Investing money is a smart move as it lets you go beyond your maximum earning potential. Some of the smartest investors who made it big, started out really small. What accelerated their growth wasn't how much they invested, but where they invested it. It takes a lot of study and realistic analysis to identify good investment choices. Here are the range of options that you could choose from, in ascending degree of inherent risk involved: Savings Bank Account The safest bet is to invest your money in a saving bank account that provides a good interest rate. Some banks provide a progressive interest rate that increases with the amount of money invested. Though the returns are quite low, they are guaranteed and come with almost no risk. Look for banks with a good track record, FDIC insurance (limited to $100,000) and comparatively high interest rate on savings accounts. You may also open a savings account at a credit union. Ensure that your account is insured through the NCUSIF (National Credit Union Share Insurance Fund). As in the case of banks, look for high interest rates. A savings account is a good place to park the cash component of your entire portfolio. It acts as your emergency fund with its guaranteed liquidity, while also earning a decent amount of interest for you. GoldGold has traditionally been the bulwark against inflation and market volatility. Some of the best investments in recession are gold investments. Gold prices have always been known to increase with time over the years. This makes gold a smart investment during recessionary times. It is one of the safest and oldest investment options that almost guarantees a good return. You may choose to buy gold bullion directly in the form of coins, jewelry or bars. Alternatively, you may invest in it indirectly, through gold ETFs (Exchange Traded Funds) and gold certificates. On the other end of the risk spectrum, you may invest in gold derivatives like options, futures and forwards. Financial experts recommend at least 5% to 10% exposure to gold, as part of the portfolio. Certificate of Deposit If you are looking for guaranteed and fixed returns, going for a certificate of deposit would also be one of the best low risk moves you could make. You deposit a certain amount of money with a bank, for a fixed period of time. You cannot withdraw that money till the certificate of deposit matures. After maturity, the bank returns you the principal amount of money, along with interest earned. The period for such an investment may be anything from 6 months to 5 years. Research thoroughly and look for CDs with medium to high interest rates. These are great investments options where you can park your money safely and earn decent interest with time. Roth IRA and 401(k) Plans If you need to create a retirement plan, Roth IRA, traditional IRA and 401 (k) plans are good choices to opt for. Know about other types of retirement plans too. Not only do they carry tax benefits, but their return is guaranteed after retirement. While the 401 (k) plans are usually employer-sponsored, an employee can make a greater contribution if he wants. Roth IRA, a type of individual retirement account, is one of the most trusted retirement planning investment options. Consult a financial adviser for detailed information. This is the safest way to invest, if you are thinking of post-retirement financial security. Mutual Fund Investment If you are willing to take some degree of risk, you can invest in mutual funds. A mutual fund pools in money from multiple investors to buy securities of various kinds. The profits are shared with the investors. Risk in mutual fund investment arises from volatility of the prices of securities purchased. Professional management of your invested money, easy liquidity and diversity, are some of the inherent advantages of mutual funds. Most importantly, they are affordable investments. Research the past performance of the fund, the sectors it invests in, fees and commissions charged, consistency of returns and the quality of management, before going ahead. Stocks and Other Securities Instead of indirectly investing in the securities market through mutual funds, you can think of directly investing in stocks and bonds. Stock investing comes with the highest degree of risk as your returns entirely depend on how your stocks performs. Before buying stocks for the first time, you need to understand the stock market investing basics. You need to take help from an expert who is well-versed in the currents and undercurrents of the stock market or engage in thorough stock research on your own to determine the best stocks to invest. There are stocks that pay dividends to the share holders, which can guarantee regular income. Investing in the stock market is the most high risk option, but also the one with highest returns. Stocks with large market capitalization, the so-called blue chip stocks make fore safe bets. All the same, their prices may set them out of your reach. Look for stocks with a high return on investment, positive operating cash flow, high P/E ratio and promising growth prospects in the future.