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