You may want to check out these 5 best investments for the short term if you want to give your savings a boost. It is recommended that you do not add a lot of risk to short-term investments because you could lose your money. Over long periods of time, risks tend to offer higher returns, but since short-term investments do not have the luxury of time, you should focus on avoiding risks.
- Money market accounts. Money market accounts are one of the best investments for the short term because they are associated with high interest rates. Money market accounts operate like savings accounts, but their account minimums are usually higher. Keep in mind that you will only be allowed to write checks or withdraw funds a certain number of times each month with this kind of account.
- Certificate of deposit. A certificate of deposit, or CD, offers a higher rate of return than a savings account. If you want a short-term investment, you can open a three-month or six-month CD. Shop around and compare CD rates with different banks and credit unions until you find a fantastic deal. Please note that if you close a CD out before the term expires, you will have to pay a fee. CDs are one of the best investments for the short term.
- Treasury notes and bills. Treasury notes and bills are some of the best investments for the short term. You can place your money in the government in the form of treasury notes or treasury bills. Notes take two to ten years to mature while bills take less than one year. Treasury notes and bills are one of the safest short-term investments.
- Corporate bonds. Corporate bonds are one of the best investments for the short term. You can purchase debt that is issued by companies in the form of corporate bonds. Corporate bonds offer high interest rates, but investors run the risk of a business failing.
- High-yield online savings accounts. High-yield online savings accounts are one of the best investments for the short term because they usually offer higher interest rates than traditional savings accounts. You can open this kind of account online, so compare rates with several financial institutions before you make a move.
These are some of the best investments for the short term. These investments offer a higher rate of return than regular savings accounts, so keep them in mind if you want to get more for your money.