Managing our money is often a task that provokes doubts and, in many cases, a certain fear of losing it. Precisely for this reason, the search for risk-free investments It has become one of the main concerns for those who want to grow their assets without facing setbacks. Although finding a completely risk-free investment option is, in practice, impossible, there are alternatives that minimize uncertainty and protect capital, especially if approached with clear information and strategies.
In this article, we'll break down, step by step and with an objective and realistic approach, what risk-free investing really means, what the best options are in Spain in 2025, and what aspects you should consider before taking the plunge. We'll analyze everything you need to know to make well-informed decisions, from the crucial role of inflation to the differences between deposits, bonds, funds, and other products. Our goal is to provide you with a comprehensive and useful overview so you know where and how to invest your money with the lowest possible risk.
Does risk-free investing really exist?
One of the first concepts that should be clear is that, in the financial world, the zero risk does not existWhen we talk about "risk-free investments," we almost always refer to products with a low degree of uncertainty or minimal chances of losing the initial capital, such as insured bank deposits or government bonds.
El investment risk It is fundamentally defined by the variability of returns of financial assets over time. This is called volatility. But when we combine several assets in the same portfolio, we must also consider how they move relative to each other, which in technical terms is known as "covariance." If all the assets rise and fall at the same time, the real risk of the whole increases. The key is diversify your portfolio to distribute the chances of loss.
Why the saver's greatest enemy is not risk, but inflation
Putting money in a checking account, savings account, or demand deposit is generally considered the safest option. Large banks in Spain and other countries tend to offer very low interest rates for this type of product, often below 2% per year. Although the deposited money is protected by the Deposit Guarantee Fund, which in Spain covers up to 100.000 euros per holder and entity, this type of security comes with an often overlooked consequence: the loss of purchasing power caused by inflation.
Inflation is the sustained increase in the general price level. For example, between 2014 and 2024, cumulative inflation in Mexico approached 59%, and in Spain, although somewhat lower, it is still significant. If you simply leave your money in the bank earning 2% annual interest, after 10 years, even if the balance is nominally higher, your purchasing power will have decreased significantly. According to real-life simulations, with 10.000 euros invested at 2% annually for a decade, when the figure is adjusted for inflation, instead of having more money, you have less. 23% less purchasing power than at the beginning.
It is important to highlight that one should not only look for safe investments, but products that at least match or exceed the level of inflation, so that the value of your money doesn't erode over time.
Keys to minimizing risk in your investments
- DiversificationDon't concentrate all your money in a single product, bank, or asset. The more diverse assets you have (stocks, bonds, deposits, funds, etc. from different geographies and sectors), the less dependent you'll be on what happens to just one of them.
- RegularityInvesting little by little, month by month or quarter by quarter, allows you to offset the ups and downs of the markets and reduces the impact of entering at the worst possible time.
- Temporal horizonTime is your greatest ally. The longer your investment horizon, the lower the volatility and the easier it will be to overcome temporary fluctuations.
- Investor profileIt's essential to know your risk tolerance. Not everyone tolerates the same uncertainty or has the same liquidity needs. If you're conservative, prioritize products with guaranteed capital.
- Liquidity and emergency fundBefore investing, be sure to set aside an emergency amount (ideally, three months' worth of your basic expenses) in affordable products with no withdrawal penalties.
How much money should you invest and for how long?
As most experts recommend, The amount to invest should never compromise your basic needs or your emergency cushion.That is, only invest money you won't need in the short term (at least next year). The time horizon is also crucial: to achieve profitability without taking on setbacks, it's ideal to think about scenarios of 3 to 10 years, although there are alternatives for shorter periods, which we'll discuss below.
Top Low-Risk Investment Options in 2025
1. Bank deposits
Term deposits remain the preferred option for many conservative savers. They work simply: you deposit a sum of money into the bank for a specific period of time, and at the end of the term, you receive the principal plus the agreed-upon interest.
At present, Some banks and platforms offer deposits with returns close to 2% APR for terms of 1 to 2 years. For example:
- Cetelem Bank – 24-month deposit at 2,5% APR: For an investment of €50.000, net interest would amount to approximately €2.053.
- Finantia Bank – Deposits for new contributions from €50.000 to €500.000, with a 2,35% APR, generating approximately €1.926 net over two years.
- MiraltaBank – 2-year deposit with a 2,23% APR, contributing approximately €1.826 net after taxes.
These deposits are protected by the deposit guarantee fund up to €100.000 per holder. It's important to review the cancellation conditions (some are non-cancellable) and any fees that may apply after the initial period.
2. Treasury bonds and bills
On Spanish government bonds and treasure letters They are another reliable and widely used alternative. They are public debt securities issued by the State, with varying maturities and yields. Although they are not covered by the deposit guarantee fund, their risk is extremely low given the State's solvency (although, in theory, no issuer is 100% infallible).
3. Savings insurance
Some insurers offer products such as Savings Plus or similar, which combine guaranteed returns with greater redemption flexibility than a traditional deposit. However, it should be noted that these products are only backed by the solvency of the insurer, since are not protected by the deposit guarantee fund. Therefore, it is advisable to be well informed before hiring.
4. Conservative and liquid investment funds
Although investment funds can never guarantee profitability or capital, there are very safe alternatives such as monetary funds or daily liquidity, managed by professionals and investing in very low-risk assets (short-term deposits, public debt, etc.).
5. Real estate and housing as an investment
Investing in real estate has always been a popular option, especially in Spain. However, it's important to remember that, although real estate is perceived as safe, Real estate investment also carries risks: You may face periods of unrented property, unexpected price drops, or unforeseen maintenance costs.
6. Solid company stocks and ETFs
If you can accept some variability in exchange for beating inflation, stocks in large international companies or ETFs (exchange-traded funds that track global indices) are an attractive option. The risk is moderate over the long term, and with good diversification, declines usually even out over time.
Tools and tips to help you choose the best option without risk
- Always compare the conditions of deposits, insurance, or funds before signing up. There are online comparators that allow you to filter by term, amount, profitability, and guarantees.
- Seek professional adviceIf you have questions or no prior experience, it's essential to consult with an expert or manager. Many banks offer free advice to clients, and there are independent platforms with good reviews.
- Keep commissions in mind and the taxation of each product. Profits are taxed differently depending on the product and the term, so be informed before investing.
- Put the time horizon in your favorThe longer you can keep your investment untouched, the more you can take advantage of compound interest and ride out temporary market ups and downs.
- Define realistic goalsSet clear goals regarding expected returns and timeframes. Don't chase the big time, but rather protect your money and achieve a stable return that outpaces inflation.
Frequently asked questions about safe investments
Is it always possible to recover money invested in low-risk products? If you invest in protected bank deposits or government bonds and maintain the agreed-upon term, your return is practically guaranteed. However, products such as savings funds or insurance depend on the issuing institution and market performance, so check the terms and conditions carefully.
Is it a good idea to invest all my money in one product? No. Diversification is the best way to minimize risk. Combine several alternatives according to your profile, needs, and goals.
What do I do if I need the money before maturity? Some products allow early cancellation, although they usually carry a penalty of reduced interest rates or, in some cases, a return of the amount without any return. Others, such as some non-cancellable deposits, require you to keep the money for the entire term. Be sure to check this before making your decision.
Are safe investments suitable for all investor profiles? Most are suitable for conservative profiles, but if you're looking for high returns, you'll have to accept a certain amount of risk. "Risk-free" investments generally offer adjusted returns, below those of more variable products.
The financial world offers various options for protecting and growing your money without exposing it to unnecessary risks, as long as you maintain prudence and have the right information as the pillars of your investment strategy.
