Conservative saving is suitable for money intended for the short or medium term, when the goal is to keep it available and stable while reducing risk. Instead of leaving the money in a checking account, where inflation erodes its value, you can choose options that offer some return and a relatively high degree of certainty. In this section, we will review common conservative options and the advantages and disadvantages of each.
Bank deposit: the most familiar and simple way to “lock away” money at the bank
A solid and liquid short-term mutual fund as an alternative to a bank deposit
A loan to the state that offers savings with a high level of security
A comparison of 3 main options for solid savings