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Should you invest with a guaranteed return?

All things being equal (including the returns on investment), it would be better to choose an investment with a guaranteed return than one without. But most guaranteed investments don’t offer returns that beat inflation.

What are guaranteed returns?

Guaranteed returns are investment plans that promise a fixed rate of return to the investor regardless of market risk. An example is a certificate of deposit (CD), a contract with a bank to deposit money for a specified period for a guaranteed interest rate.

Are guaranteed returns a scam?

Unfortunately, guarantees don't work the same way when it comes to investing. If you expect a guaranteed return on your investment, your portfolio could end up underperforming (or even worse, you fall victim to an investment scam). Here’s what you need to know about guarantees when it comes to your investments.

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