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Where to invest in the short term

 Where to invest in the short term

Investing is a complex topic that is best learned gradually. Not every beginner is ready to invest a large amount for a long time. But it is normal to strive to profitably invest money in order to increase your income, to close some needs. It is quite possible to start with small amounts and choose short-term investment programs. They can also bring in a lot of income.


Where to invest in the short term?

Many beginners in investing are sure that if they invest money, then a large amount and for years. But such a notion is erroneous. There are a number of tools that allow you to make short-term investments (from 3 months). Usually they are associated with securities, cryptocurrency. There are also banking products that allow you to quickly earn money. Let's consider where to invest money for a short time in order to win.


Securities (stock market)

The securities market is a good field for making money. True, safe bonds for short-term investments cannot be used, because most of them are bought for a year or more. For quick earnings in the stock market, stocks of young and fast-growing enterprises are best suited.


The advantage of stocks is high returns. Minus - instability and unpredictability. You can double, triple your capital or lose it altogether.


Important! In the short term, an investor's earnings are based not on dividends, but on changes in the stock price. Keep this in mind when choosing investment options.


Cryptocurrency

Cryptocurrency is a relatively new instrument on the market, and therefore the most unpredictable. Who could have known that bitcoin would rise in price to $50,000 per coin? At the beginning of its existence, 10 thousand bitcoins could buy only two pizzas. At the same time, there are many less popular currencies, the exchange rate of which is very unstable. It can take off sharply and also fall sharply.


The advantage of this financial instrument is its high profitability. The downside is that often certain cryptocurrencies fall in price for no particular reason and remain unclaimed for quite a long time (and sometimes forever). Even an experienced investor cannot predict how the situation with the asset you have chosen will develop.


Short term deposits

Short-term deposits are bank deposits with a maturity of three to six months. As a rule, their yield is about 5-6% per annum. Such deposits usually appear in banks once a season or a little less often and are often promotional. For example, Sberbank regularly offers spring and autumn deposits for 3 months with a yield of 5.5-6% per annum. Sometimes you can get a higher rate using a promo code.


Interestingly, some deposits for three months are even more profitable than similar long-term ones. But you have to pay for profit by constantly searching for new offers.

The advantage of short-term deposits is that they are stable. Russia has a deposit insurance system that provides a refund if a credit institution stops working. However, the income from short-term deposits is small, and money can be received only after the expiration of the contract.

savings accounts
Savings accounts differ from deposits in that you can withdraw money from them at any time. However, the yield of such products leaves much to be desired: you will receive 3.5-4%, at best 4-5% per annum. More is possible, but either on a special offer or in second-tier banks.

Low returns are definitely a downside. But you can put up with it if it is important for you to have access to money at any time and often receive interest payments (there are products where interest is paid every month and even every day). Such a tool is used when access to money may be required urgently. For example, if they are going to buy a property, but they cannot find a suitable option.

Cards with interest on the balance
Banks offer many profitable options for issuing cards with interest on the balance. There are very attractive conditions, where the declared yield is about 7-8% per annum. However, things are not so simple with them.

To get the profitability as in advertising, you usually need to fulfill several conditions:

have a certain amount on a bank account (or on a card);
spend from the card from 10 thousand or more per month;
connect some VIP service tariff.
If you constantly use the services of the bank, then it will not be difficult to fulfill the conditions. If you want to issue a card, deposit funds and put it in a closet, nothing will come of it. Read the terms of the contract carefully!


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