Which are better short-term investment options for FYI 2021?

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Bibek Dai
Professional Blogger | Digital Marketer | Trainer |Hi, Welcome. I am Bibek Sapkota, the founder of TheBloggersPage. I have been playing around 9 years over the web as a SEO specialist, Blogger, Internet researcher & Digital Marketer. ​

Most investors prefer short-term investment plans as they find them easy to manage and convenient to fulfill their immediate needs. However, a shorter investment period might also reduce the earning potential of your investment as it will accumulate interest for a limited period. To tackle this issue, we have shortlisted the best short term investment options in 2021 that will also help you generate enough revenue:

Recurring Deposits 

A recurring deposit helps you to invest a small part of your investment every month and helps you create a corpus big enough to handle your short-term fund requirements. It provides a much higher interest rate than a savings account but its returns are slightly less than FDs as it does not earn interest on a lump sum deposit as an FD does. 

The RD tenor can be anywhere between 6 months and 10 years according to your investment needs. The RD interest rate can vary from 4.5% to 6.5% depending on the financier you choose for investing. 

Liquid debt funds 

Liquid debt funds are ideal short-term instruments as they provide high liquidity options to the investors. The maximum tenor for your investment in 91 days i.e. 3 months and the return rate is much higher as compared to a savings account or RDs. 

Post Office Time Deposits 

Post Office Time Deposits i.e. POTDs offer you the flexibility of choosing a tenor from 1, 2, 3, and 5 years as per your financial needs and plans. As a result, you can use it for attaining your short-term investment goals as well. The highest interest rate that you will get currently on this deposit scheme is 6.7% (for a tenor of 5 years). It is safe to invest in this deposit scheme as it is backed by GOI. 

Fixed deposits 

Fixed deposits will grow your investments at a high rate and they can be used for both short-term and long-term financial gains due to the wide tenor range they provide. If you are interested in an FD plan that provides high returns with a flexible investment period then you can look at the fixed deposit plans of Bajaj Finance. 

The fixed deposit interest rates from Bajaj Finance are as high as 7.25% and you will also be able to choose a tenor between 12 and 60 months as per your investment plans and requirements. The other interesting features of this deposit scheme are explained below:

  • Benefits for senior citizens 

Senior citizens will get a 0.25% higher rate of interest than others. They can use this higher interest rate to earn sufficient returns to manage their plans and expenses post-retirement. 

The option of getting regular interest returns through monthly, quarterly, six-monthly, and yearly interest payouts make it easy for them to pay their home rent, electricity bills, and medical expenses. 

  •  Easy liquidity 

Bajaj Finance Fixed Deposit plans offer high liquidity to the investors. This is because the deposits can be withdrawn anytime upon completion of the initial months from the deposit date. 

Also, the option of applying a loan up to 75% of the FD value without any collateral enables you to use your FDs as an emergency fund. 

  • Multi-deposit facility 

If you are not sure of the tenor that you must select for your short-term plans then you can also use the multi-deposit facility of the Bajaj Finance FD scheme. According to this facility, you can invest in more than one FD at once and the investment period can be different for each deposit. 

This means that you can set a tenor between 12 and 60 months for every deposit and this facility even enables you to invest in both the FD types (cumulative and non-cumulative) at once. As a result, you can easily create a chain of liquidity points that will allow you to manage your short-term fund requirements with ease. 

Also, the online investment option lets you start an FD by using an online FD form and you will even get a 0.10% higher FD rate for choosing this option. It is safe to invest in its FD plans as they have been regarded as highly safe and stable instruments by credit rating organizations such as CRISIL and ICRA. Therefore, it is certainly worth investing in the FD scheme of Bajaj Finance.

Short-term investment options are the ones that will help you to achieve your short-term financial goals. However, it is not easy to pick the instrument that can help you meet your short-term needs as there are many options available in the market. You can invest in RDs, POTDs, or Liquid Debt Funds as all of them are designed to help you attain your short-term financial objectives.

However, if you want to invest in an instrument that provides sufficient returns and convenience of choosing a flexible tenor then you can invest in fixed deposit plans from Bajaj Finance. The high FD interest rate, flexible tenor ranging from 12 to 60 months, multi-deposit facility, and easy investment options makes it one of the best instruments in 2021.

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