Start saving with a certificates of deposit, or CD. Investors stow money in a CD for a number of years, usually for 1, 5, 10, or 25 years, during which time the investor cannot access the funds. The longer the CD, the higher the interest rate. CDs are offered by banks, brokerage firms and independent salespeople, and are low-risk but offer very limited liquidity. CDs are most useful as a hedge against inflation, especially if your cash is just sitting around.

• Invest in bonds. A bond is basically debt assumed by a government or company to be paid back later with interest. Bonds are considered "fixed income" securities because the same income will be generated regardless of market conditions,.^[7] You'll need to know the par value (amount loaned), coupon rate (interest rate), and maturity rate (when the principal and interest must be paid back) of any bond you buy or sell. The safest, surest bond that investors can currently buy is a US Treasury note, or T-note.^[8]
• Here's how bonds work. Company ABC issues a 5-year bond worth $10,000 with a coupon rate of 3%. Investor XYZ buys the bond, giving his $10,000 to Company ABC. Usually every six months, Company ABC pays Investor XYZ 3% of $10,000, or $300, for the privilege of using her money. After five years and 10 payments of $300, Investor ABC gets her original loan of $10,000 back.