No one love leaving their money idle in a saving account in the bank because it brings in nothing or low interest, but some people don’t also like investing their money in a long term investment vehicle that will later bring back just a small interest after years of investing it.
Most people prefer a high yield short term investment vehicle where they can invest their money for a short term and make a better higher interest on it.
Seriously speaking, we are in an awful time where the stock market is not moving the way we want it. In fact, it can’t be predicted any more that if you leave your money for the next 5-7 years it will triple your initial investment capital in Canada, the UK, Australia, Kenya, India, Pakistan and other parts of the world.
Compound interest don’t work like it used to before because money has started losing it value.
High returns short term investment is the best alternative for today’s unstable market for investors. This kind of investment business allows you to invest your money for months with little or low risk, know that your money won’t be tied up for a long period time.
With short term investment with high yield options, your capital is expected to grow for months or a few years after which it can be turned into cash when it reach maturity, unlike long term investment that often requires decades.
In this post, I will be sharing various examples of short term investment ideas for beginners that generates high returns that can help you in getting assurance that you can get your investment amount back and a higher interest added to it.
1. Money Market Account
In the UK, Money market account is one good short term investment business idea you need to consider because it offers higher interest rate.
One thing I love about money market account is that it does not matter about the length of time you leave your money but the amount invested.
A money market account investor can transfer or withdraw his or her fund at any time without any penalty of paying a fee.
These are the reasons why most people consider investing in money market account because it has zero or low risk involve.
2. Certificate of Deposit (CD’s)
This is a short term investment idea vehicle where after maturity you can withdraw the full amount together with the interest.
Different banks offer different plans ranging from 6 months to 5 years. The plan you wish to tie your money to depend on you, the longer the term of investment, the higher the yield your investment will receive.
The only downside is that if you choose to withdraw your money before maturity time, you will be charge a fee. This will likely affect your interest, so it is better you choose a plan that will fit you.
3. Peer to Peer Lending
This is also another short term investment idea that allows you to borrow your money to investors. You become the bank and you get interest upon your money.
There are many peer to peer lending websites like Lending Club, Freedom Chase Unlimited that act as tools to connect investors like you to qualified consumers in need of a loan.
Don’t be afraid about the safety of your money, these sites makes sure your money is safe because there are processes involved before a consumer will be giving any money.
Many people who have free money to invest mostly use this investment vehicle because no bad record has been heard of them ever since.
4. Municipal Bond
Municipal bonds have an interest rate risk. The value of the bond decreases to risk in the marketplace to compensate it.
When rate goes up, the bond losses it value and if you are an investor at that moment, you should not sell because you will be on the losing side.
When a bond losses it value and you hold on till it maturity age, you get 100 percent money back and the interest yielded on it too.
To play smart on municipal bond, you could buy from someone else who bond is closer to maturity using a brokerage firm.
This is a short term investment idea for smart investors, so be very smart when investing into municipal bond. I will suggest you get a investor manager to help you on it.
5. Online Saving Account
If you don’t know where to store your money that can guarantee you safety and a slight interest in return, then consider putting your money into an online saving account.
Many banks are offering higher interest rate on online saving account, so you can go do your research and be sure of where to put your money.
These are some legit short investment ideas that can guarantee you safety of your money and a better interest rate compare with other investment vehicles that you are not sure about the safety of your money.