11 Best Short Term Investment Plans With Higher Returns

You are looking to get some returns to meet your financial goals but you don’t know where to invest your money for a short duration. I have 11 best short term investment plans which can help you to get to your goals.

What are short term investment plans?

Short term investment plans as the name suggests one person is trying to make investment plans for a short duration of time. Short term investment plans help to achieve your short term goals which may occur in a couple of months. Short term goals can be anything it can be paying your college fees, clearing your debt, vacation planning, wedding functions, etc.

What is the tenure of short term investment plans?

There is no hard and fast rule of considering short term tenure. Because when you see basically if you invest for less than 3 or 5 years it is considered a short term investment plan. But as I said earlier this is not the whole picture. If someone is looking to pay their college fees next year so for them short term investment plans can be for 1 year. So it can be for 1 day to anywhere between 5 years it can range according to individuals needs and wants.

Why it is important to invest in short term investment options?

It becomes very important to invest in short term investment options because of the following things:-

  1. You can’t only focus on the long term that’s why short term investment options is a must for anyone. No matter whether you are rich or poor.
  2. You get some tax exemption in short term investment options.
  3. If you are a safe player you can go with short term investment plans.

What is the features of short term investment plans?

Some of the key features of short term investment plans are as follows:-

  1. Any beginner who is looking to start the investing journey can start with short term investment plans.
  2. Low risk or you can say safer risk options are available.
  3. High liquidity which helps to get you in no time.
  4. You can avail the benefits of tax exemption.

Things to know before investing in short term investment plans

  1. Don’t invest blindly do your own analysis before putting money anywhere
  2. You can’t get huge amounts of returns in short term. So don’t expect to get 15%, 20% or 25%.
  3. 3 Things to do before investing

How to choose short term investment plans?

It becomes essential to choose the right short term investment plan no matter how much wealthy you are. If you are investing in the wrong instrument you are not going to get the benefit. It becomes seriously important to know exactly which instrument will work for you. If somebody has got 15% of return from the instrument the same will not be true for you. No, you can’t. Let’s look at some of the things you have to keep in mind for choosing any short term investment plans.

1. Investment Goals

Know your investment goals so that you can plan accordingly. Let’s say you are looking for paying your education free so according to that you will select the investment plan that will help you to meet your goals. Let’s say you are looking for a wedding purpose so in that case your instrument will be different. So you need to know exactly what is your goal, and how much amount you need, so that you can calculate and easily available.

2. Know your risk appetite

Listen there are lots of investment option which differs according to their risk. So you need to know how much risk-capable you are. Are you able to bear the loss of 5 Lakh or whatever amount depending on your investment? Risk appetite is something that is how much loss you can accept and sleep without the tension of the losses.

3. Calculate the expected returns

Know how much returns you are going to get so that it will be easy for you to choose the investment plan according to that. If you fail to do this, then there might be a probability that you might fail to meet your investment plans.

11 Best short term investment plans for beginners

Disclaimer:- Listen there are many options available in this world for short-term investment plans but I have listed which are safer and trusted by the majority of people.

Savings Account

The savings account is the go-to option for a safe player. Because when you talk about the savings account generally interest rates are 2.5 % to 7.25 %. I know after looking at that upper limit many people had thought of investing in that while reading. But wait when you talk about the popular bank like SBI you will get around 2.7%, ICICI will give you around 3- 3.5% and the same goes with HDFC. You check your bank do you get the magical number of 14%? 😂 I know you got the answer.

Fixed Deposits

Fixed deposit 😡 Yeah you got to know how I am reacting for FD lovers. If you are looking to grow your wealth by investing in FD then you are so innocent or don’t know the money game. Anyway, we will talk about this topic some other days. Generally, FD provides 3% to 8%. Let’s see the popular fixed deposit-providing banks such as SBI (3% – 6.5%), ICICI (3% – 6.9%), and HDFC (3% – 7%). Don’t forget that you have to pay the tax on it according to your tax slab.

Recurring Deposits

Recurring Deposits are commonly known as RD. Well, basically it is not much better than FD but a slight difference in both of their returns. RD generally rates are 2.5% to 8%. Have a look at the below tables to know more.

Sr NoBankAdult Interest RateSenior Citizens Interest Rate
1SBI4.4% – 5.5%4.9% – 6.2%
2HDFC4.4% – 5.5%4.9% – 6.25%
3ICICI3.5% – 5.5%4.9% – 6.3%

Corporate Deposits

Corporate Deposits are basically what you invest in NBFC. NBFC stands for Non-Banking Financial Companies. One may generate 7% – 8%. Some of the Corporate deposits provide over 10% return. See to it that you have to do proper research otherwise if you had not done proper homework you might wipe out your account.

Post Office Schemes

Well, there are lots of post office saving schemes where one can get huge benefits. You can read these 9 best post office saving schemes. One of the famous post office time deposit schemes is good for short term investment plans. One can get 6.8% after completing 1 year. See to it that one has to pay tax.


Bonds are very popular. Bonds are of two types government bonds and corporate bonds.

Government Bonds

In government bonds, you can get up to 7%. It is a safer option compared to corporate bonds.

Corporate Bonds

In corporate bonds, you can get up to 7% to 12%. But see to it that it is very risky. If you are likely to invest in corporate bonds note that the company should be AAA. Although there is no guarantee if the company fails you may lose all your capital.

Liquid Funds

Liquid funds are a great option if you don’t want to take a headache. One can easily get 7% to 9%. One needs to pay tax according to their investment period.

Debt Funds

Debt Funds can give you 7% to 10%. It is seen that one if invested properly can get up to 13.68% return. One of the debt funds has provided that return in the past. So don’t look at the past number and invest. Don’t tell me history repeats dialogue 😂. I know it can be but who knows but yeah you can get 7% and above if you research well.

Fixed Maturity Plans

One can make anywhere between 6% – 7% in a fixed maturity plan.

Mutual Funds

A mutual fund is basically a pool of money where professionals invest their money in the market. Anywhere 5% – 15 % you can expect. It is the go-to option for many people. Yeah, it is good but see the expense ratio. Because expense ratio charges vary. So see the exit load, expenses ratio, etc. before investing.


ULIP stands for Unit Linked Insurance Plans is a combo. I say combo because it helps you put in insurance and investment. 10% – 12% is the interest rate one can get easily. The best is it is tax-free but when you have over 2.5 Lakh then you need to pay tax on that interest.

Final Call

I know after going through the list some may be happy but equity lovers will not like that much. I can understand your concern but try to understand equity is very volatile. It becomes more volatile when you think of creating wealth in the short term. I know many stocks where you can generate more than 25 % but I am not recommending you because there is also high risk.


Is it safe to invest in short term investment plans?

Yes, it is safe to invest in short term investment plans if you do your proper homework.

Can you double your money in short term investment options?

No, you can’t double your money while getting 10% in short duration.

How much money to invest in short term investment plans?

It’s up to you you can start with any amount.

I have spare money left what should I do?

Do some savings, emergency fund, make an investment, do some charity, if still left donate that 😹

I hope you like the post Best short term investment plans with higher returns. If you like don’t forget to share because sharing is caring. If you have any queries comment below I would love to try to make an article on it.

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