If you’re new to investing, the sheer number of options for the best investments can feel overwhelming. But starting small with the right investments can set you on the path to financial growth. By choosing beginner-friendly strategies that align with your financial goals and risk tolerance, you can build confidence and create a solid foundation for long-term success by focusing on the best investments available today.
1. High-Yield Savings Accounts
For those who prefer a low-risk investment, high-yield savings accounts are a great place to start. These accounts typically offer significantly higher interest rates than traditional savings accounts, and your money remains easily accessible. They’re one of the best investments for preserving capital while earning a steady return.
Here are three highly recommended high-yield savings account options:
| Bank/Institution | APY (Annual Percentage Yield) | Advantages |
|---|---|---|
| BECU (Boeing Employees Credit Union) | 6.17% (on the first $500 deposit) | – High APY: Earn a competitive 6.17% APY on the first $500 deposit. – No monthly fees: No account maintenance fees. – Membership: Primarily for Boeing employees, but others can also apply for membership. |
| Andrews Federal Credit Union | Up to 5.75% | – High APY: Offers up to 5.75% APY, highly competitive in the market. – Open nationwide: Available to everyone, regardless of location. – No minimum balance: No need to maintain a minimum balance. |
| BrioDirect | 5.35% (minimum deposit $5,000) | – High APY: Offers 5.35% APY, ideal for larger deposits. – Easy online access: User-friendly online banking services. – FDIC insured: Deposits are insured up to $250,000 by the FDIC. |
Note: Interest rates may fluctuate based on market conditions. It’s recommended to confirm the latest details directly with the institution before opening an account.
2. Exchange-Traded Funds (ETFs)
ETFs are one of the easiest and best investments for beginners looking to build a diversified portfolio with minimal upfront investment. They allow you to invest in a basket of stocks, bonds, or other assets, reducing your risk while potentially offering steady growth over time.
Here are three highly recommended Exchange-Traded Funds (ETFs) for beginner investors, selected for their simplicity, diversification, and track record:
| ETF Name | Focus/Index | Advantages |
|---|---|---|
| Vanguard S&P 500 ETF (VOO) | S&P 500 Index | – Diversified Exposure: Invests in 500 of the largest U.S. companies. – Low Fees: Expense ratio of just 0.03%. – Strong Performance: Historically delivers consistent long-term returns. |
| iShares Core MSCI Emerging Markets ETF (IEMG) | Emerging Market Stocks | – Global Exposure: Provides access to stocks in developing markets like China, India, and Brazil. – Low Cost: Expense ratio of 0.09%. – Growth Potential: Targets high-growth economies. |
| Invesco QQQ Trust (QQQ) | NASDAQ-100 Index | – Tech-Focused: Includes leading technology companies like Apple, Microsoft, and Amazon. – High Liquidity: Easily tradable with a strong market presence. – Growth-Oriented: Ideal for investors seeking tech sector exposure. |
Note: While these ETFs offer diversification and growth potential, their performance depends on market conditions. Always review your risk tolerance and financial goals before investing.
3. Certificates of Deposit (CDs)
CDs are among the best investments for those who want predictable returns. When you invest in a CD, you agree to lock in your money for a set term, earning a fixed interest rate.
Here are three highly recommended high-yield savings account options:
| Bank/Institution | APY (Annual Percentage Yield) | Advantages |
|---|---|---|
| Ally Bank | 4.25% | – No monthly maintenance fees. – Easy online management. – FDIC insured: Deposits up to $250,000 are protected. |
| Marcus by Goldman Sachs | 4.30% | – High APY: Competitive interest rates. – No minimum deposit required. – Fee-free account with no hidden charges. |
| Discover Bank | 4.20% | Trusted name in banking. – User-friendly platform. – Flexible access: Allows easy transfers and withdrawals. |
Note: Interest rates are subject to change based on market conditions. Always confirm the latest rates and terms with the institution before opening an account.
4. Trusted Sports Betting
In regions where sports betting is legal and regulated, it can be one of the best investments for those who enjoy sports and understand game strategies. By taking a disciplined and strategic approach, sports betting offers a unique opportunity to grow your money while engaging in a thrilling activity.
Here are three examples of trusted sports betting platforms that operate in regions where sports betting is legal and regulated:
| Platform | Features | Advantages |
|---|---|---|
| DraftKings | Legal in multiple regions | – User-friendly interface for both beginners and experienced bettors. – Promotions and bonuses: Offers competitive sign-up and risk-free bet bonuses. – Wide variety of sports to bet on, including NFL, NBA, MLB, and more. |
| FanDuel | Popular and widely trusted | – Live betting options for real-time engagement. – Parlay insurance to reduce risks on specific bet types. – Integrated fantasy sports platform for users who also play daily fantasy sports. |
| BetMGM | Global brand with a strong reputation | – Broad market coverage: Offers betting options for international sports leagues and niche sports. – Mobile app convenience with seamless navigation. – Safe and secure: Licensed and regulated by relevant authorities. |
Note: Sports betting involves financial risks. It is essential to bet responsibly, set limits, and ensure you’re using platforms licensed and regulated in your jurisdiction.
5. Robo-Advisors
Robo-advisors are among the best investments for beginners who want professional-level investment management without the hefty fees. These platforms use algorithms to create and manage a diversified portfolio tailored to your financial goals and risk tolerance.
Here are three popular Robo-Advisors platforms that are trusted for their ease of use and efficient investment management:
| Platform | Features | Advantages |
|---|---|---|
| Betterment | Automatic portfolio management | – Low fees: Management fee starts at 0.25% annually. – Tax-efficient investing: Offers tax-loss harvesting. – Goal-based tools: Helps users create personalized investment plans. |
| Wealthfront | Comprehensive financial planning | – Financial planning tools: Includes retirement and college savings calculators. – Automated rebalancing to maintain portfolio alignment. – Low minimum: Start investing with just $500. |
| Acorns | Micro-investing for beginners | – Round-up feature: Automatically invests spare change from daily purchases. – Educational resources for new investors. – No minimum balance required to start. |
Note: Each platform offers unique features tailored to different types of investors. Consider your financial goals, investment horizon, and risk tolerance before choosing a Robo-Advisor.
Your Journey to Success with the Best Investments
Investing doesn’t have to be intimidating. With options like high-yield savings accounts for security, ETFs for diversification, and trusted sports betting for innovative growth, there’s something for everyone. Match your choices to your risk tolerance and financial goals, and start small to build confidence. Over time, these strategies can help you grow your wealth and achieve financial success.
