7 Best Places To Keep Your Money During a Recession

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Wondering what to do with your money when the economy takes a downturn? Here are seven smart places to keep your funds safe and even see some growth during a recession.

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1. High Yield Savings Accounts

These are like your usual savings accounts but better because they pay you more interest. That means you make more money just by keeping your savings in the bank. Make sure the bank is insured by the FDIC, which means your money is safe even if the bank has problems.

2. Treasury Securities

Treasury securities, like bonds and bills, are super safe because they’re backed by the government. People buy more of these when the economy looks shaky because they’re a safe bet, even if they don’t always pay a lot.

3. Money Market Funds

If you want to earn a bit more than what a regular savings account offers, check out money market funds. They invest in things like government bonds and are pretty safe, with a bit of extra cash possible compared to regular savings.

4. Gold and Other Precious Metals

Gold and metals like silver can be good to own when things get rough economically. They usually hold their value and can even be worth more when other investments are down. They don’t make money like other investments, but they can be a safe place to park your cash.

5. Dividend-Paying Stocks

Some stocks pay dividends, which means you get a little money regularly, just for owning the stock. Look for companies that have been around for a long time and are in essential industries like utilities. Even during bad times, these companies can provide a steady income.

6. Certificates of Deposit

CDs are time deposits at banks that offer a fixed interest rate over a specific period. They’re safer than stocks because they promise a set return on your investment, as long as you can leave your money in for the agreed period.

7. Real Estate Investment Trusts

REITs are companies that own and usually operate income-producing real estate. They’re a way to invest in real estate without having to buy property yourself. They can offer stable payments, similar to dividends, and are particularly worth considering if the housing market remains strong.

Final Take

Where you decide to keep your money during a recession should match your need for security, access to your cash, and your overall financial goals. Each option has its strengths, so consider a mix that feels right for you. It’s always a good idea to talk to a financial advisor to help you make the best choices for your situation.

Editor’s note: This article was produced via automated technology and then fine-tuned and verified for accuracy by a member of GOBankingRates’ editorial team.

This article originally appeared on GOBankingRates.com: 7 Best Places To Keep Your Money During a Recession