BEST SHORT-TERM INVESTMENT OPTION: Apart from the typical checking and savings accounts, there are other profitable options for investment. If you are looking to save up money to buy a house or a car, you should consider investing in any short-term investment venture instead of putting away money in a savings account.

Short-term investment options are “marketable securities” or “temporary investments.” Investors choose short-term investments with a limited period to invest their money. With short-term investment options, you can invest into ventures that would convert your investments to cash within 3-5yrs.

Even if you have invested in only long-term investment options, you can diversify your portfolio by investing in short-term investment options. By so doing, your investment portfolio becomes more grounded. A short-term investment could either be high risks with low yields, high risks with high profits, low risks with low yields, or no risks with minimal yields.

Hence, the short-term investment option you select must align with your investment goals and risk-tolerance level. In this article, some short-term investment options are discussed for your consideration.

High-yield savings accounts 

The difference between a high-yield savings account and a regular one is in the magnitude of their returns. As implied by the name, High-yield savings accounts is a secured form of investment that offers high-interest rates. The only risk involved in a high-yield savings accounts is inflation. Investors that wish to leave their funds in the account for extended periods risk losing money due to a drop in value. Still, it is highly recommended as a short-term investment option. Consider all their deductibles before settling on a conventional or online bank to patronize. Some banks charge so much for account maintenance and ATM fees. It is advisable to pick a bank that charges less or not.

Money market accounts

Money market accounts are a type of bank deposit account. The only difference is that they pay higher interest rates than the conventional savings account or checking account. However, most money market accounts have a minimum amount that is permitted. Even though the federal government has imposed laws restricting withdrawal frequency, they are highly liquid.

The risk involved most time in using a money market account is that most of them are not FDIC insured. That means the accounts are not protected from loss. In this vein, always invest with money market accounts that are FDIC insured.



Fixed deposits

Fixed deposit accounts is an old investment option, but it is still considered one of the best short-term investment option. Fixed deposits are independent of all market fluctuations and interest rate volatility, offer flexible tenor periods and provide high capital returns. The funds in a fixed deposit account cannot be withdrawn whenever you please. However, you are granted access to the funds in times of emergency by paying the penalty.

Before investing in a fixed deposit account, you don’t need to consider your risk tolerance level because your capital and gains are protected. Some banks offer additional features like the fixed deposit calculator that helps you calculate returns on your investments. Instead of going through the stress of signing papers at the bank, you can opt for an online fixed deposit platform like BankBazaar and Iqbroker.


Cryptocurrency can serve as either a long-term or a short-term investment option depending on the investor. Since its inception, cryptocurrency has become a top investment option for several investors despite the risks. Instead of putting your money in a savings account that yields little or no profit, you can purchase some cryptocurrencies or NFTs. Although the crypto market is not always booming, several coins still have a lot of potentials to yield robust returns.

Treasury bills

The US government issues a treasury bill (T-bill). They are available in three different forms: T-bills, T-bonds, and T-notes. The risk is minimal, and they offer safe yield supported by the AAA credit rating system of the federal government. Depending on your needs, you can buy particular financial securities rather than a government bond fund. Treasury bills can be traded on any day the market is open because they are highly liquid.

Bottom line 

Short-term investments are great investment options for both individuals and corporations. Apart from the five options listed above, you can research other options as there are many options available. Even more, you can introduce short-term investment options to your investment portfolio if you’re looking to rebalance your portfolio. If you are looking to fund a project in the nearest future, try these options to generate funds.

Kindly visit croft financial for more information on investment options and financial advice.

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