5 short-term investment options to consider Maria GallucciDecember 20, 2017Finance0 Comments Short-term investments such as fixed deposits are those which offer a maturity period ranging between 1-5 years and also called temporary investments. People who prefer such investment options are the ones who want to maintain a specific liquidity and also have enhanced the safety of capital in mind. When it comes to the return on investment (ROI), short-term investments offer a very competitive interest-rate. People invest in short-term investments with some specific purpose in mind. For example – if you want to buy a car in the near future, you may save for a temporary period of 1-5 years and accomplish your goal. Thus, in the same context, let’s provide you five short-term investment schemes so that you can take an informed decision. Indian finance industry offers various short-term investment plans nowadays such as: Saving Account As the name suggests, a saving account helps you save money with the highest liquidity amount laced with fabulous security for your wealth. The only issue is that a saving account offers a return on interest between 4-6% as per the tenor and deposited amount. Gold Investment Want to avail market fluctuations and stability even during inflation and banking crises? Invest in gold because its demand and value have been on the rise over many years. Mind it; you can grab a massive 23.5% ROI on gold. If you have some saving, invest in gold and be sure to reap a bigger share of profits. National Saving Certificate The National Saving Certificate allows a fixed-term period of 5 years offered by the Postal Department of India and is a highly beneficial scheme. Why? It’s because a maturity amount is not taxable. However, you should note that the interest amount is not free from tax. Bonds Because of their risk-free nature and high liquidity option, bonds have gained immense popularity these days. They are nothing but funds which you can offer in the form of loan or government or the corporations. Your principal amount is returned to you after your maturity period coupled with a specific interest rate per annum. Fixed Deposits When it comes to short-term investment, fixed-deposits are one of the most profitable and safest options. They are laced with a pack of advantages which also includes credibility and a higher stability, the option of an online application, flexible tenor periods ranging from 12-60 months and most essentially, and a bountiful return on your savings. You can grab best-fixed deposit rates or ROI or FD return on your investment ranging between 7.85%-8.10% as per your membership status with the lender. You can start off your FD investment with a minimum Rs.25,000 and earn a good fixed deposit interest rate. Nowadays, leading lenders are offering highest FD rate which you can make the most of and fulfil a short-term investment as per your wish. A fixed deposit has also become popular due to its higher fixed deposit interest rate. As a result, leading online lenders have started to provide the facility of FD calculator. With the help of an online FD calculator, it becomes clear as to how much ROI a person will earn on his/her investment. Talking of leading fixed deposit lenders, NBFCs offers highest FD rate these days and could be a recommendation if you are looking for a profitable short-term investment. The Bottom Line Now that you know the leading and most profitable short-term investment options, it is the right time to invest in one such as a fixed deposit and kick off a healthy saving. All the best for your short-term investment ventures!