What is dollar-cost averaging?

Dollar-cost averaging isn't an investment, per se, but it's a good strategy to help you make money in 2023. If you own stocks, adding regular amounts every month to your portfolio will allow you to lower the long-term average cost of what you own by buying more shares when prices are low.

What is the safest investment with high returns?

Some of the safest investments that offer high returns are high-yield savings accounts and CD accounts. These can be found at FDIC-insured institutions and typically offer high interest rates.

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The Best Fixed-Income Investments You Can Make

April 21, 2025

5 min Read

Written by Caitlyn Moorhead

Edited by Emily Gadd

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Stocks can help you grow your money. However, the rate of return can depend on a lot of factors out of your control.

Fixed-income investments can offer more steady returns. They are a good choice to round out a stock portfolio or for investors with a lower risk tolerance.

Investment Type	Risk Level	Expected Yield	Ideal For
U.S. Treasuries	Low	Around 4%	Conservative and long-term investors
High-Yield Savings	Low	Over 4% APY	Emergency funds
REITs	Medium	Around 4%	People who want to invest real estate but don’t want to manage property
CDs	Low	Around 4%	Guaranteed rates
Short-Term Bond Funds	Medium	Around 4%	Short-term financial goals
Money Market Funds	Medium	Over 4%	People who want to invest in baskets of assets
Corporate Bonds	Medium	Over 5%	People who want the stability of bonds with higher returns

1. US Treasury Bonds

Risk Level: Low
Expected Yield: Varies, but can be as high at 4%
Ideal For: Long-term investors with low-risk tolerance

As one of the most popular fixed-income investments, U.S. Treasury bonds are a tried and true way to get a return on a safe investment backed by the U.S. government.

They are a long-term investment that typically matures in 20 to 30 years.

2. High-Yield Savings Account

Risk Level: Low
Expected Yield: As high at 4.40%
Ideal For: Emergency funds

High-yield savings accounts offer higher interest rates than typical savings accounts. The interest rates you can earn depend on the rates set by the Federal Reserve sets.

When the Federal Reserve interest rates are high, so are the high-yield savings account rates. One downside of this account is that the bank can lower (or raise) the rate your account earns with little notice. Here are the best high-yield savings account rates on the market.

3. Real Estate Investment Trust

Risk Level: Medium
Expected Yield: Can be as high as 4%
Ideal For: People who want to invest in real estate without owning a property

Real estate investment trusts, or REITs, allow investors access to real estate without having to actually own any. REITs also provide dividends to shareholders. Dividends are typically high and volatility is often less than the stock market overall. Here are the best REITs to invest in.

4. Short-Term Bond Fund

Risk Level: Medium
Expected Yield: Varies, but can be as high as 4%
Ideal For: People who want bonds with shorter terms

Like the name suggests, short-term bond funds are shorter than other types of bonds. They provide an amount of income in exchange for the security of getting your money back at maturity.

These funds come with lower risk but are not entirely risk free — yields can change over time as the securities in the fund are replaced. But this fixed-income investment is a great choice for those interested in a short-term option.

5. Certificates of Deposit

Risk Level: Low
Expected Yield: As high as 4.25%
Ideal For: People who want a guaranteed rate

Certificates of deposit can help you lock in an interest rate for a set period of time. This sets them apart from high-yield savings accounts. Just make sure that you won’t need any of the money you invest in a a CD for a while.

Removing money before the end of the CD’s term can result in costly early withdrawal penalties. Here are the best CD rates on the market.

6. Money Market Funds

Risk Level: Medium
Expected Yield: Over 4%
Ideal For: People who want to invest in diversified assets

As a subclass of mutual funds, money market funds invest in highly liquid fixed-income assets. They are not FDIC-insured but do have higher yields than a CD or savings account. However, be aware that they also have higher expense ratios.

Here are the best money market funds on the market.

7. Corporate Bonds

Risk Level: Low
Expected Yield: Over 5%
Ideal For: People who can take on more risk for the potential of a higher return

Companies issue corporate bonds and they tend to have higher yields than government bonds, but with that comes higher risk. You can purchase corporate bonds through a broker.

Make sure to check any corporate bond rating you are considering to ensure it aligns with your risk tolerance.

The Bottom Line

All investing comes with some risk, even fixed-income investments. Make sure you understand your risk tolerance and never invest money you can’t afford to lose.

A financial advisor can give you advice that’s more tailored to your specific financial situation.

FAQ

Here are the answers to some of the most frequently asked questions regarding the best fixed income investments.

What is dollar-cost averaging?
- Dollar-cost averaging isn't an investment, per se, but it's a good strategy to help you make money in 2023. If you own stocks, adding regular amounts every month to your portfolio will allow you to lower the long-term average cost of what you own by buying more shares when prices are low.
What is the safest investment with high returns?
- Some of the safest investments that offer high returns are high-yield savings accounts and CD accounts. These can be found at FDIC-insured institutions and typically offer high interest rates.

John Csiszar contributed to the reporting for this article.

Our in-house research team and on-site financial experts work together to create content that’s accurate, impartial, and up to date. We fact-check every single statistic, quote and fact using trusted primary resources to make sure the information we provide is correct. You can learn more about GOBankingRates’ processes and standards in our editorial policy.