Temporary investments that offer a maturity period ranging between 1 to 5 years are called short-term investments. Such investments are typically preferred by those looking to maintain a certain amount of liquidity, and also to ensure increased safety of capital.

In terms of rate of return, short term investments offer a very competitive interest rate. Usually, these investments are made with a specific purpose in mind; for example, if you have your eye on a new car that is set to release in a couple of years, but your current investment plans are not yielding enough returns to afford the down payment on the car when the time comes. In this instant, it is more prudent to go for a short-term investment and reap the benefits of higher returns and faster maturity periods.

Another example is to prepare for an unavoidable future expense, like maybe your child’s college tuition fees that will be required about 3 to 4 years from now. Short-term investments can help you ensure a better future for your kids by giving you the option to choose the best education for him or her. That is why more and more people are choosing to invest their assets in short term investments rather than their long term counterparts.

The Best Investment Schemes to Ensure You Make The Right Decision

The Indian finance industry offers a lot of attractive short-term investment options today. We’ve listed down a few of the top contenders that are guaranteed to provide the best results:

Savings Account:

The most common and widely-used short-term investment savings accounts offer one of the highest amounts of liquidity coupled with incomparable security for your funds. However, the downside is that they provide a very modest rate of return—between 4% to 6%, based on the amount deposited and tenor.

Also Read: Investment Options Where You Can Grow Your Money

Gold Investment:

The best part about investing in gold is the independence from market fluctuations and stability even in times of inflation, social upheaval, and banking crises. And since the demand and value of gold has been consistently rising over the past few years, many have reported a hefty 23.5% return on investment for it.

National Savings Certificate:

With a fixed term period of 5 years, the Postal Department of India’s National Savings Certificate is a lucrative investment option since the maturity amount is not taxable. But it is important to remember that the interest amount is not exempt from tax.


These short-term investments are gaining popularity due to their risk-free nature and high liquidity option. Essentially, they are funds you can offer as a loan to corporations or the government. After the maturity period, your principal amount is returned to you along with a fixed rate of interest per annum.

Fixed Deposits:

Fixed Deposits are one of the safest and most profitable options when it comes to short-term investment. They come with a horde of features—including high stability and credibility, the choice to apply online, flexible tenor periods ranging from 12 to 60 months and, most importantly, a significant rate of return on your investment. They are not subject to the whims of market fluctuations and unforeseen volatility. Due to their popularity, financial companies are now offering tools like online Fixed Deposit calculators to help investors calculate and see their returns against their chosen tenor with ease. You can even choose between cumulative and non-cumulative Fixed Deposits to better manage your finances.

Bajaj Finance’s Fixed Deposits are by far the best short-term investment option since they incorporate all the benefits of the other choices without including their drawbacks.

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