Which investment option is best for someone seeking low risk and guaranteed returns for at least a year?

Choosing certificates of deposit (CDs) is the best option for someone seeking low risk and guaranteed returns over a timeframe of at least a year because CDs are time deposit accounts offered by banks and credit unions that pay a fixed interest rate over a specified term. The principal amount invested in a CD is guaranteed, meaning that investors are not exposed to the market fluctuations that can affect other investment types.

CDs typically provide higher interest rates than standard savings accounts, making them an attractive choice for individuals looking for stability and assured returns. The terms of CDs can vary, but they often range from a few months to several years, with the understanding that withdrawing funds before maturity can result in penalties, thereby emphasizing the investment's low-risk characteristic.

In contrast, stocks can provide potential for high returns but come with significant market risk and volatility, which may not align with the preference for low-risk investments. Bonds also carry risk, particularly if they are not government-issued, as they can be subject to credit risk, even though they tend to be less volatile than stocks. Real estate typically requires more capital and involves market risks related to property values, not to mention the additional expenses of maintaining properties. Thus, for someone focused on minimizing risk and ensuring returns, CDs are the optimal