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9 Safe Short-Term Investments With High Yields

Short-Term Investments

Short-term investments can provide stability and modest returns without the risk of long-term investments. In this post, we’ll explore nine safe short-term investments with high yields. We’ll be looking at a variety of options, including money market accounts, certificates of deposit (CDs), and Treasury bills. So whether you’re looking for a short-term investment to tide you over until payday or a higher yield investment option, we’ve got you covered.

Money Market Accounts

Money market accounts (MMAs) are one of the safest short-term investments available. An MMA is a type of savings account that typically offers a higher yield than a traditional savings account. The interest you earn is compounded daily and can be withdrawn without penalty. Many MMAs are also insured by the FDIC up to $250,000 per depositor, so you can rest assured your money is safe.

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High-yield savings account

A high-yield savings account is a type of savings account that pays a higher rate of interest than a standard savings account. This type of account is perfect for short-term investments, as you won’t need immediate access to your funds. Plus, many high-yield savings accounts offer no monthly fees and no minimum balance requirements. That means you can earn a high yield on your investment without having to worry about penalties or extra charges.

Certificate of deposit (CD)

A CD, or certificate of deposit, is a type of short-term investment offered by banks. It’s a deposit that you make for a set amount of time, typically between three and six months, and in return you earn a fixed interest rate. Since CD’s are FDIC-insured, they’re a safe investment option with relatively high yields. This makes them perfect for those looking for short-term investments with minimal risk. If you’re interested in opening a CD, be sure to shop around and compare interest rates at different banks to find the best deal.

Treasury bills

The Treasury bills, also known as T-bills, are a type of short-term investment issued by the U.S. government. They have a fixed interest rate and a maturity date, which is typically 4, 13, 26, or 52 weeks from the issue date. T-bills are considered very safe investments since they’re backed by the full faith and credit of the U.S. government. In addition, they have some of the highest yields of any investment class. For these reasons, T-bills are a popular choice for short-term investors. You can buy them directly from the government or through a broker.

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Municipal bond funds

Municipal bond funds are a great choice for short-term investors looking for stability and high yields. Municipal bond funds are backed by the full faith and credit of the US government, so they’re considered very safe investments. In addition, the interest rates offered on municipal bond funds are typically higher than those on other types of short-term investments. One downside to municipal bond funds is that they can be more volatile than some other options, so it’s important to carefully research any fund you’re considering investing in.

Roth IRA

A Roth IRA is a special type of investment account that allows you to save for retirement while paying little to no taxes on your contributions. Since you’re investing for the long term, Roth IRAs are a great option for short-term investments. You can choose from a variety of investment options, all of which come with different levels of risk and reward. Roth IRAs are especially beneficial because they offer the tax-free growth and withdrawals in retirement. This means that you won’t have to worry about paying taxes on your earnings, which can really add up over time. If you’re looking for a safe and tax-advantaged way to invest your money, a Roth IRA is a great option.

Arbitrage Funds

Arbitrage Funds are a type of short-term investment that take advantage of price discrepancies in the market. For example, if Company A is selling for $10 per share on one exchange, but $11 per share on another exchange, an arbitrage fund would buy shares from the first exchange and sell them on the second exchange, making a profit of $1 per share. Arbitrage funds are incredibly safe and provide high yields, making them a popular investment choice for those looking for short-term stability and high returns.

Peer-to-peer loans

Peer-to-peer loans are a great option for those looking for a higher yield without having to take on too much risk. Through a peer-to-peer lending platform, you can loan money to others who are looking for a loan, and in turn, you’ll earn interest on that loan. There are a few different peer-to-peer lending platforms to choose from, but we recommend checking out Lending Club or Prosper. They’re both well-established and have a good track record. Make sure to do your research before investing in peer-to-peer loans, as not all platforms are created equal. And remember, like any investment, there is always some risk involved.

Short-term US government bond funds

When it comes to short-term investments, US government bond funds are a great option. They’re low-risk, offer high yields, and are very easy to manage. With most short-term investments, your money is tied up for a set period of time. But since US government bond funds are backed by the US government, you know that your money is safe and will be there when you need it. Plus, these funds are very liquid so you can easily access your money if needed. Check out some of the best short-term US government bond funds below.


No one wants to tie up their money in a long-term investment that might not pay off. That’s why short-term investments can be such a great option. With a wide variety of choices available, you can find an investment that’s perfect for your needs. And with high yields available, you can rest assured that your money is working hard for you. So if you’re looking for a low-risk way to grow your money, short-term investments are a great option.