Top short-term investments in 2021

If you’re making a short-term investment, you’re often doing so because you need to have the money at a certain time. If you’re saving for a down payment on a house or a wedding, for example, the money must be at the ready. Short-term investments are those you make for less than three years. You’ll sacrifice a potentially higher return for the safety of having the money.

What to consider

So safety comes at a cost. You likely won’t be able to earn as much in a short-term investment as you would in a long-term investment. If you invest for the short term, you’ll be limited to certain types of investments and shouldn’t buy riskier kinds such as stocks and stock funds.

(But if you can invest for the long term, here’s how to buy stocks.)

Short-term investments do have a couple of advantages, however. They’re typically highly liquid, so you can get your money whenever you need it. Also, they tend to be lower risk than long-term investments, so you may have limited downside or even none at all.

Here are the best short-term investments in March:

  1. Savings accounts
  2. Short-term corporate bond funds
  3. Short-term US government bond funds
  4. Money market accounts
  5. Certificates of deposit
  6. Cash management accounts
  7. Treasurys

https://www.bankrate.com/investing/best-short-term-investments/