8 Best Short Term Investment Plans with High Returns in 2024

Discover the list of top short-term investment plans for 2024 in India with attractive returns.
Short Term Investments
4 mins
22 February 2024

When looking at the suitable investment options, you must choose your investment options based on your liquidity requirements, tenor and risk appetite. Safe investment options like fixed deposits are good short-term investment options that provide you with flexibility and safety of deposit to earn assured returns.

What is a short-term investment?

A short-term investment refers to allocating funds to financial instruments with relatively brief maturity periods, typically ranging from a few days to a few years. Unlike long-term investments, short-term investments are intended for capital preservation or quick returns rather than prolonged wealth accumulation. Common examples include money market instruments, FDs Post-Office Time Deposits, short-term bonds, etc.

These investments offer liquidity, allowing investors to access their funds quickly, making them suitable for individuals with immediate financial goals or those seeking to take advantage of market opportunities. While short-term investments may yield lower returns compared to long-term options, their flexibility and reduced exposure to market fluctuations make them valuable for managing short-term financial needs or maintaining a liquid portion within a diversified investment portfolio.

Pro tip

Enjoy higher interest rate with Bajaj Finance Digital FD. Unlock returns of up to 8.85% p.a. by investing for 42 months via our website and app.

8 best short-term investment options in India

If you’re looking for secure ways to invest your money for steady, risk-free growth, the following options are ideal for you.

The best short-term investment options available in India are the following

  1. Savings account
  2. Fixed deposits
  3. Recurring deposits
  4. National Savings Certificate
  5. Liquid Funds
  6. Investments in NCD's/ Corporate or Company Deposits
  7. Treasury Securities
  8. Post-Office Time Deposits

Read along to know more about these savings schemes and find out which is the best option to grow your savings.

1. Savings account

As one of the preferred choices of most people, savings accounts offer maximum liquidity. This helps you withdraw funds anytime and anywhere without any hassles. However, with an interest rate hovering around 4%, a savings account is not the best investment vehicle unless you constantly need access to all your funds.

2. Fixed deposits

Fixed deposits are easily among the best options for short-term investments. They offer a high rate of return, independence from market fluctuations and interest rate volatility, and high flexibility in terms of tenor period. You can also withdraw your deposit during times of emergency by paying a penalty. The interest on FD is taxable after your earnings cross Rs. 10,000.

The safety of capital and surety of returns has increased the popularity of fixed deposits as investments. Enjoy additional features like fixed deposit calculator that help you calculate returns and plan your investments accordingly. You can opt for a hassle-free online fixed deposit application with some of the leading financiers. You can check fixed deposit rates in India first before making a decision.

3. Recurring deposits

These deposits can be opted for if you do not want to invest a lump sum amount in one go. Recurring deposits offer you the flexibility to invest money monthly. Opening a recurring deposit account at your nearest financial institution or even at the post office is possible. Recurring deposits from financial institutions have a minimum tenor of six months and a maximum tenor of 10 years. Remember that interest earned on them is taxable.

4. National Savings Certificate (NSC)

This investment option has a tenor of 5 years. Then, all you need to do is visit your post office and complete a simple application process. An advantage of NSCs is that you can claim tax exemptions under section 80C of the Income Tax Act. But, again, the interest earned is taxable.

5. Liquid funds

Liquid funds are a type of mutual fund that invest your money in short-term government certificates or securities. An investor can withdraw money from these funds at any time. However, it is not prudent to allocate your emergency funds into this option, because gaining complete access to your cash back takes around 2 or 3 days.

Liquid funds offer you a higher interest rate of up to 7%. Moreover, since the money in these funds is invested in money market instruments, you can expect a comparatively higher amount of security for your investment.

6. Investments in NCD's/ Corporate or Company Deposits

Non-Convertible Debentures (NCDs) and corporate/company deposits are issued by companies to raise capital. They offer higher interest rates than traditional bank FDs. However, it's crucial to research the issuer's creditworthiness before investing in these instruments.

7. Treasury Securities

Government securities, like Treasury Bills (T-Bills), are highly secure short-term investments. They are issued by the Reserve Bank of India (RBI) on behalf of the government. T-Bills come in various tenures and are an excellent option for risk-averse investors.

8. Post-Office Time Deposits

Similar to FDs, post-office time deposits offer fixed interest rates and various tenure options. They are considered a safe investment choice and can be opened at any post office branch across India.

How Short-Term Investments Work

Short-term investments are financial instruments designed for a brief investment horizon, typically ranging from a few months to a few years. They operate on the principle of preserving capital while generating reasonable returns in a relatively short period. Here's how they work:

  1. Liquidity and Accessibility: Short-term investments emphasize liquidity, allowing investors to access their funds quickly and without significant penalties. This makes them suitable for short-term financial goals and unforeseen expenses.
  2. Investment Options: Short-term investments encompass a variety of options, such as Savings account, Fixed deposits, Recurring deposits, National Savings Certificate, Liquid Funds, Investments in NCD's/ Corporate or Company Deposits, Treasury Securities, Post-Office Time Deposits. These options differ in terms of risk and return potential.
  3. Returns: Short-term investments typically offer lower returns compared to long-term options like stocks. However, they provide stability and capital preservation.

Highlights of Good Short-Term Investments

Choosing the right short-term investments can make a significant difference in achieving your financial goals. Here are some key highlights of good short-term investments:

  1. Safety: Opt for investments that prioritise the safety of your principal amount.
  2. Liquidity: Look for investments that offer easy access to your funds without incurring substantial penalties. Liquid funds and savings accounts are known for their high liquidity.
  3. Risk-Adjusted Returns: Evaluate investments based on their risk-return profiles. Understand that some options, like equity-linked investments, might offer higher returns but come with higher risk.
  4. Suitability: Ensure that your chosen short-term investments align with your financial goals and investment horizon.

What makes a good short-term investment?

  • Liquidity: A good short-term investment should be easily convertible to cash, providing quick access to funds when needed.
  • Low Risk: Minimising risk is crucial for short-term investments; opt for instruments with lower volatility and stable returns.
  • Short Maturity Period: Choose investments with shorter time frames, aligning with your specific financial goals and minimising exposure to market fluctuations.
  • Interest Rates: Consider investments with competitive interest rates to ensure optimal returns within the chosen short time horizon.
  • Safety and Security: Prioritise safety by selecting instruments issued by reputable entities or backed by government guarantees.
  • Diversification: Diversify short-term investments across various instruments to spread risk and enhance overall portfolio stability.
  • Tax Efficiency: Explore tax-efficient short-term investment options to maximise returns after accounting for applicable taxes.
  • Ease of Management: Opt for investments that are easy to manage, requiring minimal ongoing attention and administrative efforts.


In conclusion, short-term investments are an integral part of financial planning, providing flexibility, liquidity, and capital preservation. By understanding how they work, assessing your requirements, and focusing on the highlights of good short-term investments, you can make informed decisions to achieve your short-term financial objectives.

Calculate your expected investment returns with the help of our investment calculators

Investment Calculator
SIP Calculator FD calculator SDP calculator Gratuity Calculator Lumpsum Calculator Step Up SIP Calculator

Frequently Asked Questions

What is the Digital FD offered by Bajaj Finance?

Bajaj Finance has launched a new FD type called "Bajaj Finance Digital FD" for a period of 42 months. Bajaj Finance is providing one of the highest interest rates of up to 8.85% p.a. for senior citizens and for the customers below the age of 60 they are providing up to 8.60% p.a. The Digital FD can be booked and managed only through the Bajaj Finserv website or app.

What is the tenure of Short-Term Investment Plans?

Short-term investment plans typically have a tenure ranging from a few days to a few years, providing flexibility for investors with varying financial goals and timeframes.

Which short-term investment plan can give the highest return?

Identifying the short-term investment plan with the highest return depends on factors like risk tolerance and market conditions.

What are some examples of short-term investment?

Examples of short-term investments include money market funds, FDs, certificates of deposit (CDs), and short-term government or corporate bonds.

What is a short-term debt fund?

A short-term debt fund is a type of mutual fund that primarily invests in debt securities with shorter maturities, providing potential returns while managing interest rate risks.

Is a short-term investment an asset?

Yes, a short-term investment is considered an asset as it holds intrinsic value and has the potential to generate returns or be converted into cash.

Which is the safest short-term investment?

Generally, safer short-term investments include government securities, high-quality corporate bonds, and money market funds, providing stability and reduced risk.

What are the benefits of investing in short-term investment?

Benefits of short-term investments include liquidity, reduced exposure to market volatility, and the ability to meet immediate financial needs, making them suitable for specific financial goals and risk appetites.

Show More Show Less

Bajaj Finserv app for all your financial needs and goals

Trusted by 50 million+ customers in India, Bajaj Finserv App is a one-stop solution for all your financial needs and goals.

You can use the Bajaj Finserv App to:

  • Apply for loans online, such as Instant Personal Loan, Home Loan, Business Loan, Gold Loan, and more.
  • Explore and apply for co-branded credit cards online.
  • Invest in fixed deposits and mutual funds on the app.
  • Choose from multiple insurance for your health, motor and even pocket insurance, from various insurance providers.
  • Pay and manage your bills and recharges using the BBPS platform. Use Bajaj Pay and Bajaj Wallet for quick and simple money transfers and transactions.
  • Apply for Insta EMI Card and get a pre-approved limit on the app. Explore over 1 million products on the app that can be purchased from a partner store on No Cost EMIs.
  • Shop from over 100+ brand partners that offer a diverse range of products and services.
  • Use specialised tools like EMI calculators, SIP Calculators
  • Check your credit score, download loan statements and even get quick customer support—all on the app.

Download the Bajaj Finserv App today and experience the convenience of managing your finances on one app.

Do more with the Bajaj Finserv App!

UPI, Wallet, Loans, Investments, Cards, Shopping and more


As regards deposit taking activity of Bajaj Finance Ltd (BFL), the viewers may refer to the advertisement in the Indian Express (Mumbai Edition) and Loksatta (Pune Edition) furnished in the application form for soliciting public deposits or refer https://www.bajajfinserv.in/fixed-deposit-archives
The company is having a valid Certificate of Registration dated March 5, 1998 issued by the Reserve Bank of India under section 45 IA of the Reserve Bank of India Act, 1934. However, the RBI does not accept any responsibility or guarantee about the present position as to the financial soundness of the company or for the correctness of any of the statements or representations made or opinions expressed by the company and for repayment of deposits/discharge of the liabilities by the company.

For the FD calculator the actual returns may vary slightly if the Fixed Deposit tenure includes a leap year.