Short-Term Investments: 10+ Best Options to Boost Your Returns

It can be challenging to know which short-term investments are the best for you, but there is no need to worry because this article will break down the differences between short-term investments and help you decide what’s best for your needs.

A short-term investment is an investment that you can easily change back into cash – such as a high-interest savings account or a money market account.

If you invest in places like the stock market, you should consider keeping your money in for at least five years. That is, so you benefit from the ups and downs of the stock market.

Considerations to Make Before Deciding on Short Term Investments

Are Short-Term Investments Profitable? Depending on the amount of time you put your money in, the type of investment you go for will determine your profitability. It’s good to consider carefully before jumping in, and if you are in doubt, it’s worth consulting a financial advisor who could help you invest your money.

Short-term investments that are less than two years are considered low risk and low reward. Potentially you can earn around 0.5%, which is a lot better than doing nothing with your money, so of course still worth doing something.

An online savings account can be a good option, especially under the year mark. They are low-risk and low reward options. But it delivers what it promises when you sign up to a guaranteed interest returns rate and can withdraw easily.

Money market accounts are short-term investment with the same risk as an online savings account but usually has higher interest rates.

A cash management account is a short-term investment with low risk. This short-term investment can be a great option depending on the amount of money you have for short-term investments. The downside is that you need a high balance to enter into this type of short-term investment.

A short-term bond fund is a short-term investment assuming that you want to invest in the short term until you need it.

Money market mutual funds (MMMFs) are short-term investments that allow you to invest in short-term debt products. There are various short-term debt products that money market mutual funds invest in, including commercial paper, certificates of deposit, and Treasury bills.

A certificate of deposit, or CD, is a short-term investment offered by a financial institution, such as a bank or credit union.

Peer-to-peer loans, also known as P-to-P loans, are short-term investments that allow you to invest in consumer and small business loans. When you invest in a peer-to-peer loan, you invest in the loan itself rather than the borrower.

If you are interested in investing in the stock market, consider services like Motley Fool Stock Advisor, which gives you recommended stock picks by professionals. They are also handy guides to help you avoid investing mistakes. They will also tell you when the right time to sell is.

If you are interested in investing in the stock market, consider services like Motley Fool Stock Advisor, which gives you recommended stock picks by professionals. They are also handy guides to help you avoid investing mistakes. They will also tell you when the right time to sell is.

Advantages and Disadvantages of Short Term Investments

The short-term investment is short-term savings account with a shorter than usual duration than other savings and checking accounts, making it an accessible short-term investment for many people. The disadvantages of short-term investments are that they usually have a lower rate than inflation, and short-term investment options may not be readily available to you depending on what type of account you open and where you live.

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