Have you ever wondered what would be the best short-term investment option to invest in 2022? Or are you constantly checking the gold price today Haryana or whichever city you are from and are on the fence thinking whether to invest or not. Click here for more info. There are a lot of options out there and one may often feel confused about which one to choose. In this blog post, I have created a list of options that should interest all kinds of investors, from those who want to put in their entire life’s savings, to others who just want to put in their holiday bonus savings.
Recurring Deposit
Recurring Deposit (RD) is one of the most commonly used deposit instruments by retail investors in India. It was introduced to counter gold smuggling, offering tax incentives to encourage investment in government saving’s instruments. You will be thinking that a recurring deposit account is only for senior citizens, who are earning fixed income from their empty house. But it is not the case. You can open a recurring deposit account even if you earn a handsome salary and wish to invest in those monthly earnings.
Money Market
A money market account is usually a no-risk investment instrument, where the investor can get high liquidity as well as assured returns. These vehicles are available at many banks and credit unions. These accounts typically offer higher interest rates than traditional savings accounts and checking accounts, but lower interest rates than certificates of deposit (CDs). Money market accounts are also known by other names including money market deposit accounts, money funds and MMDA accounts. Due to their profits generating abilities, they are also called liquid funds.
Debt Instrument
Debt instruments are one of the best short term investments you can ever choose. Short term investments are quite popular as an easy way to make money with minimum risk. And debt instruments are the perfect example of this. There’s no worrying about market volatility because these debt instruments will always provide good returns in a relatively short period. One of the most popular types of debt instruments is mutual funds. With returns averaging up to 10.5% for less than three years, this is a great choice for most short term savings goals, including paying off a short term loan taken from your bank.
Fixed Deposit
A fixed deposit is also known as a term deposit, it is a bank deposit where the principal sum of money is deposited with the bank for a definite period usually ranging from days to months. The bank pays interest at the predetermined rate on the balance in your account at the end of the term. It’s kind of like you’re buying yourself some time and working with capital rather than investing your own money. This is not like gold where you constantly need to monitor today’s gold rate Nagpur or Jaipur in order to increase your gains.
Post office deposit
A post-office time deposit is a simple, safe and insured investment plan that offers assured returns on investments. The investor can make deposits for different durations and the money will surely be repaid along with interest on maturity or at the end of the deposit period
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