Afraid of investing during a recession? Here are some lower-risk market bets so you don’t just sit in cash

Lowest risk: High-yield savings account. Many online banks, such as Simple, offer high-yield savings accounts with minimal fees, as do some major banks, such as Citi. This is the most straightforward and flexible option, albeit the one with the lowest returns. Choose an account that offers at least 1% APY, or ideally 1.2%, or higher.

Low risk: Money market account. Some money market accounts offer rates somewhat higher than the typical high-yield savings account – some can yield as much as 1.75%. Sometimes, however, there may be limitations on how many withdrawals you can make in a specified period of time, as well as higher fees, so read the fine print carefully when choosing between this option and a high-yield savings account.

Low Risk: Treasury inflation-protected securities (TIPS). TIPS provide a low-risk way to buy a fixed income security that is guaranteed to shield your money from inflation. Still, selling TIPS can be a two-step process that includes transferring the security to a bank or broker, and you may not receive face value if you sell before maturity. This makes it a less-attractive option for emergency savings.

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