High yield investments offer higher interest rates than the norm. Of course, depending on the economy, the numbers will be different. In a strong economy, 5% seems pretty low whereas in a very bad economy, it’s a great rate. On top of that, risk plays a role in how those rates come across. The more risk there is, the mess attractive any high yield investments work.

Low Risk High Yield Investments

The lowest risk investments you can find are government securities such as bonds and government insured savings accounts. There are lots of great high yield savings accounts available online. My favorite is ING Direct. I have been with ING Direct for over 4 years and I’ve been very satisfied with them. They offer a high interest rate, the ability to make multiple accounts, and automatic savings. You can sign up for ING Direct here for free. You can even go one step further and sign up for Electric Orange checking account and earn interest on what you have in your checking account.

You can buy different types of government savings bonds online at treasurydirect.gov. They offer reasonable rates and government backed securities. If you are weary of going paperless, you can still buy I and EE savings bonds at your local bank.

Stocks

If you want to make more from your investments, the stock market will help you along. It is riskier, but it also offers a higher return on average. Of course, this depends largely on what stocks you are investing in. Some are extremely risky while others are more stable but probably won’t earn you as much.

If you want to take on more risk, make sure you’re prepared for it. If you are investing retirement funds and you’re close to retirement or you’ll need the money soon, stay away from risky investments. You can buy riskier high yield investments when you are younger and won’t need the money for a while, or if it’s all discretionary money.

Mutual Funds

Mutual funds are a great choice because you can easily diversify your portfolio without putting in the extra work to research. You can also invest in a wide variety of investments including stocks, bonds, commodities, futures,currency, etc. Index funds are a great way to build a balanced portfolio.

No matter what type of high yield investments you’re looking for, take your time researching your investments and beware of what risks you take. Also, continue to save money on a regular basis to add to your investments in order to make your net worth grow further.