If you have money for the more short term, it is a good bet to put them in high yielding securities. For example, say you have sold a property and have large money at your disposal till you search for a new property, you may want to look at high yielding short term investments until you find a new property to invest. Here are 4 investments ideas, you may consider for the short term.
1. IDFC First Bank Savings Account
IDFC First Bank Savings account offers you an interest rate of upto 7 per cent. This is as good as fixed deposits and in fact better than the interest rate offered by even SBI on its fixed deposits.
One of the other advantages of a savings account is that it gives you tax free income up to Rs 10,000, while fixed deposits do not.
The bank also offers you an accident insurance free cover on death or permanent disability upto Rs 25 lakh. There is also a free airport lounge access in major cities, twice every quarter and Free ATM Transactions at any bank and on any network.
2. Yes Bank Savings Account
Yes Bank too offers a pretty decent interest rate and is a good option, if you have short term investment to deploy. Interestingly. Savings Bank Account balances enables you to withdraw the cash anytime, unlike deposits, where there maybe a charge in case of premature withdrawal.
The interest rate offered by Yes Bank is 6 per cent on balances in the savings account of more than 6 per cent. With the interest as good as fixed deposits, this is not a bad bet at all.
3. Bajaj Finance Deposits
The Bajaj Finance deposit of 1-year is also a good bet, if you are looking at short term investment of less than 1-year. A 12-month deposit fetches you an interest rate of 8 per cent. However, it is important to remember that if there is a possibility that you would break the deposit before 1-year, we would suggest not to go with this deposit at all, as the charges could make the returns lower.
This deposit is safe for 1-year given the strong ratings and the backing of the Bajaj group.
4. Mahindra Finance Fixed deposits
This deposit is also good, if you are looking at short term investment of 1-year. The interest offered is slightly lower at 7.95 per cent. It is important to remember that company fixed deposit attract a TDS, if the amount of interest is more than Rs 5,000.
Senior citizens are entitled to an extra interest rate of 0.10 per cent. These deposits are AAA rated, just like the deposits of Bajaj Finance and are hence safe. Investors should consider this as a safe short term investment idea.
All of the above instruments mentioned would attract tax, except the two savings accounts mentioned above, where the interest earned is exempt from tax to the tune of Rs 10,000. Most of the instruments are safe and also offer a decent interest rate, given that interest rates in the economy have really fallen.