I'm looking for safe places to put extra money that I save that have no risk but pay better than CDs. Is it really possible to get 10% return a year with no risk? http://www.iitm.com/safe_strategies_for_financial_freedom.htm "Two Banks that Pay 10%. How much does your bank pay for money itâs holding? 1%⦠2%⦠or 2.5% at best? Dr. Steve Suggerud will show you two banks that pay 10% or more. Thereâs no lengthy application process or complicated forms to fill out⦠just one phone call to make. " http://www.quadrigafund.com/en/fondsQuadrigaAG.asp Funds -> Gauranteed Products It looks like they are offering bonds which are offering 10-12% non-compounded yield. SuperFund Garant V, 9 Years and you double your money. "100% of the initial investment at maturity date" Are these bonds safe and guaranteed? If this is true, can't banks just invest your money into these 10% return vehicles and pay their customer 2% interest and cash in on the 8% difference? Thanks!
Savings and Loans investing in high risk investments is how the S&L crisis came about in the 80's. If you define "no risk" as the risk of investing in U.S. Treasury securities, than any higher return involves some risk. If it did not, then the borrower would not be paying more than Treasuries. Even agency debt and FNM / FRE debt yields slightly more than Treasuries because there is some risk that the U.S. government would not bail them out. But 10% a year - definately not risk free.