Investing for the long term often seems like the way to go for bigger profits. However, life can throw unexpected financial challenges our way.
Sometimes, you find yourself in urgent need of money. When that happens, you might have to prematurely withdraw your Fixed Deposits (FD) or other policies.
To avoid this situation, it’s essential to consider both long-term and short-term investment options.
Short-term schemes can be a financial lifeline during challenging times. Here, we explore investment options with one-year horizons that offer attractive returns.
Bank FDs
Bank FDs remain a top choice for many investors. Banks offer FDs for durations ranging from 7 days to 10 years, each with varying interest rates.
Post offices also provide FD options ranging from 1 year to 5 years. Before opting for an FD, make sure to compare interest rates between banks and post offices, and then select a one-year FD that suits your needs.
Corporate FDs
Many companies raise capital by issuing Corporate FDs. These operate similarly to bank FDs.
Companies provide forms for investors, which can often be filled out online. Corporate FDs typically offer higher interest rates than bank FDs.
However, it’s important to note that the risk associated with corporate FDs is slightly higher. Nevertheless, FDs from well-established and highly rated companies tend to carry less risk.
Corporate FDs typically mature between 1 to 5 years, allowing you to choose a suitable investment period as per your convenience.
