A short-term investment is an investment that you can easily change back into cash – such as a high-interest savings account or a money market account.
How long do you plan to keep your money in a short-term investment? – This is key to knowing the number of years that will help you decide the right risk factor and account that is right for you.
Depending on the amount of time you put your money in, the type of investment you go for will determine your profitability.
Yes, short-term investments are profitable, especially if you consider the alternative of not doing anything with your money short term even if you decide to put your money in a savings account with a low-interest rate that is still better than earning no interest.
Time is a crucial factor in deciding the best short-term investment. Based on the time you have to invest, see below which option could be right for you.