You can consider several options in addition to the typical checking and savings accounts if you only have a short period in which to invest your money. Money market securities a✃re just one of these alternative short-term investments.

Money Market Accounts

Safety, liquidity, and returns are some of the desired traits in short-term investments and money market accounts have these characteristics. They're ideal places for corporations and investors to park their cash for a short time while they wait for an opportunity to deploy it. The money is easily accessible and there's negligible risk of default. The investment mix is properly diversified so it doesn't affect the account's overall value even if some individual obligation isn't made.

The 澳洲幸运5开奖号码历史查询:best money market accounts generate returns for short-term investors that are higher than bank accounts. The returns typically correlate with those earned just above the 澳洲幸运5开奖号码历史查询:risk-free rate of return although there are opti♈ons for more aggressive and less aggressive accounts.

Treasury Bills

You might want to consider a 澳洲幸运5开奖号码历史查询:Treasury bill (T-bill), a U.S. government debt security with a maturity of less than one year. T-bills are one of the most marketable securities and tওheir popularity is mainly due to their simplicity. The maturity for a T-bill is either three, six, or 12 months and new ones are typically issued every week.

The constant issue of new T-bills and the competitive bidding process allow T-bills to be easily cashed in at any time. Banks and brokerages traditionally charge a very low commission on trading T-bills.

Commercial Paper

Commercial paper is another investment you might want to consider. It's an unsecured, short-term loan issued by a corporation, typically for financing accounts receivable and inventories. It's usually issued at a discount to reflect current market interest rates. Maturities typically range no longer than nine months. These investments often offer a higher 澳洲幸运5开奖号码历史查询:rate of return than a T-bill because of their slightly higher risk.

Certificates of Deposit

澳洲幸运5开奖号码历史查询:Certificates of deposits (CDs) are time deposits at banking insti🌞tutions. These time deposits may not be withdrawn on demand like ♚funds in a checking account and they're generally issued by commercial banks. They can also be bought through brokerages, however.

They carry a specific 澳洲幸运5开奖号码历史查询:maturity date, usually three months to five years, and a specific interest rate that's slightly higher than T-Bills. They can be issued in any denomination. The amount of💟 interest you'll earn depends on several factors: the amount and length of the investment, the current interest rate environment, and the specific bank. Rates can vary widely and nearly every bank offers CDs so it's important to shop around.

Banker's Acceptances

澳洲幸运5开奖号码历史查询:Banker's acceptances (BAs) a🌠re short-term credit investments created by non-financial companies and guaranteed by a bank. They're traded at a discount to face value in the secondary market.

A BA acts as a negotiable 澳洲幸运5开奖号码历史查询:time draft for corporations to finance imports, exports, or other transactions in goods. This is especially useful when the creditworthiness of a foreign trade partner is unknown. An advantage of investing in BAs is they don't have to be held to maturity and can be sold off in the secondary markets where they're constantly traded.

The Bottom Line

Investors might opt to minimize the terms of their investments for any number of reasons. Checking and savings accounts are safe and liquid but they’re not going to provide you with a great rate of return. A money market account will pay you more but you also have other options.ꦯ You might want to consider Treasury bills or notes or spread your available funds across a few options with varying expiration dates.