short term investment plans for 3 months

Short Term Investment Plans for Three Months [2022]

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Not all investment plans have to be long-term. There are several short term investment plans for 3 months suitable for investors with temporary plans in mind.

You can follow our guide to know more about short-term investment plans besides regular savings accounts. Short-term investment options are more beneficial to have higher returns.

In our article today, we will learn more about how you can invest money for a short period of time and what the options are. Let’s begin.

How to Invest Money For Three Months and What to Expect?

Small investment plans are not implemented by any investment institutions. Instead of requiring a large amount of money, small investments plans allow personals to invest a small amount of money for a short period of time.

Suppose you have $45000 and you want to invest it in short-term investments. Investment plans are available from 3 months to 5+ years. Once the investment reaches its maturity,  you can turn them into cash or another form of investment to pursue.

There are many short investment plans. But before we go into that part, we need to know what are properties a reliable short-term investment must-have.

Properties of reliable short investment plans:

Any reliable short investment plan must have some sustaining properties. Before you plan to invest your money in short-term investments, you must ensure that your short investment plan has these qualities.

  1. Liquidity: Liquidity is the property that allows you to convert your asset into ready cash without influencing the market value. Any short-term investment plan must have this property to ensure zero loss to existing assets.
  2. Consistency: When any small investment plan is stable enough, fluctuation in the stock market won’t affect the existing plans.
  3. Cost-Effective: Short-term investment plans are not like any other long-term investment plans. The cost to initiate/ break or finish the investment plan must be reasonable and low.

Top 5 Short Investment Plans For You

There are many short investment plans around you. All you need to do is, find the right plan for yourself that fits your preference and suitability. Here are the 5 best investments that come up with 1 year or fewer investment plans for you.

  1. Online Savings Account: We all look for safe policies to have some interest in the money we invest.

The online savings account is one of the most reliable risk-free methods to earn some interest on your money. Unlike many other investment plans, this process requires almost no additional efforts at all. Instead, they offer a sustainable rate of interest without implementing any charges.

These kinds of accounts are highly flexible and liquid for investors. The risk involved in online saving accounts is almost minimum.

Here is a list of the best online saving accounts that you can choose from.

2. Money Market Accounts: If you are looking for a simpler form of short investment option, you should go with a money market account.

With only a minimum investment, money market accounts will offer you higher interest. They are highly liquid.

However, money market accounts can cause some trouble for long-term investments. Within a long period, their interest rate may seem low with an inflation rate tough for the investors to keep up.

This doesn’t affect the results when you are using money market accounts with a short-term goal.

3. Short Term Bond Funds: Short-term bond funds are corporate bond funds. They are initiated by governing agencies and its government.

These bonds are considered safe because they are promised by the government itself. However, they are not backed up by FDIC (Federal Deposit Insurance Corporation). They are the government’s word to repay your money.

In fact, they are highly flexible in terms of liquidity. There is only a minimum risk involved since they are held by the government itself. Even if there is any rise or fall in the interest rates, there is hardly any possibility for the funds’ price to change.

4. Cash Management Accounts:  If you are looking for multiple options to invest your money on short terms, cash management accounts can be an ideal choice for you.

These accounts act as any regular accounts. You can regularly invest money here, issue checks for your accounts, and even transfer money from one account to another. In a word, there are a lot of flexibilities when you run cash management accounts.

With cash management accounts, you can withdraw your money anytime you like. Unlike money market accounts, they don’t put limits on monthly money removal.

And when it comes to safety, these accounts can be very safe as they already place your money in an FDIC approved bank.

5. Money Market Mutual Funds: You may confuse money market accounts with money market mutual funds. However, two of them may share similar names and short investment plans but they are different in interest rates and other factors.

Both money market accounts and money market mutual funds are excellent in short investment plans. However, because a money market mutual fund is a mutual account, individuals have to pay an additional expense ratio.

However, these mutual funds may not be able to ensure safety like other FDIC approved short investment plans. In case of extreme distress, you may lose your money. But the possibility for such a scenario is down to a minimum. And,  at the end of the day, your money will remain safe with money market mutual funds.

These accounts come with 6 withdrawals per month. In a word, they are really a flexible plan with handsome interest in return.

The Verdict

It is very casual to avoid long-term investment plans. Flexibility any individual can enjoy with short-term investment plans is often quite attractive and useful for any sudden emergency.

Short-term investment plans are available in different time categories. In fact, any investment that is below 5 years of the plan is considered a short-term investment. We hope our article was useful enough for the best short term investment plans for 3 months.

If you like our article, do share it with others as well.

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