If you ask me from my personal experience I feel the best short-term investment is undoubtedly a fixed deposit. This is a low-risk investment option which is free from market fluctuations.
The best thing about fixed deposit is that it offers
short term deposit interest rates
which are some of the highest in the market. As I have a fixed deposit in one of the leading NBFCs I got an interest rate of 8.75% onward on a flexible tenure of 12 to 60 months. Where interest income or profits made on the investment are free from tax up to Rs. 10,000. To save tax on the amount of more than this I can submit Forms 15G and 15H to the lender.
Upon renewal, the top up rate I can avail is 0.25%. While my grandfather who is a senior citizen received an interest rate of 0.35% extra on the base rate.
Rated high on safety and stability with ICRA’s MAAA (stable) rating and CRISIL’s FAAA/Stable rating, so your investments are never at risk. This gave me to confidence to deposit my hard earned money with the lender.
To tell you something more, you can use the
FD Interest calculator India
available online which helps to evaluate the earnings and invest accordingly.