10 Best Safe Investments With High Returns Plans In December 2022

10 Best Safe Investments With High Returns Plans In December 2022

10 Best Safe Investments With High Returns Plans In December 2022

While you’re building your nest egg, plenty of safe investment opportunities can help you put your money to work toward your financial goals, including retirement and supporting your family in the future.

Here are 10 of the best investments for December 2022, according to experts at Investopedia.

These are considered the safest because of their low risk and high return potential.

1) P2P Loans

P2P loans are personal loans made between individuals rather than between borrowers and financial institutions.

Because there is no intermediary, P2P loans often have lower interest rates than traditional loans from banks or credit unions.

P2P loans are often more flexible in loan terms and repayment schedules.

Pros Explanation

  • P2P loans can be an excellent way for borrowers with good credit to get the money they need at a lower interest rate than you might find elsewhere.
  • For lenders, P2P lending offers the opportunity to earn higher returns than you would get from a traditional savings account or CD.
  • Rates vary significantly depending on the individual lender’s risk tolerance but typically range from 6% to 12%.
  • Lending Club and Prosper offer several investment opportunities, including high-yield fixed-rate loans (for people who want their capital back) and diversified portfolios of multiple loans (for people who want some variety).
  • You can also choose your level of involvement: investors may choose whether they want to lend funds occasionally or invest large sums regularly via systematic investing.

2) Public Bonds

Public bonds are one of the safest investments because the government backs them.

They have a fixed interest rate, so you know exactly how much you’ll earn each year. Plus, they’re straightforward to sell if you need the money before maturity.

There’s also less risk for inflation, which is suitable for people who want to invest for their retirement.

Private Bonds: Private bonds can be riskier than public ones, but they often pay higher rates of return.

These are made available by companies and individuals who need funding to start or grow their business, which isn’t guaranteed, like public bonds.

You should only buy private bonds if you don’t mind taking risks and can afford them-they typically cost more than public ones.

Pros Explanation

  • Public bonds are issued by the government and thus, are backed by the full faith and credit of the United States.
  • They are considered one of the safest investments because it is doubtful that the government will default on its debt obligations.
  • Public bonds typically have a lower interest rate than other types of bonds, such as corporate bonds.
  • The interest payments on public bonds are exempt from state and local taxes, making them even more attractive to investors in high-tax states.
  • Public bonds have a set maturity date, so investors know exactly when they will receive their principal back.

3) Bank Deposits

One of the safest investments you can make is a bank deposit.

Your money is backed by the full faith and credit of the United States government, and you’re insured by the Federal Deposit Insurance Corporation (FDIC) for up to $250,000 per account.

Plus, you’ll earn interest on your deposit, which can help grow your money over time. The FDIC has made changes recently that will benefit depositors as well.

You may not have noticed that many banks now pay more than 1% interest on checking accounts. That’s because under new rules.

Banks must now pay depositors at least 0.05% if they don’t offer other options for earning interest on deposits.

Plus, many banks offer CDs at higher rates than traditional savings accounts.

Pros Explanation

  • Bank deposits are a popular investment choice because they offer safety and peace of mind.
  • Your money is FDIC insured for up to $250,000 per account, so you know your money is safe. Interest rates on bank deposits are usually meager. Still, they may be higher if you have a particular account or relationship with the bank.
  • Minimum deposit requirements are usually low, so you can start investing with a small amount of money.
  • You can typically withdraw your money at any time without penalty. However, some accounts may restrict how often you can make withdrawals.
  • Bank deposits are relatively liquid investments, meaning you can access your money quickly if needed.

4) Hybrid Loans

A hybrid loan is a type of financing that combines debt and equity financing features.

With a hybrid loan, the lender provides you with a portion of the funds you need as a loan, and they also invest in your business.

This can be a great option if you have strong personal credit but need more funds than a traditional bank loan would provide.

The downside is that the lender will have a say in how you run your business, so it’s essential to ensure you’re on the same page before moving forward.

Pros Explanation

  • A hybrid loan is a type of financing that combines debt and equity financing features.
  • Hybrid loans can finance various projects, including start-ups, expansions, or purchasing equipment or real estate.
  • Hybrid loans typically have lower interest rates than traditional loans, making them an attractive option for businesses looking to save on financing costs.
  • Hybrid loans also offer lenders the potential for equity participation, which can provide additional security for the loan.
  • Repayment terms for hybrid loans are typically shorter than traditional loans, which can help businesses conserve cash flow.

5) Mutual Funds (HDFC FMP 2029 Plan)

HDFC FMP 2029 is a plan offered by HDFC mutual fund. The program has a 5-year lock-in period and an investment horizon of 10 years.

This fund seeks to generate returns by investing in a range comprising debt and money market instruments that will mature sometime before December 20, 2029.

This fund’s risk profile generally modest, making it appropriate for long-term investors.

This scheme offers monthly, quarterly, and semi-annual systematic investment plans (SIPs) with a minimum commitment of Rs 1,000.

Pros Explanation

  • HDFC FMP 2029 is a close-ended debt mutual fund scheme.
  • The scheme’s objective is to generate regular income and capital appreciation by investing in a portfolio of fixed-income securities maturing on or before 29th December 2029.
  • The scheme will invest in instruments such as government securities, corporate bonds, treasury bills, commercial papers, and certificates of deposits.
  • The minimum investment amount is Rs 5,000, and investors can make additional investments of Rs 1,000 and multiples thereof.
  • The scheme offers two options growth and dividend with the latter providing monthly payouts.

6) Government Schemes

Many government schemes offer great returns on investment. The Pradhan Mantri Jan Dhan Yojana provides an interest rate of 7.5% per annum on deposits up to Rs. 1 lakh.

The Sukanya Samriddhi Yojana offers an interest rate of 8.1% per annum on deposits up to Rs. 1.5 lakhs.

The Public Provident Fund offers an interest rate of 7.6% per annum on deposits up to Rs. 1 lakh.

The National Savings Certificate offers an interest rate of 8% per annum on deposits up to Rs. 1 lakh.

Pros Explanation

  • If you are looking for a long-term investment option with relatively low risk, consider investing in government schemes.
  • Low risk: Government schemes are often backed by the full faith and credit of the issuing government, meaning they are less likely to default on payments.
  • Attractive interest rates: Government schemes typically offer higher interest rates than fixed-income investments.
  • Flexibility: Many government schemes allow investors to choose how long they want to invest, making them more flexible than other options.
  • Diversification: Government schemes can help diversify your portfolio, as they are not directly linked to stock market performance.

7) High-Yield Savings Accounts

The high-yield savings account would be an excellent way to begin saving towards December 2022.

Your funds would be secure, then you will earn interest on them. Furthermore, you must withdraw your funds at any time without penalty.

Some High Yield Savings Accounts are:

  • CIT Bank: up to 2.45% APY
  • Barclays: up to 2.25% APY
  • Ally Bank: up to 2.20% APY
  • American Express: up to 2.10% APY
  • Discover: up to 1.90% APY
  • Capital One 360: up to 1.75% APY

Pros Explanation

  • If you’re looking for a location to park your money that will produce interest and be accessible when needed, a high-yield savings account can be a suitable alternative.
  • These accounts typically offer higher interest rates than traditional savings, making them a great way to grow your money.
  • An FDIC-insured institution. No monthly fee or minimum balance requirement. A competitive interest rate.
  • These kinds of accounts can also assist you meet federal income tax requirements.
  • They are often set up as tax-deferred IRA, meaning all the earnings from the account accumulate without taxing until they’re withdrawn.
  • The IRS has guidelines on how much can be contributed each year and who is eligible for an IRA.

8) Gold

Gold is an excellent investment for several reasons. It is a safe investment because it has been around for thousands of years and will continue to be used as a currency.

Gold would also be a smart investment since its value rises when the stock market falls.

Therefore, when you want a safe investment with high returns, gold is an excellent choice.

Pros Explanation

  • Gold appears to be a chemical element with the symbol Au (from the Latin word aurum) and the atomic number 79, attempting to make it is one of the elements with a higher atomic number occurring in nature.
  • This is a bright, somewhat reddish yellow, dense, soft, malleable, and ductile metal in its pure form.
  • Gold seems to be a precious metal that has been used for coinage, jewelry, and many other arts throughout recorded history. It is a relatively rare element.
  • Elsewhere in old, a certain amount of gold was commonly employed for monetary policy. Nonetheless, within the 1930s, gold coins were no longer produced as currency.
  • After 1971, the world gold standard was abandoned in favor of a fiat currency system. Above ground, there is a total of 197,576 tones of gold.

9) S&P 500 Index Fund/ETF

AS & P 500 Index would be a stock market index inside the United States determined by market capitalizations of 500 big businesses with common stock publicly listed or NASDAQ.

S&P Dow Jones Indices determine the S&P 500 index components and their weightings.

This is among the most popular equity indices. Many people believe that is one of the best depictions of the US stock market.

An S&P 500 Index Fund or ETF may be a suitable alternative when you want a safe investment with strong returns.

Pros Explanation

  • The S&P 500 Index Fund/ETF is one of the best investment options. It is a low-cost way to invest in the stock market and offers various benefits.
  • For example, the fund is diversified, so you are less likely to experience a loss if one particular stock goes down.
  • Additionally, the fund is well-managed and has a history of outperforming the market.

10) Money Market Accounts

The money market account would be a form of savings account with greater interest rates than a standard savings account.

Which makes it an excellent choice of growing your money.

Money Market Accounts are also FDIC insured, offering another layer of protection.

Pros Explanation

  • Money market accounts seem to be a form of savings account with greater interest rates than ordinary savings accounts.
  • They are also FDIC-insured, meaning your money is backed by the government by up to $250,000.
  • Money market accounts often have check-writing and debit card privileges, making them a convenient way to access your cash.
  • Some money market accounts also offer tiered interest rates, meaning the more you save, the higher your interest rate will be.
  • Some money market accounts have just a minimum balance requirement, while others may not.


Even though there are no assurances in investing, there could be certainly you may employ to reduce risk and enhance results. Expanding your portfolio by investing across multiple asset classes has proven to be among the most effective ways to achieve this. Investing in great companies with good fundamentals and solid management teams is another strategy to lessen risk.

Investing in companies that are undervalued by the market seems to be another strategy to increase rewards. Lastly, once that comes to investing, time is crucial.

Whenever stock prices are cheaper and everyone else is selling, it is the perfect moment to purchase. As reading this guide, you can reduce risk while increasing profits on your investing portfolio.