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More Article : The 9 Best Short Term Investments

1. Online Savings Account

Traditional banks pay as little as 0.01% on a savings account. That’s as close to zero percent as you can get.
One option for short-term savings that pay more is to go with an online bank. While the rates are still nothing to brag about, the top online savings accounts today pay about 1.30%. You can see the top current rates here.
Pros

FDIC insured
Funds can be withdrawn at any time
Rates better than a brick and mortar bank
No fees

Cons

Interest rates are still low
Inflation exceeds the rates

Expected Annual Return: 1.30%
Here some high-yield savings account options:

2. Certificate of Deposit

The second option for short-term money is a certificate of deposit. CDs give us a lot more options than a savings account. The term of a CD can range from a few months to more than five years, and the longer the term, the higher the rates.
These higher rates, however, come with added risk. Here’s why.
A CD can be cashed in before it matures. For example, you could invest in a 5-year CD, but decide to withdraw your money after the first year. If this happens, however, most CDs charge a penalty. The amount of the penalty varies by bank and CD product.
As a result, it’s best to keep money in a CD until it matures. For this reason, picking the length of the CD is a critical decision.
So, you end up having this delicate dance—you want a long CD term so that you can make the most interest. But you don’t want to pay a penalty if you take the money out early.
Read More>>> doughroller. net/investing/the-best-short-term-investments/