Best short term investment options to make money for short term goals


As soon as we become financially, our family and friends shower us with advice to save money. And we also cut off many of our bills, compromise on our wishes, and try to save a chunk of our monthly salary to save some money. However, by doing that will be able to make enough money someday? Well, maybe we will be able to save some money but that amount of money can also be gone in just one emergency. If you really want to multiply the money you get every month, you need to start investing as soon as possible. There are several short-term investment plans that you can put your money into and see it growing. Let us take a look at some of them.

Recurring Deposits

Recurring Deposits or RD is one of the best short-term investment plans that you can opt for without a second thought. It is totally risk-free and the tenure is from 6 months to 10 years. Usually, RD plans come with a lock-in period of one month. If you opt for premature closure of the account within the first month itself, you will get only the principal amount. In this case, you will not get any interest. As per the current rate of interest, for a period of 12 months, you will get a 6.5% yearly rate of interest on an RD account.

Money Market Account

This is popularly called a liquid fund. This account is designed in a way that will provide you with the security of capital along with returns. If you are looking for high returns, you must go for this. There is no lock-in period for this account and the maturity time limit is of 91 days. Money market Account comes with the least risk as compared to the other mutual funds. You can open this account for lesser than 13 months. As the return of this plan is concerned, it will neither be guaranteed to you nor be fixed. At present, the rate of interest offered by MMA is 7% per annum. 

Debt Instrument

If you are the kind of a person who cannot take the risk no matter what, then you can go for a debt instrument. The current rate of interest that you can enjoy by choosing this option is 10.5% per annum. The tenure of this plan is divided into three categories, which include Liquid Fund, Ultra-short duration fund, and Low-duration fund. The return that you can expect out of this option is much higher than many other choices in the market.

Bank Fixed Deposits

As you open a Fixed Deposits account, you have to put a lump-sum amount of money in the bank for a certain and fixed period. This is one of the safest options for short-term investment as you will get a fixed rate of interest. You will also get a guaranteed return. Talking about the tenure of an FD account, it can be 7 days, 14 days, 1 month, 45 days, and up to 10 years. Upon maturity, the deposits can be renewed, and you can even reinvest them. The current rate of interest provided by FD is 8%-9%. However, you have to invest for more than 1 year. Once you open this account, you do not have to worry about any risk as no matter how volatile the market is, the rate of interest for FD never changes.

While there are so many options, you can also consider buying a term insurance policy. This is certainly not one of the short-term plans but provides financial security to the family of the policyholder. If you want to know about term insurance policies and even come across some of the best such policies, you can visit the website of IIFL today.


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