When you have a specific amount in hand with you that you won’t need in the near future but you don’t want to park it for more than a year, then Short Term Investments are the way to go. There are a handful of options that can be explored to invest your money smartly for a short period of time.
If you are considering a Savings Bank Account for the same then stop thinking right away because Savings accounts only promise around 3-3.5% interest which is not very beneficial to you. But, you can surely consider one of these options for the same. Read on.
Short Term FD – One of the most reliable and safe options is that of a Short Term Fixed Deposit. You can choose to invest for three, six or twelve months and be sure of comparatively higher returns from them.
Mutual fund for Low Duration – Choose from the growth, dividend reinvestment or any other low duration option from the Mutual Fund sector for a promising return. It could be a riskier option than an FD but could yield better returns.
Post office – Another avenue to consider could be a one year Fixed Deposit with a Post Office. With a favorable addition to the principal amount, it is another avenue that can be considered as a safe investment option.
Please refrain from choosing an Equity, Long Term Mutual fund, Gold or any other long term avenue as the returns from these avenues are not guaranteed within the given short period of time. Considering these important pieces of advice, invest with care and proper knowledge of the fund. Happy investing!