U.S. Bank $600 Bonus U.S. Bank $600 Bonus U.S. Bank $600 Bonus
ADVERTISEMENT
en English
en Englishes Españolfr Françaisde Deutschit Italianopt Português
January 27, 2023 5:28 am CST
MoneysMyLife
SUBSCRIBE
  • Home
  • Bank Bonus
    • Best Bonuses
      • Best Bank Bonuses
      • Chase
      • Bank of America
      • U.S. Bank
      • BMO Harris
      • TD Bank
      • HSBC
    • Best Bank Bonuses w/o Direct Deposit
    • Best Free Checking Accounts
    • Best Free Business Checking Accounts
    • Best Savings Rates
    • Best CD Rates
    • All Bank Bonuses
  • Investing
    • Best Brokerage Offers
    • Best Real Estate Offers
    • Best Robo-Advisor Offers
    • Best Stock Brokers
    • All Investing Offers
  • Crypto
    • Best Crypto Offers
    • All Crypto Offers
  • Deals
    • All Deals
    • Referral Deals
    • Best Referral Deals
    • Best Contests & Sweepstakes
    • Best Freebie Deals
  • Credit Cards
    • Best Credit Card Bonuses
    • All Credit Card Deals
  • Advertiser Disclosure
No Result
View All Result
MoneysMyLife
  • Home
  • Bank Bonus
    • Best Bonuses
      • Best Bank Bonuses
      • Chase
      • Bank of America
      • U.S. Bank
      • BMO Harris
      • TD Bank
      • HSBC
    • Best Bank Bonuses w/o Direct Deposit
    • Best Free Checking Accounts
    • Best Free Business Checking Accounts
    • Best Savings Rates
    • Best CD Rates
    • All Bank Bonuses
  • Investing
    • Best Brokerage Offers
    • Best Real Estate Offers
    • Best Robo-Advisor Offers
    • Best Stock Brokers
    • All Investing Offers
  • Crypto
    • Best Crypto Offers
    • All Crypto Offers
  • Deals
    • All Deals
    • Referral Deals
    • Best Referral Deals
    • Best Contests & Sweepstakes
    • Best Freebie Deals
  • Credit Cards
    • Best Credit Card Bonuses
    • All Credit Card Deals
  • Advertiser Disclosure
SUBSCRIBE
No Result
View All Result
MoneysMyLife
No Result
View All Result
Home Investing

Best Short-Term Investments of January 2023 – Savings, CDs, Bonds & More

Tony Jay by Tony Jay
January 11, 2023 10:17 pm CST
in Investing
A A
0
52
SHARES
860
VIEWS
TwitterFacebook

This post contains references to products from one or more of our advertisers. We may receive compensation when you click on links to those products. Terms apply to the offers listed on this page. For an explanation of our Advertising Policy, visit this page.

Contents

  • 1 What’s Considered A Short Term Investment?
  • 2 Here Are The Best Short-Term Investments
    • 2.1 High-Yield Savings Accounts
    • 2.2 Money Market Accounts
    • 2.3 Cash Management Accounts
    • 2.4 Certificates Of Deposit (CD)
    • 2.5 Short-Term Corporate Bond Funds
    • 2.6 Short-Term U.S. Government Bond Funds
    • 2.7 Money Market Mutual Funds
    • 2.8 Treasurys
  • 3 Tips For Investing For Less Than 5 Years
  • 4 Best Short-Term Investments Summary
  • 5 Bottom Line
Chase Total Checking $200 Bonus Chase Total Checking $200 Bonus Chase Total Checking $200 Bonus
ADVERTISEMENT

If you want to invest money for the short term, you’re probably looking for a safe place to put money until you need it in the near future.

Things are uncertain because, among other things, the economy is now facing rising inflation.

Short-term investments have less risk than long-term investments, but the best long-term investments could give you higher returns.

Safety should be the most important thing for investors to look for in a short-term investment.

Read more: See the best investing promotions here…

What’s Considered A Short Term Investment?

Most of the time, you make a short-term investment because you may need access to the money sooner rather than later.

If you’re saving for a house down payment or a wedding, for example, you need to have the money ready. Generally, investing for less than three years is considered a short-term investment.

If you have at least three to five years to invest, you can look into investments like stocks. Stocks give you the chance to make much more money.

In the past, the stock market has gone up an average of 10% per year over long periods of time.

You probably won’t make as much money with a short-term investment as you would with a long-term one.

Related: What is a Savings Bond? Here’s how they work.

Here Are The Best Short-Term Investments

Here are some of the best short-term investments that will still make you money.

High-Yield Savings Accounts

A high-yield savings account at a bank or credit union is a good alternative to keeping cash in a checking account, which usually pays very little interest on your deposit. A savings account will always get interest from the bank.

Who Are They Good For?

  • A high-yield savings account is good for investors who don’t want to take risks, and especially for those who need money quickly and don’t want to take the chance that they won’t get it back.
  • At banks, savings accounts are protected by the Federal Deposit Insurance Corporation (FDIC), and at credit unions, your money is protected by the National Credit Union Administration (NCUA).
  • There isn’t much risk with these accounts in the short term, but investors who keep their money for longer periods may have trouble keeping up with inflation.
  • Most of the time, you can earn much more interest at an online bank than at a traditional brick-and-mortar bank.
  • You can usually get to the money quickly by sending it to your main bank or even using an ATM.
  • Most savings accounts only let you take out or move money up to six times per statement cycle without having to pay a fee.
  • You’ll want to keep an eye out for banks that charge fees for keeping an account or using an ATM, so you can keep those costs to a minimum.

How To Open One:

Compare the nation’s top high-yield savings accounts below:

CIT Bank Savings Connect Earns 4.05% APY (Nationwide)

Read More

Quontic Bank High Yield Savings Account Earns 3.50% APY (Nationwide)

Read More

Axos Bank UFB Best Savings & Best Money Market Accounts Earn Up To 4.21% APY

Read More

Money Market Accounts

Money market accounts (MMAs) are another type of bank deposit account. They sometimes pay a higher interest rate than regular savings accounts, but they also usually require a higher minimum investment. Another common difference is MMAs often give you check writing ability and an ATM debit card.

Who Are They Good For?

  • Money market accounts are good for people who will need their money soon and want to be able to get to it whenever they want.
  • Make sure to find an FDIC-insured money market account, which will protect your money up to $250,000 per depositor and per bank.
  • Money market accounts are similar to savings accounts in that the biggest risk comes over time. This is because it’s usually hard for rates to keep up with inflation.
  • In the short term, though, that isn’t as big an issue.
  • The main benefit of a money market account is that you can earn interest on it, and you can also get to your money quickly if you need it.
  • Money market accounts are very easy to access, but there are federal limits on withdrawals just like with savings accounts.

How To Open One:

There are many banks and credit unions where you can open a money market account with.

Read more: See the best savings and money market account rates here…

Cash Management Accounts

A cash management account typically lets you put money in a variety of short-term investments.

Who Are They Good For?

  • A cash management account gives you a liquid cash account that lets you get to your money quickly. It may also pay you interest on what you have in the account.
  • Money market funds with low yields and low risk are often put into cash management accounts.
  • Some robo-advisor accounts put your money in partner banks that are protected by the FDIC.
  • Often, you can invest, write checks from the account, transfer money, and do other things that banks usually let you do.
  • The money in cash management accounts is always available and can be taken out at any time.
  • They may be even better than traditional savings and money market accounts, which have limits on how much you can take out each month.

How To Open One?

Robo-advisors and online stock brokers are usually the ones who offer cash management accounts. Here are some popular options:

Aspiration Promotions

Aspiration.com Online Banking Review – An Eco-Friendly Option

Read More

Wealthfront Cash Account 3.80% APY (Nationwide)

Read More

Certificates Of Deposit (CD)

When you open a CD, you agree to keep the money in the account for a certain amount of time, which can be anywhere from a few weeks to many years, depending on the maturity you choose.

The bank will pay you a higher interest rate for the security of having this money in its vault.

A no-penalty certificate of deposit lets you avoid the fee that a bank usually charges if you cancel your CD before it matures.

Who Are They Good For?

  • The no-penalty CD could be useful for people who want to have some access to their money and earn some interest at the same time.
  • A no-penalty CD may also be appealing when interest rates are going up because you can get your money out without paying a fee and then put it somewhere else where you can get a better return.
  • The FDIC backs CDs, so you won’t lose any money if you buy them.
  • The bank gives you interest on the CD on a regular basis, and at the end of the CD’s term, the bank will give you back the principal amount plus the interest.
  • CDs are less liquid than the other bank investments, but if you get a “no-penalty” CD, you can get out of it early without paying a fee.

How To Open One:

You can open certificates of deposit (CDs) at your bank or credit union. Online banks usually have the best rates. Here are some good options:

Earn Up To 4.65% APY: CIT Bank’s Best Certificate of Deposit Account Offers (Available Nationwide)

Read More

Earn Up To 4.45% APY: Quontic Bank’s Best CD Account Offers (Available Nationwide)

Read More

Earn Up To 4.35% APY: Barclays Bank’s Best CD Account Offers (Available Nationwide)

Read More

Read more: See the best CD rates here…

Short-Term Corporate Bond Funds

Corporate bonds are bonds that big companies sell to raise money to invest. Most investors consider them safe, and they pay interest at regular intervals.

Who Are They Good For?

  • Bond funds are good for investors who want a diversified portfolio of bonds without having to analyze each bond individually.
  • Individual investors who don’t have enough money to buy individual bonds and people who don’t like taking risks should also like them.
  • The government doesn’t back short-term corporate bond funds. But bonds are usually pretty safe, especially if you buy a large number of different kinds.
  • Also, a short-term fund has the least risk exposure to changing interest rates, so the price of the fund won’t change much if interest rates go up or down.
  • Bond funds are groups of corporate bonds from a lot of different companies, usually from a wide range of industries and sizes.
  • Short-term corporate bond funds are very liquid, which means that you can buy or sell them on any day that the financial markets are open.

How To Open One:

You can buy them almost anywhere online where you can buy ETFs and mutual funds.

Short-Term U.S. Government Bond Funds

Government bonds are similar to corporate bonds, except that the U.S. federal government and its agencies are the ones who issue them.

Government bond funds buy investments from government agencies like the Government National Mortgage Association, such as T-bills, T-bonds, T-notes, and mortgage-backed securities.

Who Are They Good For?

  • Short-term government bonds are good for investors who don’t like taking risks and want to put their money somewhere very safe.
  • Bond funds are good for investors who want a diversified portfolio of bonds without having to analyze each bond individually.
  • These bonds are safe because they are backed by the full faith and credit of the United States.
  • U.S. government bond funds will pay a steady rate of interest, but because they are safer than corporate bonds, they won’t pay as much.
  • Government bonds are some of the most traded assets on the stock exchanges, so funds that invest in them are very liquid.
  • You can buy and sell them any time the stock market is open.

How To Open One:

You can buy them almost anywhere online where you can buy ETFs and mutual funds.

Money Market Mutual Funds

Money market mutual funds are not the same as money market accounts. Even though they have a similar name, the risks are different, but they are both good short-term investments.

A money market mutual fund buys short-term securities like Treasury bonds, debt from cities and companies, and bank debt securities.

Since it’s a mutual fund, you’ll also have to pay an expense ratio to the company that runs the fund.

Who Are They Good For?

  • Money market mutual funds are good for people who want to be able to use their money and get a return on it at the same time.
  • Even though most of its investments are safe, money market funds are not as safe as FDIC-backed money market accounts.
  • Money market funds can lose money, but this usually only happens when the market is very unstable.
  • The money in money market mutual funds is fairly liquid, so you can get to it easily.
  • They might let you write checks from the fund.

How To Open One:

Money market mutual funds can be bought from brokers who sell mutual funds.

Treasurys

Treasurys come in three types: T-bills, T-bonds, and T-notes.

Who Are They Good For?

  • If you know exactly what kind of bond you want to buy, it’s better to buy individual Treasurys than to buy a group of them. This is because the risks and rewards of each bond are different.
  • You might choose to buy specific securities instead of a government bond fund, depending on what you want to do.
  • Like bond funds, individual bonds are not backed by the FDIC. Instead, they are backed by the government’s promise to pay back the money.
  • Treasurys are one of the safest investments you can make, but that safety comes at a cost: lower yields.
  • The most liquid bonds on the exchanges are U.S. government bonds, which can be bought and sold on any day the market is open.

How To Open One:

You can buy Treasurys directly from the government at TreasuryDirect.gov, or you can buy them from any broker who lets you buy individual bonds.

Read more: Treasury Direct Announces Series I Bonds Rate

Tips For Investing For Less Than 5 Years

If you are investing money for less than five years, you should do things differently than if you were investing for decades.

  • Investing for a short time will give you a lower return than investing for a long time.
  • Most of the time, if you’re investing for the short term, you should put more emphasis on safety than on return.
  • You might be able to earn a little extra on that CD, but what if you need the money before it matures? Fit the type of investment you make to your needs.
  • The FDIC backs bank products, so you won’t lose any of your money. But market-based products, even safe ones like short-term bond funds, could go down over short periods of time. Know the risks that come with your investments.

Best Short-Term Investments Summary

A year or lessHigh-yield savings accounts, money market accounts, cash management accounts> 3.0%Low risk and backed by the FDIC.
Two to three yearsTreasurys and bond funds, CDs~ 4.0%Bank products and Treasurys are safest, corporate bond funds slightly less so.
Three to five years (or more)CDs, bonds and bond funds, and even stocks for longer periods> 4.0% (or much more if you’re investing in stocks)CDs and bonds are relatively low risk compared to stocks, which can fluctuate a lot.

Bottom Line

When compared to longer-term investments like stocks or stock funds, short-term investments tend to be pretty safe. But make sure you know what you’re putting your money into.

Disclaimer: Before making an investment decision, all investors should do their own research on investment strategies. Investors should always be aware that the performance of an investment product in the past is not a guarantee that the price will go up in the future.

Read more: See the best bank promotions here and the best investing promotions here.

Tags: cd ratesinvesting guideonline savings
Tweet13Share21Share4Pin5SendShareSend
BMO Harris $350 Checking Bonus BMO Harris $350 Checking Bonus BMO Harris $350 Checking Bonus
ADVERTISEMENT
Previous Post

Best CD Rates: 3 Month To 5 Year Terms (Nationwide), January 2023

Next Post

Best High Yield Reward Checking Rates Nationwide January 2023

Tony Jay

Tony Jay

I'm all about finding new finance-related promotions and bonuses here at MoneysMyLife. Contact me here.

Recommended For You

Oanda (Forex Platform) Promotions: Up To $10,000 Bonus Offer

January 26, 2023 10:00 pm CST

Get up to a $10,000 bonus with this offer from Oanda, a forex trading platform. Update 1/26/2023: Offer has increased from a $5,000 promo to $10,000. Oanda offers...

Read more

Best M1 Finance Bonuses: $50, $500, $4000, $10000 Offers

January 26, 2023 4:39 am CST
M1 Finance

Read about the latest M1 Finance promotions and bonus offers here. M1 Finance (m1finance.com) is a free automated investing "robo-advisor" platform that lets you create a portfolio from...

Read more

Roth IRA 101: Easy Steps To Opening Your Retirement Account

January 26, 2023 12:11 am CST

Alright, so you're thinking about opening a Roth IRA. That's great news! A Roth IRA is a retirement savings account that offers some pretty sweet tax benefits. Even...

Read more

Best Long-Term Investments In January 2023

January 25, 2023 11:49 pm CST

If you want to secure your financial future, the best thing to do is to invest for the long term. Nowadays, investors can choose from a variety of...

Read more

Crypto.com $25 Crypto Welcome Offer & $25 Referrals

January 25, 2023 2:46 am CST

Find Crypto.com promotions and offers here. Get $25 USD in CRO when you sign up with a referral link. Earn up to 12% per annum paid weekly in...

Read more
Next Post
Checking Writing

Best High Yield Reward Checking Rates Nationwide January 2023

Best Online Brokerages for Stock Trading & Investing of January 2023

Best Online Brokerages for Stock Trading & Investing of January 2023

Best eGifter Deals and Promotions on Gift Cards of January 2023

Leave a Reply Cancel reply

Editorial Disclaimer: Opinions expressed here are author's alone, not those of any bank, credit card issuer, hotel, airline, or other entity. This content has not been reviewed, approved or otherwise endorsed by any of the entities included within the post.
Disclaimer: These responses are not provided or commissioned by the bank advertiser, credit card issuer, hotel, airline or other entity. Responses have not been reviewed, approved or otherwise endorsed by any of the entities included within the post. It is not the bank advertiser's or any other entity's responsibility to ensure all posts and/or questions are answered.

Your email address will not be published. Required fields are marked *

Chase Business Complete $300 Bonus Chase Business Complete $300 Bonus Chase Business Complete $300 Bonus
ADVERTISEMENT
TD Bank $300 Bonus TD Bank $300 Bonus TD Bank $300 Bonus
ADVERTISEMENT
ADVERTISEMENT
Get new posts by email:

Featured Articles

M1 Finance

Best M1 Finance Bonuses: $50, $500, $4000, $10000 Offers

January 26, 2023 4:39 am CST
Bank of America

Bank of America Checking Account $100 Bonus Offer – Ends 6/30/23

January 26, 2023 4:37 am CST

Best Axos Bank Bonuses, Promotions of January 2023

January 26, 2023 4:36 am CST

Best Bank Bonuses, Promotions of January 2023

January 26, 2023 11:59 pm CST
Featured Chase Image

Best Chase Bank Bonuses of January 2023 (up to $2000!)

January 16, 2023 11:30 pm CST
BMO Harris Bank

Best BMO Harris Bank Bonuses, Promotions of January 2023

January 16, 2023 11:29 pm CST
Featured Chase Image

Chase Total Checking® Account $200 Bonus Offer [Nationwide] – Ends 4/19/2023

January 16, 2023 10:54 pm CST

J.P. Morgan Self-Directed Investing Up To $700 Bonus – Ends 4/13/23

January 13, 2023 9:39 pm CST

Public.com Bonus: $300 In Free Stock, Up To $10,000 Brokerage Transfer Offers

January 13, 2023 6:51 am CST
U.S. Bank Bonus

U.S. Bank Smartly™ Checking and Standard Savings up to $600 Bonus – Ends 2/7/23

January 26, 2023 4:11 am CST
Best Online Mattress Promotions, Offers, Discounts of 2023

Best Online Mattress Promotions, Offers, Discounts of 2023

January 1, 2023 12:19 am CST

Best Cryptocurrency Bonuses, Promotions of January 2023 (Free Bitcoin & More)

January 25, 2023 12:48 am CST
TD Bank

Best TD Bank Bonuses, Promotions of January 2023

December 31, 2022 11:50 pm CST
Robo Advisors

Best Robo-Advisor Promotions, Offers of January 2023

December 31, 2022 11:50 pm CST
HSBC Bank

Best HSBC Bank Bonuses, Promotions of January 2023

December 31, 2022 11:49 pm CST
Best Money Transfer Services Intro

Best Money Transfer Service Promotions, Bonuses, Offers of January 2023

January 26, 2023 4:15 am CST
Brokerage and Investing Promotions from moneysmylife

Best Stock Broker & Investing Promotions, Bonuses of January 2023

January 13, 2023 9:59 pm CST
Best Free Checking Account Offers (No Monthly Fees) of January 2023

Best Free Checking Account Offers (No Monthly Fees) of January 2023

January 4, 2023 3:47 am CST
The Best Referral Deals on moneysmylife

Best Referral Programs, Offers, Deals to Make Money – January 2023

December 31, 2022 10:55 pm CST
Chase Bank

Chase Business Completeâ„  Banking $300 Sign-Up Bonus [Nationwide] – Ends 2/16/23

January 26, 2023 4:14 am CST
TradeStation

TradeStation Promotions: $150 Cash Or $150 Bitcoin Offer

December 18, 2022 1:07 am CST
Bank of America $100 Checking Bonus Bank of America $100 Checking Bonus Bank of America $100 Checking Bonus
ADVERTISEMENT

Search by Categories

  • Bank Promotions
  • Banking
  • Credit Cards
  • Cryptocurrency Promotions
  • Deals
  • Featured
  • Investing
  • Other
  • Referral Promotions

Latest Articles & Updates

Tracfone: Highest Rewards Code Available (UWMT-8427) – Ends 2/19/23

January 27, 2023 5:28 am CST

Givers Review: Savings & Support Platform For Family Caregivers To Access Benefits and Resources

January 27, 2023 4:05 am CST

Dave.com Review: One-Stop Shop For Managing Your Money And Avoiding Overdraft Fees

January 27, 2023 2:41 am CST

Discovery Puppy Bowl: Kitty Halftime Show Sweepstakes | Win $5,000 Cash – Ends 2/13/23

January 27, 2023 12:29 am CST

Samuel Adams: Cold Snap Day Sweepstakes | Win $10 e-Gift Card – Ends 2/2/23

January 27, 2023 12:25 am CST

Newsletter

Get new posts by email:

Recent Articles

Freebie: Free $100 Dick’s Gift Card & Free Pickup For Members With Select Peloton Purchase

January 27, 2023 12:19 am CST

Chance To Win $25,000 With Wealthfront Sweepstakes – Ends 02/18/2023

Chance To Win $25,000 With Wealthfront Sweepstakes – Ends 02/18/2023

January 27, 2023 12:08 am CST

Topics

Categories

Banking Bank Promotions Credit Cards Cryptocurrency Promotions Deals Featured Investing Other Referral Promotions

*Advertiser Disclosure: The credit card and banking offers that appear on this site are from credit card and banking companies from which MoneysMyLife.com receives compensation. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). MoneysMyLife.com does not include all credit card and banking companies or all available credit card and banking offers. This content is not provided or commissioned by the bank advertiser. Opinions expressed here are the author’s alone, not those of any bank, credit card issuer, hotel, airline, or other entity. This content has not been reviewed, approved or otherwise endorsed by any of the entities included within the post. This site may be compensated through the bank advertiser Affiliate Program.

© 2022 MoneysMyLife. All rights reserved.

  • About
  • Advertiser Disclosure
  • Disclaimer
  • Privacy
  • Terms
  • Contact
No Result
View All Result
  • Home
  • Bank Bonus
    • Best Bonuses
      • Best Bank Bonuses
      • Chase
      • Bank of America
      • U.S. Bank
      • BMO Harris
      • TD Bank
      • HSBC
    • Best Bank Bonuses w/o Direct Deposit
    • Best Free Checking Accounts
    • Best Free Business Checking Accounts
    • Best Savings Rates
    • Best CD Rates
    • All Bank Bonuses
  • Investing
    • Best Brokerage Offers
    • Best Real Estate Offers
    • Best Robo-Advisor Offers
    • Best Stock Brokers
    • All Investing Offers
  • Crypto
    • Best Crypto Offers
    • All Crypto Offers
  • Deals
    • All Deals
    • Referral Deals
    • Best Referral Deals
    • Best Contests & Sweepstakes
    • Best Freebie Deals
  • Credit Cards
    • Best Credit Card Bonuses
    • All Credit Card Deals
  • Advertiser Disclosure

© 2022 MoneysMyLife. All rights reserved.

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In
This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.