Is bank CDs the best investment?

Question

My friends recommended the bank CDs for a low risk and safe investment. Is there any other options or investments that may be a higher returns than bank CDs(3-4%/1yr), but still low risk?

Answer 1

All answers above are correct, and so are your friends.  Always remember:  Rate of return is inversely proportional to risk.   Best return, go to the roulette table.  Put your savings on Red, and your rate of return is double.  BUT your risk is high.  Put your money in CD's or annuities, and you might get 3% but your investment is safe.  If you are going long term, go mutual funds, and your rate of return will probably be ~10%

Answer 2

If you want low risk, cds are one of the best ways to go but you won't make much off of them. If your young why not try a higher risk investment so you can get a higher return.

Answer 3

Bank CDs are great if you are risk-averse and don't want to expose your money to the volatility of the stock markets. Try to get in some mutual funds as well to get higher returns.

Answer 4

not really and bank CD's won;t even keep you EVEN with inflation right now - nothing that guarantees no risk of loss is paying anymore than CD's