In 2022, there are 10 great investments.

For most people, investment is a necessity if they want to have a secure financial future. As the coronavirus epidemic proved, an apparently steady economy may be turned on its head in an instant, leaving individuals who were unprepared for difficult times scrambling for money.

What are the best investments for investors to make this year, given the low yields on bonds and CDs, the skyrocketing values of some assets, and the economy’s struggle with rising inflation? A blend of safer and riskier, higher-return investments is one option.

High-yield savings accounts are the best investments in 2022

  1. Short-term deposit certificates
  2. Bond funds with a short maturity
  3. Bonds in Series I
  4. Corporate bond funds with short maturities
  5. Index funds tracking the S&P 500
  6. Stock funds with dividends
  7. Value-oriented mutual funds
  8. Index funds that track the Nasdaq 100
  9. Cryptocurrency rental housing

Why should you invest?

Investing may supplement your income, help you save for retirement, or even get you out of a financial bind. Above all, investing helps you achieve your financial objectives by increasing your purchasing power over time.Maybe you just sold your house or won a fortune. Allowing your money to work for you is a good option.

While investing might help you grow your money, you must consider the advantages and disadvantages. And you’ll need to be in a financial position to do so, which means having manageable debt, a sufficient emergency fund, and the ability to ride out market ups without needing to use your own money.

There are numerous investment options accessible, ranging from extremely safe options such as CDs and money market accounts to medium-risk options such as corporate bonds and even higher-risk options such as stocks.stock index funds. That’s fantastic news since it means you’ll be able to select investments that provide a range of returns while still fitting your risk profile.It also means you can mix and match investments to build a well-rounded and varied — and thus safer — portfolio.

Overview of 2022’s best investments

1.Savings accounts with high yields

On your cash balance, a high-yield online savings account offers you interest. High-yield internet savings accounts are accessible vehicles for your money, just like a savings account earning pennies at your local bank. Online banks generally provide substantially higher interest rates due to lower overhead costs. Furthermore, you may usually access the funds by moving them to your primary bank or via an ATM.

Savings accounts with high yields

A savings account is a good choice for folks who will require money in the near future.

The best investment

A high-yield savings account is suitable for risk-averse people who need money urgently and don’t want to risk losing it.


Because the banks that provide these accounts are FDIC-insured, you don’t have to worry about losing your money.. While high-yield savings accounts, like CDs, are generally secure investments, if rates are too low, you risk losing purchasing power over time due to inflation.

What is the best place to start a savings account?

You can find the greatest high-yield savings accounts on Bankrate’s list of the best high-yield savings accounts. Banks and credit unions, on the other hand, provide savings accounts, however you may not obtain the best rate.

2. Short-term deposit certificates

Certificates of deposit, or CDs, are issued by banks and provide a higher interest rate than savings accounts.When you expect rates to climb, short-term CDs may be a better alternative because you can reinvest at higher rates when the CD matures.

The maturity dates for these federally insured time deposits might range from a few weeks to several years. Because they are “time deposits,” you can only take the money out after a certain amount of time has passed.

The financial institution pays you interest on a CD at set intervals. When it matures, you will receive your original capital plus any interest earned. It pays to browse around for the finest deals online.

CDs are a wonderful choice for seniors who don’t require quick income and can lock away their money for a while because of their safety and larger returns.

A CD is a good choice for risk-averse investors, especially those who need money quickly and are willing to lock up their funds in exchange for a higher rate than a savings account.


CDs are regarded as secure investments. However, they come with reinvestment risk, which means that if interest rates decrease, investors would lose money if they reinvest principal and interest in new CDs with lower rates, as we saw in 2020 and 2021. The risk is that rates may climb, but investors will be unable to benefit because their money is already trapped into a CD. With rates predicted to rise in 2022, sticking to short-term CDs may make sense, allowing you to reinvest at higher rates in the near future.

It’s crucial to remember that inflation and taxes can dramatically reduce your investment’s purchasing power.

Where can I get a CD?

Instead of relying on what’s available solely in your local area, Bankrate’s list of top CD rates can help you find the best rate across the country. Banks and credit unions also sell CDs, however you’re unlikely to find the greatest rate in your area.

3. Government bond funds with short maturities

Government bond funds are mutual funds or ETFs that invest in debt securities issued by the US government and its agencies. Short-term government bond funds, like short-term CDs, are less risky if interest rates rise, as they are expected to do in 2022.

The funds invest in government debt as well as mortgage-backed securities issued by government-sponsored firms like Fannie Mae and Freddie Mac. These government bond ETFs are ideal for conservative investors.

These funds are also appropriate for first-time investors and cash flow investors.

The best investment

For risk-averse investors, the best investment for Government bond funds may work well, albeit some types of funds (such as long-term bond funds) may fluctuate much more than short-term funds owing to interest rate changes.


Risk funds that invest in government debt instruments are considered among the safest assets because the bonds are backed by the US government’s full faith and credit.

Existing bond prices fall as interest rates rise; conversely, existing bond prices rise as interest rates fall. Long-term bonds, on the other hand, have a higher interest rate risk than short-term bonds.Rising rates will have little effect on short-term bond funds, which will gradually increase their interest rate as rates climb.

If inflation is strong, though, the interest rate may not be able to keep up, and you will lose purchasing power.

Where can I buy it?

Bond funds are sold by many online brokers, particularly those that allow you to trade ETFs or mutual funds.Most ETF brokers allow you to buy and sell them without paying a commission, but mutual funds may charge a commission or a minimum purchase, albeit not always.

4. Bonds from Series I

Individual investors can buy savings bonds from the US Treasury, and the Series I bond is a good option for 2022. This bond helps to provide inflation protection. It pays a base interest rate before adding a component dependent on the rate of inflation. As a result, the dividend increases as inflation rises. The opposite is also true: as inflation falls, so does the interest rate. Every six months, the inflation adjustment is reset.

If not redeemed for cash, Series I bonds earn interest for 30 years.

The best investment

Series I bonds, like other government-issued debt, appeal to risk-averse investors who do not want to risk default. Investors who want to protect their money from inflation may consider these bonds. However, investors are limited to purchasing $10,000 worth of Series I bonds in a single calendar year, however you can use up to $5,000 of your annual tax refund to acquire them.


The Series I bond protects your money from inflation, which is a major disadvantage of most bonds. These bonds, like all government-issued debt, are regarded as among the safest in the world in terms of default risk.

Where can I buy it?

At, you can purchase Series I bonds directly from the US Treasury. The government will not charge you a commission.

5.Corporate bond funds with short maturities

Corporations may raise funds by selling bonds to investors, which can then be pooled into bond funds that own bonds issued by dozens of companies. The average tenure of short-term bonds is one to five years, making them less subject to interest rate swings than intermediate- or long-term bonds.

Corporate bond funds

Investors seeking cash flow, such as retirees, or those seeking to reduce overall portfolio risk while still earning a return, should consider corporate bond funds.

The best investment

Short-term corporate bond funds may appeal to risk-averse investors seeking a greater yield than government bond funds.


Short-term corporate bond funds, like other bond funds, are not insured by the FDIC. Investors in investment-grade short-term bond funds often earn larger returns than those in government and municipal bond funds.

However, more profits come with increased risk. Companies’ credit ratings may be reduced, or they may experience financial difficulties and default on their obligations. Make sure your fund is made up of high-quality corporate bonds to mitigate this danger.

Where can I buy it?

You can buy and sell corporate bonds funds with any broker who allows you to trade ETFs or mutual funds. Trading ETFs without paying a commission is common, although buying a mutual fund may require a commission or a minimum purchase.

6.Index funds tracking the S&P 500

An S&P 500 index fund is an excellent option to more typical banking products or bonds if you wish to attain larger returns, albeit it does come with increased volatility.

The fund is made up of around 500 of the largest American corporations, which means it includes many of the world’s most successful businesses. Two of the index’s most noteworthy members, for example, are Amazon and Berkshire Hathaway.

An S&P 500 index fund, like practically any other fund, provides rapid diversification by allowing you to hold a portion of each of those firms. The fund is more resilient than many other investments because it invests in companies from several industries.. Over time, the index has averaged a 10% yearly return. These products have low expense ratios (the amount the management business costs to run the fund) and are among the best index funds available.

An S&P 500 index fund is an excellent choice for beginning investors since it provides broad, diversified stock market exposure.

The best investment

An S&P 500 index fund should be considered by every stock investor looking for a diversified investment that is willing to stay invested for at least three to five years.


Because it is made up of the market’s top companies and is widely diversified, an S&P 500 fund is one of the safer methods to invest in equities. Of course, because equities are still included, it will be more volatile than bonds or bank products. It’s also not insured by the government, which means you could lose money due to market swings. Over time, though, the index has done admirably.

Investors may wish to continue with prudence and adhere to their long-term investing plan rather than rushing in following the index’s pandemic-driven drop in March 2020.

Where can I buy it?

Any broker that permits you to trade ETFs or mutual funds can sell you an S&P 500 index fund. ETFs are usually commission-free, so you won’t have to pay anything extra, whereas mutual funds may modify their commissions and demand a minimum purchase.

7. Stock funds that pay dividends

Stocks that generate dividends might make your stock market investments a little safer.

Stock funds

Dividends are portions of a company’s profit that can be distributed to shareholders, usually quarterly. You can profit from a dividend stock not only through long-term market gains, but also through short-term cash flow.

Individual stock purchases, whether or not they provide dividends, are best suited for intermediate and advanced investors. You can, however, reduce your risk by buying a group of them in a stock fund.

The best investment

Dividend stock funds are a terrific choice for practically any type of stock investor, but they are especially good for those seeking income. These may appeal to those who require income and can invest for longer periods of time.


Dividend stocks, like any other stock investment, carry risk. They’re safer than growth stocks or other non-dividend paying stocks, but you should choose them carefully for your portfolio.

Rather than going for the greatest current yield, invest in companies that have a history of raising dividends. That could indicate impending danger. Even well-regarded companies might face financial difficulties, so a good reputation is no guarantee that the dividend will not be reduced or eliminated.

However, you can reduce your reliance on any particular firm by investing in a dividend stock fund with a diverse portfolio of assets.

Where can I buy it?

Any broker that deals in dividend stock funds can purchase them as ETFs or mutual funds. ETFs may be more advantageous because they often have no minimum buy amount and are typically commission-free. Mutual funds, on the other hand, may have a minimum purchase requirement and, depending on the broker, a commission charge.

8. Invest in value stock funds

Many investors are unsure where to place their money in light of the recent run-up in many equities, which could lead to considerable overvaluation. A nice choice might be value stock funds. These funds invest on value companies, which are cheaper than other stocks on the market. Furthermore, when interest rates rise, as they are predicted to do in 2022, value equities perform better.

Many value stock funds also pay a dividend, which is a major draw for many investors.

The best investment

Value stock funds are appropriate for those who are comfortable with the risk of stock investment. Stock fund investors should have a longer investment horizon, at least three to five years, to ride out any market turbulence.


Value stock funds are safer than other types of stock funds because of their low cost. However, because they are still made up of stocks, they will move far more than safer assets like short-term bonds. Neither are value stock funds insured by the government.

Where can I buy it?

The two most common types of value stock funds are exchange-traded funds (ETFs) and mutual funds.Most major online brokers offer ETFs without a commission and without a minimum purchase restriction. Mutual funds, on the other hand, may have a minimum purchase requirement, and internet brokers may charge a commission to trade them.

9. Index ETFs tracking the Nasdaq 100

Investors who want exposure to some of the biggest and greatest tech companies without having to pick winners and losers or evaluate specific companies can consider an index fund based on the Nasdaq-100.

The fund invests in the top 100 Nasdaq firms, which are among the most successful and stable in the world. Apple and Facebook are two such corporations, each accounting for a significant share of the total index. Another notable member firm is Microsoft.

A Nasdaq-100 index fund provides immediate diversification, ensuring that your portfolio is not vulnerable to a single company’s failure. The top Nasdaq index funds have a low expense ratio and are a low-cost option to own all of the index’s companies.

The best investment

Stock investors seeking gain and ready to deal with high volatility should consider a Nasdaq-100 index fund. Investors should be prepared to commit to owning it for three to five years at the very least. When opposed to investing in with a lump sum, using dollar-cost averaging to get into an index fund trading at all-time highs can help reduce your risk.


This collection of equities, like any publicly traded stock, might fall in value. While the Nasdaq-100 has some of the most powerful technology businesses, they are also among the most valuable. They are expected to decline rapidly in a downturn due to their high value, however they may increase again during a recovery.

Where can I buy it?

ETFs and mutual funds are both available for Nasdaq-100 index funds. Most brokers offer fee-free ETF trading, although mutual funds may charge a commission and require a minimum purchase quantity.

10.Housing for rent

If you’re ready to manage your own properties, rental housing might be a terrific investment. And, with mortgage rates still near all-time lows, now could be an excellent moment to finance the purchase of a new home, even if the uncertain economy makes running it more difficult.

Housing for rent

To choose this path, you’ll need to find the correct property, finance it or purchase it yourself, maintain it, and deal with tenants. You can do quite well if you make good purchases. However, you won’t be able to buy and sell assets on the stock market with a single click or tap on your internet-enabled smartphone. Worse, you might have to deal with a 3 a.m. call about a burst pipe.

When it comes time to retire, though, if you hold your assets over time, progressively pay down debt, and increase your rents, you’ll most likely have a strong cash flow.

The best investment

Long-term investors that wish to manage their own properties and produce consistent cash flow should consider rental housing.


As investors in the mid-2000s realised, housing, like any other asset, may be overrated. Despite the economy’s difficulties, property prices rose in 2020 and 2021 due to low mortgage rates and a limited housing supply. Also, if you ever needed cash urgently, the lack of liquidity could be a concern. If you need a new roof or air conditioning, you may have to come up with a large sum of money, and inflation could substantially affect the cost of replacing these components. Of course, you risk the property remaining vacant while you continue to pay the mortgage.

Where can I buy it?

To find rental homes, you’ll probably need to work with a real estate broker, or you can create a network of people who can find you better offers before they hit the market.