Which is the good and safest way to invest money in USA apart from savings bank?

Safe is a pretty relative term. There are a variety of options available for anyone. Savings accounts typically yield a low interest rate however hsbcdirect.com and emigrantdirect.com both pay around 5% for a savings account and are FDIC insured. That is the safest I know. Outside of that the top three safest options would be: 1. money market account / CD 2. bonds 3. S&P 500 index funds

If you don't need the money for at least 5 years check out an S&P Index fund from either Vangaurd or Fidelity.

Good luck and consult a financial planner if you have more questions.

Certificates of Deposit, they now pay more then 5% interest, and are a very safe investment.

Checkl with your bank for government savings bonds, they take about 5 years to "ripen" and then they are like a check or money order, you can choose different options on how you want to pay money into them over a different amount of years.

It has been long held that any note backed by "the full faith and credit of the United States" are the safest of investments, within the US.

While I personally don't think that T-bills, T-notes, or T-bonds are probably the best way to invest, as you can probably get a better interest rate from a high yield savings account, they *ARE* the safest.

Depending on your age and risk tolerance, however, there are much better investments. After all, what's safer than a higher average return over time? Would you be willing to accept a small amount of risk for say... 8-10% average over the next 20 years by investing in a mutual fund with a good track record, or would you be happier investing at 5% in a high yield savings account?

$1000 @ 5% for 20yrs = $2653
$1000 @ 10% for 20 yrs = $6727 (2.54x the 5% return!)

If you have a long time, look into stocks, real estate, and any other type of investments you can learn about. If you are risk averse, try looking into TIPS (Treasury Inflation Protected Securities)-- they are issued by the US Govt.

Buy goods and services from a USA citizen that you know and trust.

Lend money to a USA citizen that you know and trust.