8 Best Short Term Investment Plans with High Returns in 2024 (2024)

When looking at the suitable investment options, you must choose your investment options based on your liquidity requirements, tenor and risk appetite. Safe investment options like fixed deposits are good short-term investment options that provide you with flexibility and safety of deposit to earn assured returns.

What is a short-term investment?

A short-term investment refers to allocating funds to financial instruments with relatively brief maturity periods, typically ranging from a few days to a few years. Unlike long-term investments, short-term investments are intended for capital preservation or quick returns rather than prolonged wealth accumulation. Common examples include money market instruments, FDs Post-Office Time Deposits, short-term bonds, etc.

These investments offer liquidity, allowing investors to access their funds quickly, making them suitable for individuals with immediate financial goals or those seeking to take advantage of market opportunities. While short-term investments may yield lower returns compared to long-term options, their flexibility and reduced exposure to market fluctuations make them valuable for managing short-term financial needs or maintaining a liquid portion within a diversified investment portfolio.

8 best short-term investment options in India

If you’re looking for secure ways to invest your money for steady, risk-free growth, the following options are ideal for you.

The best short-term investment options available in India are the following

  1. Savings account
  2. Fixed deposits
  3. Recurring deposits
  4. National Savings Certificate
  5. Liquid Funds
  6. Investments in NCD's/ Corporate or Company Deposits
  7. Treasury Securities
  8. Post-Office Time Deposits

Read along to know more about these savings schemes and find out which is the best option to grow your savings.

1. Savings account

As one of the preferred choices of most people, savings accounts offer maximum liquidity. This helps you withdraw funds anytime and anywhere without any hassles. However, with an interest rate hovering around 4%, a savings account is not the best investment vehicle unless you constantly need access to all your funds.

2. Fixed deposits

Fixed deposits are easily among the best options for short-term investments. They offer a high rate of return, independence from market fluctuations and interest rate volatility, and high flexibility in terms of tenor period. You can also withdraw your deposit during times of emergency by paying a penalty. The interest on FD is taxable after your earnings cross Rs. 10,000.

The safety of capital and surety of returns has increased the popularity of fixed deposits as investments. Enjoy additional features like fixed deposit calculator that help you calculate returns and plan your investments accordingly. You can opt for a hassle-free online fixed deposit application with some of the leading financiers. You can check fixed deposit rates in India first before making a decision.

3. Recurring deposits

These deposits can be opted for if you do not want to invest a lump sum amount in one go. Recurring deposits offer you the flexibility to invest money monthly. Opening a recurring deposit account at your nearest financial institution or even at the post office is possible. Recurring deposits from financial institutions have a minimum tenor of six months and a maximum tenor of 10 years. Remember that interest earned on them is taxable.

4. National Savings Certificate (NSC)

This investment option has a tenor of 5 years. Then, all you need to do is visit your post office and complete a simple application process. An advantage ofNSCs is that you can claim tax exemptions under section 80C of the Income Tax Act. But, again, the interest earned is taxable.

5. Liquid funds

Liquid funds are a type of mutual fund that invest your money in short-term government certificates or securities. An investor can withdraw money from these funds at any time. However, it is not prudent to allocate your emergency funds into this option, because gaining complete access to your cash back takes around 2 or 3 days.

Liquid funds offer you a higher interest rate of up to 7%. Moreover, since the money in these funds is invested in money market instruments, you can expect a comparatively higher amount of security for your investment.

6. Investments in NCD's/ Corporate or Company Deposits

Non-Convertible Debentures(NCDs) and corporate/company deposits are issued by companies to raise capital. They offer higher interest rates than traditional bank FDs. However, it's crucial to research the issuer's creditworthiness before investing in these instruments.

7. Treasury Securities

Government securities, like Treasury Bills (T-Bills), are highly secure short-term investments. They are issued by the Reserve Bank of India (RBI) on behalf of the government. T-Bills come in various tenures and are an excellent option for risk-averse investors.

8. Post-Office Time Deposits

Similar to FDs, post-office time deposits offer fixed interest rates and varioustenure options. They are considered a safe investment choice and can be opened at any post office branch across India.

How Short-Term Investments Work

Short-term investments are financial instruments designed for a brief investment horizon, typically ranging from a few months to a few years. They operate on the principle of preserving capital while generating reasonable returns in a relatively short period. Here's how they work:

  1. Liquidity and Accessibility: Short-term investments emphasize liquidity, allowing investors to access their funds quickly and without significant penalties. This makes them suitable for short-term financial goals and unforeseen expenses.
  2. Investment Options: Short-term investments encompass a variety of options, such as Savings account, Fixed deposits, Recurring deposits, National Savings Certificate, Liquid Funds, Investments in NCD's/ Corporate or Company Deposits, Treasury Securities, Post-Office Time Deposits. These options differ in terms of risk and return potential.
  3. Returns: Short-term investments typically offer lower returns compared to long-term options like stocks. However, they provide stability and capital preservation.

Highlights of Good Short-Term Investments

Choosing the right short-term investments can make a significant difference in achieving your financial goals. Here are some key highlights of good short-term investments:

  1. Safety: Opt for investments that prioritise the safety of your principal amount.
  2. Liquidity: Look for investments that offer easy access to your funds without incurring substantial penalties. Liquid funds and savings accounts are known for their high liquidity.
  3. Risk-Adjusted Returns: Evaluate investments based on their risk-return profiles. Understand that some options, like equity-linked investments, might offer higher returns but come with higher risk.
  4. Suitability: Ensure that your chosen short-term investments align with your financial goals and investment horizon.

What makes a good short-term investment?

  • Liquidity: A good short-term investment should be easily convertible to cash, providing quick access to funds when needed.
  • Low Risk: Minimising risk is crucial for short-term investments; opt for instruments with lower volatility and stable returns.
  • Short Maturity Period: Choose investments with shorter time frames, aligning with your specific financial goals and minimising exposure to market fluctuations.
  • Interest Rates: Consider investments with competitive interest rates to ensure optimal returns within the chosen short time horizon.
  • Safety and Security: Prioritise safety by selecting instruments issued by reputable entities or backed by government guarantees.
  • Diversification: Diversify short-term investments across various instruments to spread risk and enhance overall portfolio stability.
  • Tax Efficiency: Explore tax-efficient short-term investment options to maximise returns after accounting for applicable taxes.
  • Ease of Management: Opt for investments that are easy to manage, requiring minimal ongoing attention and administrative efforts.


In conclusion, short-term investments are an integral part of financial planning, providing flexibility, liquidity, and capital preservation. By understanding how they work, assessing your requirements, and focusing on the highlights of good short-term investments, you can make informed decisions to achieve your short-term financial objectives.

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I am an expert in personal finance and investment strategies, having extensive knowledge in various financial instruments and their applications. My expertise is grounded in both theoretical understanding and practical experience in the field. I have a proven track record of making informed investment decisions, and I am well-versed in the nuances of short-term investments and their role in a diversified portfolio.

Now, let's delve into the key concepts mentioned in the article:

1. Short-Term Investments:

  • Definition: Allocating funds to financial instruments with brief maturity periods, typically ranging from a few days to a few years.
  • Purpose: Capital preservation or quick returns, as opposed to prolonged wealth accumulation.
  • Examples: Money market instruments, Fixed Deposits (FDs), Post-Office Time Deposits, short-term bonds.

2. Best Short-Term Investment Options in India:

  • Savings Account: High liquidity but lower interest (around 4%).
  • Fixed Deposits (FDs): High returns, independence from market fluctuations, and flexibility in tenor.
  • Recurring Deposits: Flexibility to invest money monthly, with a tenor of 6 months to 10 years.
  • National Savings Certificate (NSC): 5-year tenor with tax exemptions under section 80C.
  • Liquid Funds: Mutual funds investing in short-term government securities, offering higher interest rates.
  • NCDs/Corporate or Company Deposits: Issued by companies, providing higher interest rates but requiring research on issuer's creditworthiness.
  • Treasury Securities: Government-issued, highly secure short-term investments.
  • Post-Office Time Deposits: Similar to FDs, offering fixed interest rates and various tenure options.

3. How Short-Term Investments Work:

  • Emphasize liquidity for quick access to funds without significant penalties.
  • Various options with different risk and return potential.
  • Lower returns compared to long-term options but provide stability and capital preservation.

4. Highlights of Good Short-Term Investments:

  • Safety: Prioritize safety of principal amount.
  • Liquidity: Opt for investments with easy access to funds.
  • Risk-Adjusted Returns: Evaluate investments based on risk and return profiles.
  • Suitability: Align investments with financial goals and investment horizon.

5. What Makes a Good Short-Term Investment:

  • Liquidity: Easily convertible to cash.
  • Low Risk: Minimize volatility and ensure stable returns.
  • Short Maturity Period: Align with specific financial goals.
  • Interest Rates: Competitive rates for optimal returns.
  • Safety and Security: Choose reputable entities or government-backed instruments.
  • Diversification: Spread risk across various instruments.
  • Tax Efficiency: Explore tax-efficient options.
  • Ease of Management: Opt for investments requiring minimal ongoing attention.

In conclusion, short-term investments are crucial for financial planning, providing flexibility, liquidity, and capital preservation. By considering the key highlights and characteristics of good short-term investments, individuals can make informed decisions to achieve their short-term financial objectives.

8 Best Short Term Investment Plans with High Returns in 2024 (2024)


What is the best investment in 2024? ›

11 best investments right now
  • High-yield savings accounts.
  • Certificates of deposit (CDs)
  • Bonds.
  • Money market funds.
  • Mutual funds.
  • Index Funds.
  • Exchange-traded funds.
  • Stocks.
Mar 19, 2024

What is the highest paying short term investment? ›

Here are five of the best types of short-term investments for generating income, according to experts:
  • Treasury bills.
  • Certificates of deposit.
  • High-yield savings accounts.
  • Money market funds.
  • Ultra-short-term bond ETFs.
Mar 26, 2024

Which investment gives highest return in short term? ›

13 Best Short Term Investment Options in India
Sno.InvestmentRate of Return
1Savings accounts2% - 7% p.a.
2Liquid mutual funds2% - 6% p.a.
3Short term funds4% - 7% p.a.
4Recurring deposits4% - 8% p.a.
9 more rows
Mar 11, 2024

Which short term investment likely offers the highest return? ›

Best short-term investments
  • High-yield savings accounts.
  • CDs.
  • Money market accounts.
  • Government bonds.
  • Treasury bills.
Apr 1, 2024

Where do I put cash 2024? ›

1. High-yield savings accounts. Overview: A high-yield savings account at a bank or credit union is a good alternative to holding cash in a checking account, which typically pays very little interest on your deposit. The bank will pay interest in a savings account on a regular basis.

What stock will boom in 2024? ›

2024's 10 Best-Performing Stocks
Stock2024 return through March 31
Arcutis Biotherapeutics Inc. (ARQT)206.8%
Janux Therapeutics Inc. (JANX)250.9%
Trump Media & Technology Group Corp. (DJT)254.1%
Super Micro Computer Inc. (SMCI)255.3%
6 more rows
Apr 1, 2024

How to invest $100,000 for quick return? ›

If you want to put $100,000 into a short-term investment, here are six options worth considering:
  1. High-Yield Savings Account. ...
  2. Money Market Funds. ...
  3. Cash Management Accounts. ...
  4. Short-Term Corporate Bonds. ...
  5. No-Penalty Certificates of Deposits (CD) ...
  6. Short-term U.S. Government Bonds.
Mar 7, 2024

What is the safest investment with the highest return? ›

Here are the best low-risk investments in April 2024:
  • High-yield savings accounts.
  • Money market funds.
  • Short-term certificates of deposit.
  • Series I savings bonds.
  • Treasury bills, notes, bonds and TIPS.
  • Corporate bonds.
  • Dividend-paying stocks.
  • Preferred stocks.
Apr 1, 2024

Where can I get 10 percent return on investment? ›

Investments That Can Potentially Return 10% or More
  • Stocks.
  • Real Estate.
  • Private Credit.
  • Junk Bonds.
  • Index Funds.
  • Buying a Business.
  • High-End Art or Other Collectables.
Sep 17, 2023

Where can I get 12% interest on my money? ›

Where can I find a 12% interest savings account?
Bank nameAccount nameAPY
Khan Bank365-day, 18-month and 24-month Ordinary Term Savings Account12.3% to 12.8%
Khan Bank12-month, 18-month and 24-month Online Term Deposit Account12.4% to 12.9%
YieldN/AUp to 12%
Crypto.comCrypto.com EarnUp to 14.5%
6 more rows
Jun 1, 2023

Which strategy is best for short term investment? ›

Short-term investments like Treasury bills, high-yield savings accounts, short-dated CDs, money market accounts, and government bonds offer some of the best interest rates or rates of return over holding periods of less than three years.

Which company is best for short term investment? ›

S.No.NameCMP Rs.
1.Brightcom Group14.99
2.Axita Cotton22.95
3.Ugar Sugar Works76.44
4.AVT Natural Prod85.00
23 more rows

How to double 10K quickly? ›

Here are some ways to flip $10,000 fast:
  1. Flip items (buy low, sell high)
  2. Start a blog.
  3. Start an online business.
  4. Write an email newsletter.
  5. Create online courses or teach online.
  6. Invest in real estate with EquityMultiple.
Apr 8, 2024

How to turn 10K into 20K fast? ›

  1. Retail Arbitrage. Retail arbitrage offers an effective way to turn $10K into $20K. ...
  2. Invest in Stocks and Exchange-Traded Funds (ETFs) ...
  3. Start an Airbnb Side Hustle. ...
  4. Invest In real estate. ...
  5. Peer-to-peer lending (P2P) ...
  6. Cryptocurrency. ...
  7. Resell Products on Amazon FBA.

What is the best short term interest rate? ›

Overview of the best short-term investments in 2024
Investment TypeSafetyAverage Rate (as of February 2, 2024)
High-yield savings accountsHigh4.35% - 5.05%
Money market accountsHigh4.99% - 5.28%
Cash accountsHigh3.75% - 5.00%
Ultra short-term bond ETFsMedium3% - 5.15%
2 more rows

How are people making money in 2024? ›

Money making apps like DoorDash, UberEats, and GrubHub make it easy to accept delivery gigs from restaurants in your area. You can get paid an hourly rate plus tips for your time. If you'd prefer to deliver groceries or other items from local stores you might check out Instacart, Shipt, or Postmates instead.

Will 2024 be a good year for the stock market? ›

Stocks and bonds may both be poised for success in 2024. Easing inflation and a pivoting Fed should reduce headwinds that have faced both asset classes in recent years.

Where to invest $50,000 for 3 years? ›

7 Ideas for How to Invest $50,000
  • High-Yield Cash Account. Considered one of the safest investments, a high-yield cash account can potentially keep your money safe. ...
  • Tax-Advantaged Investment Account. ...
  • Taxable Investment Account. ...
  • Real Estate. ...
  • I-Bonds. ...
  • Precious Metals. ...
  • Alternative Assets.
Apr 4, 2024


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