Short-term investments, don't miss the chance to make money on small things
Very often we find ourselves with a fairly large sum of money on hand that we might need at any moment and is not suitable for long-term investment.
Because if you buy shares, gold or real estate and you urgently need money, it is not a fact that you will sell your assets at a good price.
This is where the question of short-term investments arises: where can you invest money for a month or two so that you can withdraw it at any time without loss?
The main condition for investments is that there are no strictly defined terms or penalties for early withdrawal are not too high.
Such options exist, they are not very profitable, but they are still better than simply keeping money in a checking account:
| Type of investment | Liquidity level | Profitability percentage |
|---|---|---|
| Current account / cash | Very tall | 0–1% per annum |
| Savings account/demand deposit | High | up to 5% per annum |
| Callable bonds | Average | about 5-7% per annum |
| Stablecoin staking | Average | up to 7% per annum |
A savings account or demand deposit is a special type of savings account from which money can be withdrawn at any time.
Interest on such deposits rarely exceeds 5% per annum in US dollars; rates for national currencies can be an order of magnitude higher.
You can receive money almost instantly, and substantial amounts can generate significant profits. However, don't limit yourself to your bank; if another bank offers more favorable terms, it's better to open a similar account there.
Bonds - as a rule, have clearly defined maturity dates, but there are options when such bonds can be sold early.
For example, if you have a 5-year bond with a 7% annual interest rate, you will receive only 6% interest upon early sale.
It is true that you should choose options not only with the possibility of early sale, but also with the possibility of a quick sale.
Staking stablecoins – very often, the rate for staking stablecoins pegged to the US dollar exceeds the rates for deposits in this currency.
Sometimes you can earn up to 7% on your staked funds, depending on the specific platform where you stake your funds.
However, it's important to keep in mind that any cryptocurrency transactions not only carry risks but also additional exchange fees. High-yield cryptocurrencies for staking .
If you're not impressed by the interest rates on the options offered, try thinking ahead.
Imagine that a portion of your income (including your salary) is regularly deposited into a savings account at 5% annual interest. On average, the amount in this account is equivalent to $10,000. As a result, even with this small amount, the savings accumulate to $500 per year, and $5,000 over 10 years.
This is money that you might not otherwise receive at all, but it is a nice bonus for a vacation trip or a large purchase.
The worst option is to simply keep the funds in a bank account or in cash; even a small profit can turn into a substantial sum over time.
