Overall, there are a number of investment options. Each has a variety of different options and features. As such, you can choose what type of investment best suits you.
For example, savings accounts are a good investment for those that aim for guaranteed returns. All savings accounts will provide a guaranteed return, based on their interest rate. The higher the interest rate is, the more the savings account will return. As such, for the best saving account returns the highest interest rate accounts are those to invest in.
In addition to this, savings accounts also have other advantages. A number of saving accounts are easy access accounts. As such, this also means that they are among the most accessible investments, and that you can withdraw savings from the deposit. Therefore, for easy access investments saving accounts are among the best investments.
Still, saving accounts will only ever return the quoted interest rate. As such, some consider them to be more limited investment options. Alternatives to saving accounts are stocks and share investments which can come in a variety of shapes and sizes. These investments can fluctuate, and are not necessarily guaranteed a return. However, when markets are bullish they can provide potentially much better returns than a savings account.
As such, for more ambitious investors stocks and shares can be a more suitable investment option. Overall, there a number of types of stock and share investments which come in variable packages. Most packages may usually require a small fee to be paid by the investor to the provider, as a percentage of their overall investment. As such, when choosing a share based investment this needs to be checked first.
Other investments include things like bonds. Bonds are not entirely dissimilar from savings account, in that they provide an interest based return. However, bond interest rates are usually higher than saving accounts, and are also fixed. Therefore, they will provide greater returns.
As such, in this respect they are a better investment option. However, for those that prefer easy access investments bonds are not ideal. Most bonds require that the investment be made over a longer time period, and will not return the quoted interest if they are closed before that time period has been covered by the investment.
Overall, choosing what to invest in depends largely on the type of investment that best matches an investors requirements. For those that want easy access investments with guaranteed returns, then saving accounts are best. Alternatively, for those that want potentially greater returns then stocks and share investments could well deliver this. If you have a larger unneeded deposit then bond investments can be a good longer term investment option. Regardless, it is always worth comparing the quoted interest rates if relevant, and also any percentage fee that may be associated with the investment.