With the market being so unstable, there are many alternatives for investors these days. In this article, we’ll cover the best short term investments and where you should be investing your money today.

Whether you are trying to invest $1,000 or even $100,000, short-term investing allows investors to invest their money and to not be tied up for a long period of time.

While it’s easy to invest in high-risk, high-reward investments, we will talk about the short-term investments that are available to you and right for you depending on your particular situation and season of your life.

Best Short Term Investments

There are a number of short term investments to choose from today. With this list, we will discuss good investments and some of the best investments right now. You may be asking yourself, “which investment is best for someone who is likely to need cash soon?” All of this will be discussed in the following 10 services.

Money Market Accounts

Money Market accounts currently pay a very close APY to one year CDs and have immediate access to funds. With a money market account, you will have access to ATM cards, checks, and deposits. Many people would agree that a money market account is like a savings account but on steroids.

Online Savings Account

Many online banking options will offer online savings accounts for a great solution for a short term investment. Robinhood has teased a 3%, high-interest rating online savings account, but there are many savings accounts offering at least 1.5% today. Most online savings accounts will offer 24/7 online access to funds, the ability to transfer funds to and from other banks, and the ability to direct deposits.

CDs (Certificates of Deposit)

A CD is one of the more widely know short term investment products. Banks will offer a variety of terms for their deposit accounts ranging from 3 to 5 years. CDs operate by allowing the depositors the ability to invest their cash for a specific amount of time. The longer that you invest in a Certificate of Deposit, the higher the yield will be. Unfortunately, if you wish to take the money out of a CD before its maturity date, you will have to pay a fee. While the fee ranges, the fee for early removal of funds is typically equal to 3 months worth of interest.

Peer to Peer Lending

Peer to Peer Lending also known as P2P websites works as marketplaces to connect investors to qualified consumers in need of a small loan. After the investor decides to fund a loan and purchase notes, the investor will receive a monthly income typically between 3 and 8%. Websites such as Lending Club will offer loans ranging from a couple of hundred dollars to over $10,000. P2P lending is one of the best short term investments on the market today.

Best Short term investments

Pay Off High-Interest Debt

While this short term investment strategy is not very appealing to the eyes, one of the best short term investment strategies you can make is to pay off high-interest debt right away. Instead of making 1-15% on short term investments, we highly recommend paying off debt so that you are no longer losing money each month by paying high-interest rates on credit cards.

Cash Back Rewards Offers

Cash Back Rewards Offers is a great short term investment for many individuals. Today, many credit cards offer incredible returns with little no effort on your end. Let’s say you decide to sign up for the Chase Sapphire Preferred, if you spend $4,000 within the first 90 days, you will be awarded 50,000 points. Since the $95 annual fee is waived for the first year, you can earn 50,000 points by just spending your normal monthly budget without paying anything out-of-pocket.

Online Checking Accounts

While an online checking account isn’t necessarily one of the best investment accounts, online checkings accounts serve short-term investment needs. Most online checking accounts will offer a guarantee on your money up to $250,000, offer a small, risk-free return, and are a completely hassle-free investment.

ETFs and Short-Term Bond Funds

Short-term bonds and ETFs are products that are typically managed by a professional financial advisor. You will need a brokerage account like Robinhood, Betterment, or TD Ameritrade to get ETFs or Short-Term Bond Funds. While bonds aren’t as stable as money markets, they do typically offer a higher yield.

Municipal Bonds

Municipal bonds are riskier than Treasury investments, but a majority of municipalities do not default on their bonds. The more risk is known as “interest rate risk”. In a low-interest-rate environment, when the interest rates rise, the value of the bond decreases in order to compensate for this action.

Roth IRA

Since Roth IRAs are funded with after-tax income, you are free to withdraw money and any contributions (not the earnings on those contributions) at any point that you would like. Within a Roth IRA, you get the ability to withdraw funds and potentially higher rates of return.

Related: Roth IRA vs IRA