Short term investment plans are necessary to receive a return in just a couple of years. As an investor, there may come a time when you need money immediately. Perhaps that time has come. Furthermore, you may not want to invest your money for a long period of time. If this is the case, you need a short term investment plan that beats inflation. Here, you will find the best short term investment plans for consistent growth.
High-Yield Savings Accounts
One of the best short term investment plans is a high-yield savings account. This type of savings account is not too different from a regular business savings account. The main distinction is that you are able to earn cash in a high-yield savings account. As the account holder, you have no risk with this type of plan. You can also implement the plan rather easily. First, look for a bank with a high APY. Then, pay that bank a visit to open the account. Lastly, deposit money into the account. Since interest is earned monthly, you can get the money you need in as little as a year. High-yield savings accounts are a great option for short term investment plans.
Certificates Of Deposit
Another great option for short term investment plans is a certificate of deposit. However, there is more of a risk with this type of plan. You have the opportunity to invest in a shorter term or a longer one. Options range from 6 months to over 5 years. While this flexibility can seem advantageous, it has negative elements as well. If you cash in a certificate of deposit before it matures, you may have to pay a fee. Therefore, you should keep your money deposited until it matures. With this in mind, you must carefully decide how long you want your term to be. Determine when you need your money by and work from there. If done correctly, certificates of deposit come with many benefits. For example, they are FDIC insured. They also offer higher interest rates the longer you make your term. This type of plan is great for short term investments if implemented well.
Peer-to-peer loans is a different, but profitable short term investment plan. Unlike other types of plans, peer-to-peer lending occurs without traditional banks. Not to mention, majority of the plan takes place online. If you cannot find good short term loans through your bank, look to peer-to-peer loans. Through peer-to-peer loan websites, you will be introduced to other investors as well as borrows. On the sites, borrowers are able to borrow from investors. Investors, like yourself, lend to borrowers at high rates of return. With this in mind, it can be a great option for your short term investments.
Cash Back Rewards Offers
Short term investment plans can also be made through cash back rewards offers. You may have been under the impression that credit cards suck up your money. However, with this investment plan, they can make you money quickly. Additionally, little effort is required of you as an investor. Your earnings will not be determined by how much you invest. Instead, they will depend on how much you spend. The key to finding success through this short term investment plan is to buy necessities. Use your credit card on your groceries and your gas. Then, pay it all off immediately. This will avoid you interest and allow your earnings to grow. Some banks offer as low as 2% cash back cards. Look for cards that offer around 6% cash back. If done properly, cash back rewards offers make for one of the best short term investment plans.
Brokerage Money Market Mutual Funds
Lastly, consider brokerage money market mutual funds. These funds are low-risk. The government bonds that they hold mature in as little to 30 days. In just one to three months, bonds can be mature. With brokerage money market mutual funds, your savings goes into a fund that is arranged as a trust fund. You are also able to make fixed-income investments. Moreover, you can redeem such investments whenever you would like. This type of plan does not provide as high of a return rate as others on this list. However, it is one of the safest short term investment plans, making it one of the best.
Good short term investment plans are easier to find than you may have thought. A high-yield savings account is one option. Another option is a certificate of deposit. Peer-to-peer loans are worth looking into for short term investing. Similarly, cash back rewards offers are also worth considering. Brokerage money market mutual funds can also promote money growth efficiently. You are now aware of the best short term investment plans to get money fast.