,000)
• No market risk
• Easy access to funds

Best Platforms in 2025:

• Ally Bank
• Discover Online Savings
• Marcus by Goldman Sachs

These accounts are great for emergency funds or short-term savings goals.

Certificates of Deposit (CDs): Fixed Returns for Committed Savers

CDs continue to be a reliable choice in 2025 for conservative investors who don’t need immediate access to their money.

How they work:

• You lock in a sum of money for a set term (6 months, 1 year, 5 years).
• In return, you get a guaranteed interest rate.

Why they’re low risk:

• FDIC insured
• Not tied to the stock market
• Interest rates now range between 4.5% to 5.2%

Pro tip: Ladder your CDs to access portions of your money at regular intervals while still benefiting from long-term rates.

U.S. Treasury Securities: Government-Backed Safety

Treasury securities are some of the safest investments in the world because they’re backed by the full faith and credit of the U.S. government.

Options include:

• Treasury Bills (T-Bills): Short-term (mature in under 1 year)
• Treasury Notes (T-Notes): Medium-term (2 to 10 years)
• Treasury Bonds: Long-term (20 to 30 years)
• Series I Savings Bonds: Inflation-protected, great for 2025

Current Yields (2025):

• I Bonds are offering around 4.3%, adjusted for inflation.

Buy them directly through TreasuryDirect.gov with no fees.

Money Market Accounts and Funds

Money market accounts and money market mutual funds are popular for combining security with slightly higher returns than traditional savings accounts.

Key differences:

• Accounts are FDIC-insured and offered by banks.
• Funds are not FDIC-insured but are typically invested in ultra-safe short-term securities.

Why choose them:

• Higher liquidity than CDs
• Low risk and low volatility
• Good for parking large cash balances temporarily

Look for accounts with low fees and minimum deposit requirements.

Diversified ETFs Focused on Stability

Not all ETFs are high-risk. In fact, there are several low-volatility or dividend-focused ETFs that offer better returns than savings accounts, with moderate risk and diversification.

Recommended ETFs (2025):

• Vanguard Dividend Appreciation ETF (VIG)
• iShares MSCI USA Min Vol Factor ETF (USMV)
• Schwab U.S. Dividend Equity ETF (SCHD)

Why they work:

• Spread across many stable companies
• Less exposure to market swings
• Long-term performance with steady growth

Always remember that ETFs are not guaranteed and can still fluctuate with the market, but these options are considered safer than individual stocks.

Final Thoughts: Safety First, Growth Second

In 2025, you don’t have to take huge risks to grow your money. Whether you choose high-yield savings, Treasury bonds, or low-volatility ETFs, the key is to match your investment with your financial goals and risk tolerance.

Always diversify, and consider consulting a financial advisor to create a personalized low-risk investment strategy. With the right approach, you can protect your capital and still watch it grow steadily—even in an uncertain economy.