which is the best option for short term saving of money ?
HI please suggest me best option to earn good returns with in short term (say 1 month to 6 month) with good liquidity option, I am bachelor and after expenses and long term savings , i still have some money left every month and i am expecting a very good return for this small amounts(say 3000 to 4000 INR) ,,,i have 3 options , liquid funds, savings bank, FMP's (fixed maturity plans) .....suggest me any of your best choice...
Public Comments
- Too short of term to make any money thru a bank. Maybe stock or lotto...LOL
- You won't make much money anywhere in that short of time. If you need safety then try to find a 6 month CD at any bank. Short term to me means 1 to 3 years. Happy Spring ! : )
- Without putting your money at risk the best options for such a short time frame will be some one of the three items you mentioned. From your options listed you will probably see increased returns in the order you mentioned. Liquid funds will likely have the least return, but completely liquid. A savings bank will also be very liquid but rates can vary from bank to bank. And finally, a FMP will be less liquid thus likely providing the higher return. An FMP can have maturity time frame of 15 days, 30, 90, 180 or even a year or more. Given you need the money it seems in 6 months or less you could probably find an appropriate FMP that will mature within the time you selected. With any of the options the amount you earn won't be very much, but typically when you make a pledge or guarantee to let someone hold your money for a specified amount of time you will receive a slight premium versus a completely liquid account.
