When you hear the term safe-haven investments, you may be thinking of gold, defensive stocks, or Treasury bills. But while these can offer substantial protection, they are not your only options.

Let’s take a look at other investments that can shield you in times of economic turmoil.

Series I Savings Bonds

Series I savings bonds are low-risk government securities designed to protect your purchasing power against inflation.

Like other Treasury securities, they are essentially loans you make to the government. And that’s where they derive their security, as they are fully backed by the faith and credit of the U.S. government.

I bonds earn interest based on a composite rate which is the combination of a fixed rate and an inflation rate.

The fixed rate stays the same for the life of the loan. The inflation rate changes twice a year based on movements in the Consumer Price Index for all urban consumers (CPI-U). The CPI-U is a common metric used to measure overall inflation in the U.S. economy.

I bonds currently have a composite rate of 3.98 percent until Oct. 31, 2025.

Interest on I bonds is earned monthly and compounded every six months or semiannually. They have maturities of 30 years: a 20-year initial maturity plus a 10-year extended period.

Unlike Treasury notes, or T-notes, I bonds don’t pay interest every six months. But you can redeem or cash in your bond after one year. However, you will face penalties if you cash it in prior to five years.

The interest on I bonds isn’t taxed at the state or local level. And it’s also exempt from federal taxes if used on qualifying educational expenses.

And while I bonds are meant to protect your purchasing power against inflation, your interest rate can drop to zero.

However, that’s as low as your interest rate can get. If the inflation rate is so negative that it takes away more than the entire fixed rate, the composite rate will stay at zero.

REITs

Real estate investment trusts (REITs) are companies that own income-generating real estate like apartment complexes, shopping malls and warehouses.

And as an investor in a REIT, you can benefit from the income the REIT earns. You can purchase shares of REITs through certain investing apps in the same way you’d buy shares of a stock or exchange-traded fund (ETF).

And like some stocks, REITs pay dividends. REITs legally must distribute at least 90 percent of their taxable income as dividends to shareholders.

But beyond passive income, REITs also may hedge against inflation.

Between the 1970s and the mid-2020s, REITs outperformed the stock market during 56 percent of 12-month periods with high inflation, and over 80 percent for the 12-month periods when inflation was continuing to rise, according to a study by the CAIA Association, a professional real-estate investor organization.

Moreover, REITs typically don’t have a positive correlation to stocks and bonds. This means REITs may offer downside protection when traditional asset classes like stocks dip.

Still, REITs carry risks like any investment. One is interest-rate risk.

Many REITs rely on debt to acquire property. And rising interest rates increase borrowing costs. This could in turn reduce profitability. And higher interest rates could make other interest-earning assets like bonds more attractive.

Money Market Funds

In times of high interest rates, money market funds may seem attractive to some investors.

A money market fund is a type of mutual fund that invests in cash and cash equivalents, as well as high-credit, short-term debt securities such as U.S. Treasuries.

Money market funds are designed to be safe spots to park your money for a short period of time while collecting more interest than deposits like traditional savings accounts.

Money market fund managers design these funds to keep their net asset value (NAV) at $1 per share. And excess earnings from interest are distributed to shareholders as dividends.

But on rare occasions, a money market fund’s NAV may dip below $1. This scenario is known as “Breaking the buck.”

Following the 2008 bankruptcy of Lehman Brothers, the Reserve Primary Fund broke the buck. This fund held millions of Lehman Brothers’ debt obligations. And the fund was eventually liquidated. However, the Securities and Exchange Commission followed with new rules to better govern money market funds.

The Bottom Line

During times of economic uncertainty, many investors turn to safe haven investments. Some popular ones include gold, defensive stocks, and Treasury securities like T-notes. But there are other options you may want to look into.

These include series I bonds, which are designed to protect your purchasing power against inflation. You also could consider REITs. These dividend-paying securities allow anyone to access the real estate market. And there are also money market funds. These are meant to preserve your capital through a highly-liquid mutual fund that pays dividends.

The Epoch Times copyright © 2025. The views and opinions expressed are those of the authors. They are meant for general informational purposes only and should not be construed or interpreted as a recommendation or solicitation. The Epoch Times does not provide investment, tax, legal, financial planning, estate planning, or any other personal finance advice. The Epoch Times holds no liability for the accuracy or timeliness of the information provided.