5 Best Low-Risk Investments Right Now (4%+ Returns)

5 Best Low-Risk Investments Right Now (Up to 4% Returns)

Investors flock to safe investments during periods of market volatility. Earning higher returns from these investments is possible if you know where to look.

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Edited by other Updated Apr 9, 2026 NerdWallet is committed to editorial integrity.

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How to Start Investing in Stocks What Is the Average Stock Market Return? How to Make Money in Stocks in 2026: 6 Easy Steps How to sell stock: A 3-step guide for beginners Nerdy takeaways When markets turn volatile and fears of a recession mount, safe, low-risk investments get a moment in the sun. Federal Deposit Insurance Corporation (FDIC)-insured accounts and other safer investments can help cautious investors combat inflation while securing their savings.

Are there safe investments with high returns?

While low risk generally does mean sacrificing high returns, safer investment options like online savings accounts and certificates of deposit are still paying more than they have in recent history, despite a series of Federal Reserve interest rate cuts that began in 2024. The below accounts and investments often make the most sense when investing for the short term — meaning you may need to withdraw the money sometime soon, or you just can't stomach the stock market's wild ride.

Safe, FDIC-insured and government-backed options

The investments below all come with insurance, which make their risk practically nonexistent. Traditionally, they are considered very safe investments. However, their yields are also lower, which is a typical trade-off when you're investing for safety.

1. Money market accounts

What are they? These are savings accounts that allow you to spend directly from the account. Savings accounts, by comparison, limit the number of transactions per month. What are they? Current returns: 3.5% to 4%. See our best money market accounts page for up-to-date rates. Current returns: What's safe about them? These FDIC-backed accounts guarantee deposits of up to $250,000 per institution per investor. What's safe about them? What's safe about them? Where can I get one? Most banks offer money market accounts, but the national average APY per the FDIC is currently just 0.65%. (This rate is variable and may change). However, many online banks offer substantially higher rates. Where can I get one? 0.65%

2. Online high-yield savings accounts

What are they? These are fundamentally similar to typical savings accounts, but by operating strictly online, these banks don’t have to spend money on brick-and-mortar operations. In turn, they pass these savings on to you in the form of higher APYs. What are they? Current returns: Up to 4.1%. See NerdWallet’s list of high-yield online savings accounts for up-to-date rates. Current returns: What's safe about them? Though they don’t come from a traditional brick-and-mortar bank, these accounts are still FDIC-insured. What's safe about them? Where can I get one? Everything is done online, from choosing a bank to enrolling and transferring money into it. Where can I get one?

3. Cash management accounts

What are they? The nature of these accounts varies slightly between providers today, but most of these products behave similarly to an online savings account. These have become more popular among online brokerages and robo-advisors lately because they make it easy for customers to move money seamlessly to and from an investing account. What are they? Current returns: Up to 4%. See NerdWallet’s best cash management accounts for current APYs. Current returns: What's safe about them? Cash management accounts are offered by non-bank financial institutions, yet the FDIC still backs them through partnerships with banks. What's safe about them? Where can I get one? At an online brokerage or robo-advisor. Where can I get one?

4. Certificates of deposit (CDs)

What are they? Banks offer CDs because it gives them a set amount of cash upfront for a set period, which they can use to lend to other customers or invest. They often offer higher rates than savings accounts to incentivize you to start a CD. The downside? If you need to access the cash in your CD, you may be hit with an early withdrawal penalty, often consisting of a few months’ interest. What are they? Current returns: Up to 4.15%, depending on the term. See our list of the best CD rates. Current returns: Current returns: What's safe about them? With these, you put your money into an FDIC-insured account for a specified period, during which you’ll receive a guaranteed interest rate. What's safe about them? Where can I get one? Most banks offer CDs. Most banks offer CDs. However, for the same reasons noted above, yields tend to be much higher through online banks. Where can I get one?

5. Treasury notes, bills and bonds, or Treasury accounts

What are they? Treasurys are a loan to the government, which pays you interest on that loan at regular intervals. If you hold it for the entire period, you’ll also get back the bond’s face value. What are they? The most significant differences between Treasury bills, notes, and bonds are the length of time the government holds your money and your interest rate. Bills pay back in under a year. Notes pay out in 2, 3, 5, 7 or 10 years. Bonds mature in 20 or 30 years. Current returns: Vary by type of Treasury. Current returns: Current returns: What's safe about them? Treasury securities (bills, notes and bonds) are backed by the “full faith and credit of the U.S. Government.” You’ll get any regular interest payments promised to you so long as you own the bond, plus the face value of the bond if you hold it until maturity. What's safe about them? Alternatively, you can sell your bond if you wish, though you’ll lose out on the interest payments you would have had until it matured. Where can I get one? From TreasuryDirect.gov or through an online broker that offers access to Treasuries. Treasury accounts are increasingly popular — these purchase Treasurys for you and act similar to a savings account. Public, a broker we review, offers one, as does NerdWallet through NerdWallet+. Where can I get one?

Next steps

Use our investment calculator to project how your money might grow. Learn how to open a brokerage account to start investing. View our picks for the best brokerage accounts. Explore more on About the author Davis Chris Davis is a Managing Editor on the Investing team. He has passed the Series 65 (Uniform Investment Adviser Law Exam) and covered the stock market, investing strategies, investment accounts and cryptocurrency. His work has appeared in The Associated Press, The Washington Post, MSN, Yahoo Finance, MarketWatch, Newsday and TheStreet. Published in What Is a Brokerage Account? Where and How to Open One By Arielle O'Shea, Pamela de la Fuente Best Brokerage Accounts for Online Investing and Stock Trading in 2026 By Chris Davis Best Investments: Where to Invest in 2026 By Chris Davis, Alieza Durana The Best-Performing Stocks in 2026 (By One-Year Returns) By Arielle O'Shea, Chris Davis Investing in Dividend Stocks: Guide, Calculator and Top 7 Yields for July 2026 By Chris Davis, Sam Taube