Short-Term Investments: 10+ Best Options to Boost Your Returns

Short-term investments are a great way to make money. But it can be challenging to know which short-term investments are the best for you.

This story will break down the differences between short-term investments and help you decide what’s best for your needs. We’ll discuss more than ten options that may be perfect for you!

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.

What are short-term investments?

These banks beat savings accounts easily. Plus they can make it automatic and round up change.

1. High-Yield Savings Accounts

This short-term investment is not as volatile as short-term stocks and has less risk of short-term bonds (depending on the company). The downside of this type of short-term investment is low returns.

2. Short-term bonds

Peer-to-peer loans, also known as P-to-P loans, are short-term investments that allow you to invest in consumer and small business loans. When you invest in a peer-to-peer loan, you invest in the loan itself rather than the borrower.

3. Peer-to-peer loans

A CD typically has a maturity of one year, but some CDs have maturities of two years or more.

4. Certificates of Deposit (CDs)

The stock market becomes a viable option if you can stretch over the five-year mark.

5. Stock Market

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