7 Short Term Investments You Need to Know

August, 12 2020

Do you have a little cash in your bank account and you will need to access it in under a year? We show you some short term investments this year that could be interesting for you.

Maybe everyday you ask yourself where can I invest it short-term for a better return than my checking account? Lucky for you, there are plenty of good short term investment options that can earn you interesting returns.

Discover how to open your own business


1. What are the risks of short term investments?

2. What are some short term investments?

3. Short Term Investments You Need to Know

But first things first, what is a short term investment and how is it different from a regular or long term investment?

A short-term investment, sometimes called a temporary investment or marketable security, is an investment that will yield its returns typically in less than five years (or in some cases within a year). With a shorter investment period, your goals will be different - for example, short-term investors may use the strategy to take advantage of rising interest rates over a short period. 


"The first rule of investment is don’t lose. And the second rule of investment is don’t forget the first rule. And that’s all the rules there are"

- Warren Buffett

1. What are the risks of short term investments?


short term investments less than a year


So safety comes at a cost. You likely won’t be able to earn as much in a short-term investment as you would in a long-term investment. If you invest for the short term, you’ll be limited to certain types of investments and shouldn’t buy riskier kinds.

Also, you may be charged higher brokerage commission fees. In addition, if you are a speculator, you will have to pay many more transaction fees for all that active trading. Inflation can also be a concern, especially with securities such as short-term bonds. 

Another disadvantage to short-term investing is that it's not always possible to earn profits in a short period. Many investments may fall in the short term but grow steadily over the long term with increasing returns. 


If you would like to know more about best investment opportunities, this article is for you: Finding The Best Investment Opportunities


Start up your own day-to-day service business


2. What are some short term investments?

So, what are your options for short-term investing, and what are the best short-term investments to maximize profits and minimize risk? 

There are various short-term investment accounts available to you, and which is right for you depends on your particular situation and preferences.


  • Certificates of Deposit (CDs)

When you deposit money in a CD account, you agree to leave it there for a certain period; it could be a matter of months or even years. The longer the maturity period, the higher the interest.

At the end of that maturity period, the bank releases your funds plus the agreed-upon interest. So if you know you only need to park your money for six months or a year, you can choose the length of maturity that best suits your needs, with full assurance that you’ll get your money back upon maturity.

Of course, life isn’t always predictable. If you have an emergency and you need to pull your money out early, you should pay some penalties. So, don’t put your emergency fund in a CD.



  • Blue Chip Stocks

According to Investopedia, a blue chip is a nationally recognized, well-established, and financially sound company. Blue chips generally sell high-quality, widely accepted products and services.

They are known to weather downturns and operate profitably in the face of adverse economic conditions, which helps to contribute to their long record of stable and reliable growth.

Coca-cola or Procter & Gamble are two good examples of blue chip companies and conservative investors with a low risk profile will usually go for their stocks.


  • Municipal Bonds

Municipal bonds are debt instruments issued by city and local governments. They are normally used to raise money for capital investment in local projects such as schools, streets and highways, bridges, hospitals, public housing, and utilities.

Municipal bonds bear interest which is paid at either a fixed or variable rate, depending on the terms of the bond. The issuer of the bond receives a cash payment from the investor in return for agreeing to pay the scheduled rate of interest to the bondholder. Interest is paid over an agreed upon period of time that varies from a few months to years.




Blue chip

Municipal bonds










Once the CD matures.

2-3 years

In regular installments

Rate of return

Best CD rates are 2%-3% 

Currently 8%-12%

Currently 2%-3%



3. Short Term Investments You Need to Know


If you are thinking about starting your with low investment and high profits, you can consider buying a franchise.

Buying a franchise means that the franchisee has already an established brand to work with (including the marketing, trainings, business plan, etc..) We could say that it comes with the main things established.  Below you will find out why having a franchise business model is a great idea and some examples are Tasty Poke, CruiseOne, Kumon or Jeff.


Franchise tasty poke bar 500x309 logo jeff kumon franquicia
Investment From 20,000$ From 9,800$ From 25,000$  From 15,000$


Jeff is a technological company that has revolutionized the franchise industry combining the online and offline world. Daily services are provided through their supper app in a refreshing and efficient way, Jeff is the architect of The Good Good Life. What is "The Good Good Life?" well, the process is at follows: users enjoy their life by doing whatever they feel like while Jeff takes care of the daily tasks people are not fund of doing. All in just one click. Isn't it amazing?! You can find different options and investment between their specialities:

No more washing & no more dry cleaning!  WHAT? They created a new and innovative business model  in which people do not have to wash and iron, they do not have to go anywhere! Mr Jeff performs for its clients the service of laundry at home, without them having to go to the point to take and pick up his clothes! This services can be hired through their app and website!

short term investments 2020

Smart beauty is based on salons focused on day-to-day services, which translates into high recurrence, offering the services that people need most, with simples the processes and management the franchise business. 

There is no need to depend on a hairdresser, the attendance will increase by 26% and double the productivity in relation to a traditional salon.


One of the most profitable franchise boutique gyms. They offer the most demanded activities, creating a social environment in a unique space away from the noise and gray color of the city. Their centers are flexible, sociable, low cost and motivational; it's the perfect solution.


short term investment with high return

Relax Jeff franchises offer short massage services with a focus on the experience of the user. It's somewhere they can go to take a break from their day.


best short term investment less than a year

Discover how to open your own business


Subscribe and stay up-to-date

No spam, we promise! We'll only send you important emails that you're interested in

Subscribe and stay up to date

¡Sin spam, lo prometemos! Solo te enviaremos correos importantes y de tu interés

Subscribe and stay up-to-date