There are a few options for people looking for safe alternatives to CDs.  Money market accounts and savings accounts, for example, are interest-bearing deposit accounts that can be found at banks and credit unions. Although those accounts typically don't offer rates as high as CDs, they provide more liquidity. Treasurys are also historically safe investments, as they are backed by the full faith and credit of the U.S. government, which means there’s virtually no risk of default. Treasury securities, ranging from one-month bills to 30-year bonds, are offered in increments of $100 and can be a good option for investors looking for a low-risk return. Government bond funds can also be a worthy alternative to CDs. These funds invest in debt securities issued and backed by the U.S. government, making them relatively safe, low-volatility investments. You won’t lose your principal on government bonds that you hold to maturity. In contrast, if you invest in bond funds there is potential downside if bond prices fall, as the value of the shares you purchased could decline as a result. All bonds have so-called inflation risk, which occurs when the rate of inflation is higher than the yield you’re earning on your bond.