Short Term Investments  Short Term investment
 
Short Term Investment Options

Short term investment options are a great place to park your money for a little while. They are several different types of short tem investment options that are relatively safe places to park your cash, where you can earn some interest. 

When you have some money and you are considering some short term investment options you need to consider your goals for the money. Do you want the money locked down? Do you want it available to you? How long are you planning on leaving it in a short term investment vehicle? Based on your answers to these questions there are a quite a few good options available. Once you have your goals established and know how long you want to keep your money parked than you can evaluate some of the options.  

 


Money Market Funds  

Money market funds (MMF’s) are usually offered by brokerage houses. They are a great place to park your cash for the short haul. They usually offer higher interest than traditional savings accounts, are usually very low risk and you can still have access to your money should you need it.  

MMF’s usually allow a withdrawal or two each month; you can opt for an interest check quarterly or choose to roll the interest in to the MMF. 


Certificate of Deposits  

Certificate of deposit account s are short term investment options that are offered by banks. They pay higher interest than traditional savings accounts but have different rules and restrictions. CD’s are not as liberal as MMF’s. Usually the agreement is for at least 6 months and they are definitely not transaction friendly accounts. Typically you deposit the money and agree to leave it alone for the term that has been agreed upon, of course no one wants to keep your money, if you really need to get it out you can, but expect to pay penalties.  If you remove the money before the end of the term you may wind up with less money than you put in. 


Money Market Accounts  

Money market accounts are also short term investment options that are offered by banks. They are more liberal than CD’s and are similar to Money Market Funds. They are transaction friendly accounts, which mean that you can withdraw money without penalties. 


Regular Savings Accounts 

Regular or passbook savings accounts are a really safe place to park your money; they are virtually without risk, transaction friendly, but offer a much lower interest rate than most other short term investments.  If you are more cautious than most this may be a nice safe option for you.  

If you have some extra cash that you need to stash for a short period of time, why not look at short term investment options?  You can earn money on your money while you are waiting to make a larger investment or purchase.  There are many different options that are sure to fit most any situation.   

Decide on your financial goals and than choose from one of the many short term investment options that are available.  


Short Term Investment Options