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Keeping your extra money safely locked away is a good thing to protect it from unnecessary spending and from unwise financial decisions. Basically, the biggest threat of losing the money you set aside is actually yourself. Impulsive spending and unguided budget allocation can really show off a big chunk of your kept money. Sometimes, the best thing to do is to keep your hands off of your money for the time being. If you have big plans like going on vacation, buying a new car or paying off a debt, you’ll have to keep it in the banking sideline first until you have enough money to pay for the intended use. Starting your savings can be a tough task, but there are several ways you can keep your money tucked away safely while gaining something in return.

1.) Open A Savings Account

Keeping your money in the bank is one of the easiest and safest options you can have for keeping your money safe. Safety is your top priority, but the interest rate or potential gain shouldn’t be that far behind when you want to save. Make sure that the bank you entrust your money with and where you save your extra money has a deposit insurance in place in case the bank goes bust.

In Sweden, for example, it has a system in place to guarantee savings up to a certain level. This is also true with other countries that have banking institutions. Banking staff at provide one of the best savings options by giving a secure place to save your money and with a high interest rate of 0.90 percent for your deposits of up to 1 million kronor. Savings accounts with Instabank in Sweden are covered up to € 100,000 by the Banks Guarantee Fund (corresponding to the Deposit Guarantee with the Swedish National Debt Office), which Instabank is a member of in Norway.

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2.) Bonds

Another option for the best places to park your money is in bonds. In a nutshell, bonds are like loans you make to different organizations. There are different types of bonds available, but for starters it is recommended that you go for government bonds. Government bonds are one of the safest bonds, you can invest in, with very minimal to no risk and also stable financial gains. Once you are confident with investing in bonds, you can explore other options, but there are various risk levels you will also have to consider. You must keep in mind that bonds are not completely safe. As an example, the risk of default increases if you get bonds from organizations with low ratings.

3.) Exchange-Traded Funds (ETFs)

If you have the propensity to explore, take risks and look for more diversity in your investment options, you may consider Vanguard VSMAX which is also available as an ETF.If you are planning to explore additional options for your bonds, you also check out the bond ETF option. Basically, exchange-traded funds are collections of investments that are traded on the stock market like regular stocks. You can invest in a variety of bonds and take advantage of their relative safety. As with any other investments, ETFs also carry their own risks, and they are not insured. With the risks carefully considered, bond ETFs are also reasonably stable and can provide a stable and secure place to keep and grow your money.

4.) TIPS and I-Bonds

Treasury Inflation-Protected Securities (TIPS) and I-Bonds both are investments that offer principal protection and purchasing power protection, which are good if you are concerned with inflation. These investments are backed by the US government – which is backed by US taxpayers, who widely considered as the most stable taxpayers in the world. Both are also indexed in the Consumer Price Index so you also have a reliable and up-to-date reference of the changes in the price level of a market basket of consumer goods and services purchased by households. In monetary terms, CPI can be considered as a measure of the changes in the purchasing power of a currency and the rate of inflation. Both TIPS and I-Bonds are adjusted for inflation, which makes them relatively stable investments that preserve your purchasing power and your capital.

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5.) Certificates of Deposit (CDs)

Another safe way of putting your money into investment is into certificates of deposit. CDs are protected by the Federal Deposit Insurance Corporation (FDIC) insurance, so you know that your money is safe and guaranteed. If you are willing to invest in a longer CD term, you can reap larger yields, while also keeping your money safe.

There is often a catch though, when it comes to a longer CD term. As the yields will rise, you will also be unable to take advantage of them. A way to counteract this problem is through creating a CD ladder. A CD ladder is an investment strategy that wherein an investor divides the amount of money to be invested in equal amounts in certificates of deposit (CDs) with different maturity dates. This strategy decreases both interest rate and reinvestment risks. As an investor, you can take advantage of possibly higher rates while your money gradually grows in safety.

Aside from external threats to your money, such as scammers and fraudulent entities, you yourself can be the biggest threat of losing your saving money. There are many safe money-keeping and investment options that keep your money safely deposited and giving you the opportunity to earn interest or yields. It just takes the commitment to start and to follow through with the saving option you choose.