Top Short-term Investments In January 2026

Founded in 1976, Bankrate has a long track record of helping people make smart financial choices. At Bankrate we strive to help you make smarter financial decisions. We do not include the universe of companies or financial offers that may be available to you. The offers that appear on this site are from companies that compensate us. All entities are separate but affiliated subsidiaries of Morgan Stanley.

Evaluate your risk tolerance and choose investments that align with your comfort level and financial goals. Flipping real estate is based on buying properties at a discounted price and upgrading them, making it one of the best short-term investments for high returns. Short-term corporate bonds typically offer higher yields than government bonds. One of the primary advantages of short-term corporate bonds is their relatively low default risk.

How Did Indian Equity Markets Perform In 2025?

Newly opened money market accounts typically offer higher interest rates than savings accounts. Spread your investments across asset classes, such as stocks, bonds, commodities, and cash equivalents, to reduce risk and capture opportunities in various market conditions. This lower risk profile is particularly appealing to conservative investors, institutions, and money market funds seeking stable returns. Government bonds are debt securities issued by governments to raise funds for various purposes, making them a cornerstone of low-risk short-term investments. Short-term investments can complement long-term strategies, offer a way to diversify portfolios, manage risk, and seize time-sensitive opportunities.

Fidelity Can Help You Find The Right Mix Of Cash And Investments

• The high-yield savings accounts below offer above-average APYs and don’t enforce a limit to the number of withdrawals or transfers you can make.
• In general, money market accounts offer higher APYs than savings accounts, so you could get a higher return.
• Individuals can invest up to $10,000 each in Series I Savings Bonds every calendar year, which are issued by the US Department of the Treasury.
• To be eligible for this cash bonus offer, you must apply a valid promotional code obtained through one of our authorized affiliate marketing partners at the time of account opening.

Short-term investing has gained prominence as investors seek opportunities for quick returns and flexibility in managing their portfolios. With user-friendly platforms and automated tools, short-term investing is now more accessible than ever, enabling investors of all experience levels to participate and thrive. From developed markets like Europe and North America to emerging economies, global trends present some of the best places for short-term investing. As technology streamlines investment platforms and global markets rebound from recent challenges, 2026 offers exciting opportunities for those ready to act quickly.

Government Bonds

However, they are paying more than traditional savings accounts do. That means your chances of losing money on these savings account are next to nothing. And it’s still a plush extra benefit for a virtually risk-free investment.

• Having multiple funds can diversify your portfolio as these products are not FDIC-insured like a savings account or the similarly sounding money market account.
• The minimum investment requirement is usually much lower, which benefits both the lender and the borrower.
• Certificates of Deposit are a safe and easy way to invest your money short term, even if the return is not the highest.
• We believe every investor deserves an expert global partner.
• Meanwhile, hacks of crypto exchanges and lingering questions over whether cryptocurrency brokerage accounts are segregated in the event of bankruptcy, among other issues, have cast a shadow over the spot market’s accessibility.

Overdraft Fees

A high-yield savings account can earn significantly more than accounts offered by traditional brick-and-mortar banks. Some cash management accounts even offer a welcome bonus when you make a deposit and keep it in your account for a minimum amount of time. The best short-term investments of 2023 can help keep your money safe until you need it. But you’ll sleep better at night knowing your short-term investments are unlikely to https://www.forexbrokersonline.com/iqcent-review lose money. That’s because short-term investments require assuming a lower level of risk in order to be relatively certain that you won’t lose your principal. If you’re saving for a goal and will need the money in the next few years, short-term investment options are a good way to earn interest while keeping your exposure to risk low.

Cash bonuses are treated as interest income for US tax purposes and will be reported on IRS Form 1099-INT and may be subject to 24% backup withholding if your account is not properly documented with a valid Form W-9. If you are not eligible or are deemed to be disqualified from receiving the bonus, we will notify you within one hundred and five (105) days of account opening. You must keep your account open and in good standing to receive the bonus. Cash credits will be paid to the account where the deposit is made. The average daily balance calculation will begin from Day thirty (30) of account opening and will end forty-five (45) days following (“Maintenance Period”).

• Unless you have knowledge of how to balance risk and possible reward, p2p lending is a sucker bet.
• Seriously though, T-Bills are perfect for people who need a place to park their money for a few months.
• Money market accounts work similarly to high-yield savings accounts, although they typically offer slightly higher investment returns coupled with a higher starting investment amount.
• In addition, long-term bonds historically outperform short-term investments with a higher yield.

Savings Accounts

• For frequent alerts with a short time horizon is Stock Market Guides, since the service allows you to customize your alert preferences based on things like strategy and time horizon.
• The investment experience is similar to a bank CD, except you can earn a higher return as you’re a direct lender.
• Therefore, the shorter the maturity date, the less risky your investment.
• Here’s how to balance your short-term cash needs and long-term financial goals with cash solutions.

The rates are variable for savings accounts and money market accounts. With the SoFi Money account, for example, you get to earn a higher investment return than traditional savings accounts offer, and you can access your cash for free at more than 55,000 ATMs. Certificates of Deposit (CDs) are offered by traditional and online banks, and they let you earn a higher investment return than traditional savings accounts. Just keep in mind that money market accounts are different from money market mutual funds. Money market accounts work similarly to high-yield savings accounts, although they typically offer slightly higher investment returns coupled with a higher starting investment amount. Short-term investments are designed to help you grow your money for a short period of time without risking a loss of your principal.

Vanguard’s money market funds are offered with a stable $1 NAV (net asset value). We offer both taxable government and municipal (tax-exempt) money market funds. The annual expense ratios for our money market funds range from 0.07%–0.12%, or $7–$12 for every $10,000 invested. A money market fund is a type of fixed income mutual fund that invests only in highly liquid, short-term debt. Money Market funds offer lower market risk and give your savings an opportunity to grow.

• Government bond funds purchase investments such as T-bills, T-bonds, T-notes and mortgage-backed securities from federal agencies such as the Government National Mortgage Association (Ginnie Mae).
• In addition, unlike the six withdrawals per month limit inflicting most high-yield accounts, you can also make unlimited monthly withdrawals and transfers.
• Oftentimes, banks will offer promotions for new customers who open an account and sign up for direct deposit or deposit a specified minimum within a certain number of days.
• If you want to buy (CD) or sell (CD or CUSC) on the secondary market, Fidelity Brokerage Services LLC ("FBS") will charge you a markup or markdown.

Will The Indian Stock Market Make A Comeback In 2026?

Short-term Investments in virtual currency have produced jaw-dropping returns for some, but the field still presents risks. After a bear market, it could take months or years to get your money back. Catch up on CNBC Select’s in-depth coverage of credit cards, banking and money, and follow us on TikTok, Facebook, Instagram and Twitter to stay up iqcent review to date.

Short-term investments seek to strike the right balance between risk and reward. Conversely, long-term investments are usually held in vehicles such as 401(k)s, IRAs and 529 education savings plans to meet https://www.daytrading.com/iqcent long-term goals such as retirement and saving for college. For most investors, short-term stocks work best as tactical positions alongside a long-term investment plan, not as a replacement for it. Short-term stocks can offer opportunities when markets react to earnings, data or sector shifts, but they require careful timing and risk control. 3For the 10-year period ended September 30, 2025, 6 of 6 Vanguard money market funds outperformed their Lipper peer-group average. You can buy a Vanguard money market fund in your account through the Buy & sell feature on your secure account dashboard.

What Americans Do With Their Tax Refund Average Tax Refund Check in Every State Results will vary for other time periods. You should consider all material differences before choosing to invest. See other information you might need to open an account See the next question for more details about how to open an account.