Short-Term Investments: 10+ Best Options to Boost Your Returns
Are short-term investments profitable? Short-term investments are a great way to make money.
What are Short-term Investments?
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.
Considerations to Make Before Deciding on Short Term Investments
How Long do you plan to keep your money in a short-term investment? – This is key to knowing the number of years that will help you decide the right risk factor and account that is right for you.
Are Short-Term Investments Profitable?
Short-term investments are profitable, especially if you consider the alternative of not doing anything with your money short term even if you decide to put your money in a savings account with a low-interest rate that is still better than earning no interest.
Best Short Term Investments
Time is a crucial factor in deciding the best short-term investment. Based on the time you have to invest, see below which option could be right for you.
Less Than Two Years
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.
Online Savings Account
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.
High Yield Savings Account
There are many choices, and online-only companies like Chip have been beating some of the traditional banks, so make sure you do your research and compare all options.
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