Best Low Risk High Yield Investments in 2025 (Yes, They Exist)

Because you want solid returns, not a heart attack.

Let’s be honest: we all want to grow our money without feeling like we’re gambling at a high-stakes poker table. Especially in 2025, when markets feel unpredictable and inflation still eats into your savings, finding the Best Low Risk High Yield Investments can feel like hunting for a unicorn.

But good news: they exist. You just need to know where to look and how to balance expectations.

This blog will break it all down — from truly safe investments to low-risk investments that actually yield results, and even how to approach risk if you’re just starting out. Let’s dive in.

1. High-Yield Savings Accounts (HYSAs)

Let’s start simple. These accounts are a no-brainer in 2025.

• APY in 2025: ~4% to 5%
  
• Risk level: Practically zero — they’re FDIC-insured
  
• Why it works: Your money stays liquid, grows slowly, and stays safe.
  

Best for: Emergency funds, short-term goals, and people who hate the idea of market risk.

✅ Try:

• Marcus by Goldman Sachs
  
• Ally Bank
  
• SoFi Savings
  

2. I Bonds (Series I Savings Bonds)

Looking for inflation protection? These U.S. government-backed bonds are indexed to inflation and offer a solid yield without stock market exposure.

• Limit: $10,000/year per person
  
• Tax advantage: Interest is federal tax-deferred until redemption
  

Learn more on TreasuryDirect.

3. Certificates of Deposit (CDs)

CDs are ideal when you don’t need the money right away and want guaranteed growth.

• Returns: ~5.25% for 12-month CDs in 2025
  
• FDIC-insured: Yes
  
• Catch: You can’t access funds until the term ends (without penalties)
  

✅ Try:

• Synchrony Bank
  
• Capital One CDs

4. Money Market Funds

These aren’t the same as money market accounts — they’re mutual funds that invest in short-term, low-risk assets like U.S. Treasuries and commercial paper.

• Yield in 2025: ~3.5–4.5%
  
• Liquidity: Usually next-day access
  
• Best for: Parking cash with a bit more yield than a savings account
  

✅ Consider:

• Vanguard Federal Money Market Fund (VMFXX)
  

5. Dividend-Paying ETFs

These exchange-traded funds hold stocks that pay consistent dividends, making them attractive for regular income with a moderate risk profile.

• Popular low-risk ETFs:
  
  • Vanguard Dividend Appreciation ETF (VIG)
    
  • Schwab U.S. Dividend Equity ETF (SCHD)
    

💡 These ETFs are ideal if you want long-term wealth growth plus regular income.

6. Short-Term Bond Funds

Short-term bond funds like BSV or SHV are smart choices when interest rates are high and you don’t want to be locked in long term.

• Why they’re low-risk: They invest in short-maturity, high-quality debt
  
• Returns in 2025: 3%–4%, relatively stable
  

✅ Top picks:

• iShares Short Treasury Bond ETF (SHV)
  
• Vanguard Short-Term Bond ETF (BSV)
  

7. REITs (Real Estate Investment Trusts)

Want real estate exposure without actually owning property? REITs generate income from rentals, and 90% of profits are legally required to be distributed to shareholders.

• Best for: Passive income lovers
  
• Risks: Market fluctuations — but lower than direct property ownership
  

✅ REIT ETFs:

• Vanguard Real Estate ETF (VNQ)
  

8. Robo-Advisors with Low-Risk Portfolios

Platforms like Betterment or Wealthfront offer professionally managed portfolios based on your risk tolerance. If you set your preference to “low-risk,” you’ll likely get a mix of bonds, cash, and stable ETFs.

• Pros: Hands-off, diversified
  
• Cons: Management fees (usually 0.25%)
  

✅ Try:

• Betterment
  
• Wealthfront
  

9. Best No-Risk or Very Low-Risk Options (Summary Table)

Investment Option	Return (2025 Est.)	Liquidity	Risk
HYSA	4–5%	High	Low
I Bonds	4–6%	Low	Very Low
CDs	5–5.25%	Low	Very Low
Money Market Funds	3.5–4.5%	Medium	Low
Short-Term Bonds	3–4%	Medium	Low
Dividend ETFs	3–5% + growth	High	Moderate
REITs	4–6%	High	Moderate

What Makes an Investment “Low Risk” in 2025?

Let’s clear this up:

✅ Low risk investments don’t mean zero risk — it means the chance of losing money is low. They’re typically backed by solid institutions (like the government or major financial firms) and offer predictable returns.

Examples of low-risk investments:

• U.S. Treasuries
  
• High-yield savings accounts
  
• Short-term government bond ETFs
  
• Certificates of deposit (CDs)
  

What to Avoid If You Want Low Risk

Avoid anything that:

• Promises unrealistic returns (10%+ with “no risk” = scam alert)
  
• Has unclear investment structures (watch out for some crypto or penny stocks)
  
• Locks your money for too long without flexibility (some annuities do this)
  

Final Thoughts: What’s the Right Pick for You?

That depends on your goals, timeline, and how much sleep you want to lose at night. But if you’re looking for a safe place to grow your money without taking wild risks, the 2025 market is offering more low-risk high-yield options than we’ve seen in years.

👉 Whether you’re parking your emergency fund or looking for retirement investments, these options give your money room to grow — safely.

Remember: low-risk doesn’t mean low-reward when you play your cards right.

Helpful External Links:

• FDIC: Understanding Deposit Insurance
  
• U.S. Treasury I Bonds Info
  
• SEC: Understanding REITs
  
• FINRA: Investing in Bonds