The money is available when you need it. The interest rates are better than the first two. The mutual funds may require an initial investment of a few thousand dollars. If you buy a 5 year bond and have to redeem it early, you may get more or less than your initial investment depending on how interest rates have changed since you purchased the bond. Some are very safe, some are incredily risky.
State bonds have tax advantages.
Generally, most money is won or lost on the change in the price of the stock. Over long periods of time, investments in stocks provide the highest return. Over short times, you can lose badly. Definitely, for people with guts and the people willing to stay in there through thick and thin. However, location is everything and your river-front house which has just been flooded won't be worth much unless some government takes pity on you.