12 thoughts on “Where to Park Money for Very Short Term [less than 6 Months]?

  1. Great article Amit. One thought, is short term investment better or long term?

    • Short term is for goals which are close while long term are for goals far away in future. So investment should be according to your goals – Short term investment for short term goals and vice versa!

  2. Interesting article, thanks for sharing the information. Can you suggest if it is advisable to park the money from FD’s to Liquid funds for a horizon of one year. As I keep the FD’s for any contingencies but now since the rates of FD’s have gone down so don’t want to stay invested and looking for some good options. Money will be invested on my wife’s name who’s income is not taxable as on date.

    • Thanks for appreciation! Bank FDs and Liquid funds follow similar pattern. As the returns of Bank FDs are coming down so would for Liquid Funds. You can move some money in Liquid or Arbitrage Funds.

      Even if you invest in your wife’s name the income is going to be clubbed with yours! Had done a Post on Emergency Fund which might be of help – Where should you Invest your Emergency Fund?

  3. Good comparison. Mostly because of laziness people let money stay in bank account itself .

  4. Hi Amit, I have 20 lakhs available for investment for a short term – exactly 6 months. I also have my KYC registered on CAMS and KARVY and have SIP’s in MF’s such as Birla, Tata, HDFC and SBI. Can you please guide me where to park this sum so that I can get good interest rate and the money available for withdrawal by Nov 2016.?
    Also i have tried with my banks for an FD but as I understand its not allowing me to open FD for a period of 180 days although they post on the website the interest rate is 6.5 % but not allowing to open online.
    Many thanks to assist.

  5. […] Also Read: Where to Park Money for Very Short Term [less than 6 Months]? […]

  6. […] you are in 30% tax bracket then it makes sense to have some money in savings account yielding higher interest rates than rush for short term Fixed […]

  7. great calculations.

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