If you're looking for what's considered a less risky investment than buying stocks, bonds or certificates of deposit may be a good idea. If you're not sure whether you should be buying bonds vs. certificates of deposit, here is some information that can help you decide.
First, let's look at the choices:
CDs are a low-risk way to save money. You put your money in, and it accumulates interest for however long the term is. In most cases, you can be penalized for early withdrawal.
Certificates of deposit are FDIC insured. Bonds are not, but some have tax benefits you need to consider if you're buying bonds vs. certificates of deposit.
You can buy U.S. Savings Bonds through a government website. In addition, they are considered extremely safe investments because they are backed by the U.S. government. U.S. Savings Bonds include Series EE Savings Bonds or Series I Savings Bonds. According to the government website, Series EE Bonds are bought at 50 percent of face value; so $50 buys a $100 Series EE bond.
Municipal Bonds are offered by local governments, towns, cities, etc. One benefit of buying municipal bonds vs. certificates of deposit: is that many municipal bonds are not taxed by the federal government, making them an attractive option for investors.