The 3 best risk-free investments to know

 Aaah the investments! You want to invest your money to make it grow but the fear of losing it is holding you back a little.

Between risk-free investments and quick returns, we all dream of having our cake and eating it too, and that's normal.

In the vast world of finance, it is important to distinguish between different things: profitability and security.

Especially that leaving your money in a savings account is not necessarily secure because it loses value every year, but we will talk about that later. The notion of security is to be questioned according to your means. We won't keep you waiting too long, we'll explain everything right after.

What are the best risk-free investments to make in 2022? Is it possible to make a lot of money without too much risk of loss? How do you say bye-bye to the fear of investing?

Let's take a tour of the wonderful world of investing.

What is a risk-free investment?

Before we look at the best risk-free investments you can make, we need to start defining what it is.

First, a risk-free investment is one that seeks to limit the risk of losing the money you save as much as possible. Isn't that sweet?

But be careful, it doesn't mean that there is zero risk of loss. It's impossible to guarantee that, just like it's impossible to certify that your last favorite sweater will still be in your heart in 3 years.

All we can assure you is that a risk-free investment will yield little return. And that's normal, the more you play with fire, the more likely you are to get burned. But the more likely you will have a nice crackling fire that will warm you up.

In short, you will have understood, it is difficult to have your cake and eat it too.

Why invest your money without risk?

It's hard to invest in real estate or the stock market if you don't have a little money set aside for life's unexpected events.

Spilling a cocktail on your computer, it happens (true story). And that's when you're glad you have some savings.

As you can see, risk-free investments serve two purposes:

  • To build up precautionary savings 💰 to live one's best life without fear of uncertain bills that may fall ( EDF making an adjustment. We all go through this.)
  • To realize your short and medium-term projects 💭 (up to 5 years) like buying a car, planning a big trip around the world, and dreaming big, for example.

The goal is to put money aside that is available when you really need it. This type of investment is not about making your interest grow like crazy.

There is no such thing as a risk-free investment that pays big dividends

Promises that sell (too many) dreams are a sign of scams.

It's often too good to be true and if it were true, we'd all be in the Bahamas sipping a cocktail (while avoiding spilling it on our computer).

You have to wonder if you're sold a risk-free investment that pays more than 1.5%.

That's why you should be wary of ads that promise to tell you about "risk-free investments" that will make you rich.

There are 3 types of risk-free investments

There is no such thing as a good or bad risk-free investment. There are simply different types. It's up to you to see which ones suit you and are the best for you. Beauty is subjective, and this is no different.

Just be aware that risk-free bank investments are the same in all banks because the government sets the rules.

01 Bankbooks

The bankbooks are the first ones that we think about when we start to put some money aside.

Here is a small tour of the passbooks to see the differences and the specificities.

The Livret A

It is the cousin who arrives at each family meal. He is part of the decor and we hear about him all the time. We know we have to get closer to him because he is famous, but we don't know exactly why.

Accessible to everyone, the Livret A allows you to withdraw your money at any time and makes you benefit from an advantageous tax system. Currently, in 2022, its rate is 1%. It's not crazy but it's the best investment if you want to save in the short term.

The Livret Jeune

The Livret Jeune is aptly named as it is only available to 12-25-year-olds. Its ceiling is 1 600€ and its rate of return depends on the banks.

It is the one that puts the foot in the door when you start saving a little money (thanks to summer jobs and birthdays with a little money).


Also known as the Livret de Développement Durable et Solidaire, the LDDS is a bit like the Livret A because it also offers, since 2022, a fixed rate of 1%. Except that, unlike the Livret A, its ceiling is 12,000€.


Ah, the famous PEL that we say we break every time we go into a bookstore / Sephora / buy a round of drinks. You choose.

Also called Plan Epargne Logement, it's a blocked savings fund and you can't make an immediate withdrawal. Basically, this money is not available immediately and is subject to social security deductions from the first year of opening.

You have to put in at least 540€ per year and make monthly, quarterly, or half-yearly transfers.


Less known than its cousin, the Compte Epargne Logement allows you to have money available when you need it. The minimum deposit is 300€ and then it's up to you to make payments.


The Livret d'Epargne Populaire is accessible only to modest incomes with a ceiling of 7 000€ and a current rate of 2.2%.

02. Term accounts (CAT)

Less famous than the classic bank booklets, the term accounts with very interesting rates are becoming increasingly rare. That's why we look for them like the white wolf.

CATs allow you to have investments with an increased remuneration that is known in advance. Its ceiling is higher than for classic passbooks and the time to get your funds back is several days.

But you have to commit to a more or less long period of time or you will be penalized on the rate of return. As usual, the longer you commit yourself, the better your CAT rate will be.

03. Euro funds in life insurance

Be careful, life insurance allows you to invest your money in two types of funds:

  • the funds in euros with a guaranteed remuneration but which yield little;
  • the units of account where there is a higher risk but which can yield more.

With this kind of risk-free investment, you have a part of your life insurance that is secure.

And then the tax advantages with this type of investment, or the Plan Epargne Retraite, are not negligible: you do not pay taxes until you withdraw your money and only on the amounts earned (so not on the entire withdrawal).

If you are looking for life insurance where the euro fund was interesting in 2021 and which continues in the same way in 2022, you can turn to Linxea Avenir.

Even with a risk-free investment, you lose money

Yes, it's hard to believe. But that's because of inflation. Basically, every year, the cost of living increases little by little. But the fixed rate of return on our various passbooks does not grow, the money left on it cannot compensate for inflation.

We often think that we can't afford to invest, but in fact, we have to ask ourselves the question differently. Can we afford not to invest and therefore lose money every year and end up in a worse situation than before? It is an invisible impoverishment.

"The question is quickly answered.''

Why you shouldn't be (too) afraid to invest

Anything unknown can be scary, and that's why different investments can be seen as very risky. But we give you some reasons to invest without taking too much risk either and know to be (too) apprehensive.

Investing in real estate

If you don't know much about the stock market yet, you should know that this is not the only solution. You can also very well move towards investments in real estate. The risks do not necessarily concern the direct loss of money (even if it is possible), but they exist:

  • unpaid rents;
  • deterioration of the property;
  • a bad investment which makes your property rent badly or lose value;
  • high management costs if you delegate

Investing in the stock market

If you want to invest for higher returns, it can be interesting to think about investing in the stock market.

Yes, it can be scary at first. But it's important to understand that you can invest according to your situation and risk level. Of course, it is important to get trained beforehand. We have prepared a guide to help you get started.

If the stock market is scary, it's because we often confuse "risk" and "volatility".

When we talk about volatility, we're not referring to your latest crush that ghosts all over the place before coming back and then leaving again. No. Volatility in the stock market is the fact that stocks go up and down regularly, and very sharply.

That's why it's important to diversify your stocks. For that, trackers become your best friends (the famous ETFs). Also called index funds, they are funds listed on the stock exchange that try to replicate the performance of a stock index.

So what's the difference between volatility and risk when it comes to stock market investments? It's the time horizon over which you want to invest your money.

Basically, if you invest for the short term, volatility is high and you will feel a lot of the ups and downs that your stocks may go through. In the long term, if you diversify well, the risk is much lower.

In summary

As you can see, it's hard to make money without taking risks. Even if there are various interesting risk-free investments, they are not the ones that will allow you to make interesting gains on interest.

We can never repeat it enough, the most important thing is to diversify and question the notion of risk.

It's all a question of balance, but the risks taken in certain investments that are a little less certain can be compensated for by the guaranteed capital in the best risk-free investments put in place.

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The purpose of BusinessClicksis not to give you advice, and even less to tell you what to do.

The information we give is only informative and general: it is then your own responsibility to decide if the information presented is relevant to your own situation.

We do not give personalized advice. To be accompanied according to your specific situation, consult a financial advisor.

Investing involves a risk of loss.

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