Savings accounts are the most common and versatile short-term investment options. Debit cards linked with savings accounts are perhaps the best feature of savings account investments.
Treasury securities or T-bills are government-backed short-term money-market instruments. The Reserve Bank of India (RBI) issues T-bills under its open market operations (OMO)
Fixed deposits are one of the most popular safe investments available in India. The best part is that you can invest in FDs directly through your bank account.
Recurring deposits are also traditional safe investments. With RDs you can invest small amounts regularly to build a large corpus.
Liquid mutual funds, ultra-short-term funds or money market funds are mutual funds that invest in short-term securities. Liquid mutual funds are great short-term investment options.
Debt mutual funds are the best investment option if you want to invest for less than five years but more than three years. Debt mutual funds offer market-linked variable returns.
Corporate deposits are considered riskier than FDs or debt mutual funds. However, they also offer a higher rate of return. You can invest in corporate deposits for varying durations.
National Savings Certificate is a 5-year deposit scheme that pays interest at the time of maturity. In the meantime, you can trade the certificate with other investors if you need urgent withdrawal.