September 17, 2024

Analytical Business Tactics

Long Term Benefits of Investment

5 Best Short-Term Investments In August 2024

9 min read
5 Best Short-Term Investments In August 2024

Editor’s Note: APYs listed in this article are up-to-date as of the time of publication. They may fluctuate (up or down) as the Fed rate changes. CNBC Select will update as changes are made public.

There are many good reasons why you would want to invest your money in the short term. Perhaps you intend to use that cash to buy a new car, fund a first-time mortgage, plan a wedding or simply want to build an emergency fund.

For all these goals, cash needs to be put someplace where it’s safe and accessible on a whim. Enter short-term investment vehicles: the perfect place to stash the cash you’ll need within the next five years.

Though short-term investments typically come with lower rates of return than long-term investments, they can diversify your income and offer flexibility when you need it. Short-term investments stand out for being highly liquid, stable and relatively low risk, so you can count on your money being there when you need to withdraw it quickly at low (or no) cost.

Best short-term investments

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High-yield savings accounts

LendingClub High-Yield Savings

LendingClub Bank, N.A., Member FDIC

  • Annual Percentage Yield (APY)

  • Minimum balance

    No minimum balance requirement after $100.00 to open the account

  • Monthly fee

  • Maximum transactions

  • Excessive transactions fee

  • Overdraft fees

  • Offer checking account?

  • Offer ATM card?

UFB Portfolio Savings

UFB Portfolio Savings is offered by Axos Bank ® , a Member FDIC.

  • Annual Percentage Yield (APY)

    Up to 5.15% APY on any savings balance; add UFB Freedom Checking and meet checking account qualifications to get an additional up to 0.20% APY on savings

  • Minimum balance

    $0, no minimum deposit or balance needed for savings

  • Fees

    No monthly maintenance or service fees

  • Overdraft fee

    Overdraft fees may be charged, according to the terms; overdraft protection available

  • ATM access

    Free ATM card with unlimited withdrawals

  • Maximum transactions

Marcus by Goldman Sachs High Yield Online Savings

Goldman Sachs Bank USA is a Member FDIC.

  • Annual Percentage Yield (APY)

  • Minimum balance

  • Monthly fee

  • Maximum transactions

    At this time, there is no limit to the number of withdrawals or transfers you can make from your online savings account

  • Excessive transactions fee

  • Overdraft fee

  • Offer checking account?

  • Offer ATM card?

CDs

Ally Bank® CDs

Ally Bank® is a Member FDIC.

  • Annual Percentage Yield (APY)

  • Terms

  • Minimum balance

  • Monthly fee

  • Early withdrawal penalty fee

    High Yield CDs and Raise Your Rate CDs have early withdrawal penalties that vary based on your CD term. With the No Penalty CD, withdraw all your money any time after the first 6 days following the date you funded the account and keep the interest earned with no penalty.

Synchrony Bank CDs

Synchrony Bank is a Member FDIC.

  • Annual Percentage Yield (APY)

  • Terms

    From 3 months to 60 months

  • Minimum balance

  • Monthly fee

  • Early withdrawal penalty fee

    There may be an early withdrawal penalty if you withdraw funds from the principal prior to the CD maturity date (the last day of the CD term). The penalty is applied to the amount of principal withdrawn (there’s no penalty on interest). For the No-Penalty CD, early withdrawals are not permitted within the first 6 days after account funding. Following that, only withdrawal of the entire balance is allowed.

APYs are subject to change at any time without notice. Offers apply to personal accounts only. Fees may reduce earnings. For CD accounts, a penalty may be imposed for early withdrawals. After maturity, if your CD rolls over, you will earn the offered rate of interest for your CD type in effect at that time.

Money market accounts

Ally Bank® Money Market Account

Ally Bank® is a Member FDIC.

  • Annual Percentage Yield (APY)

  • Minimum balance

  • Monthly fee

  • Offer checks?

  • Offer debit/ATM card?

Sallie Mae Money Market Account

Sallie Mae is a Member FDIC.

  • Annual Percentage Yield (APY)

  • Minimum balance

  • Monthly fee

  • Offer checks?

  • Offer debit/ATM card?

Government bonds

Treasury bills

Fidelity Investments

  • Minimum deposit and balance

    Minimum deposit and balance requirements may vary depending on the investment vehicle selected. No minimum to open a Fidelity Go® account, but minimum $10 balance according to the investment strategy chosen

  • Fees

    Fees may vary depending on the investment vehicle selected. Zero commission fees for stock, ETF, options trades and some mutual funds; zero transaction fees for over 3,400 mutual funds; $0.65 per options contract. Fidelity Go® has no advisory fees for balances under $25,000 (0.35% per year for balances of $25,000 and over and this includes access to unlimited 1-on-1 coaching calls from a Fidelity advisor)

  • Bonus

  • Investment vehicles

    Robo-advisor: Fidelity Go® IRA: Traditional, Roth and Rollover IRAs Brokerage and trading: Fidelity Investments Trading Other: Fidelity Investments 529 College Savings; Fidelity HSA®

  • Investment options

    Stocks, bonds, ETFs, mutual funds, CDs, options and fractional shares

  • Educational resources

    Extensive tools and industry-leading, in-depth research from 20-plus independent providers

Charles Schwab

  • Minimum deposit and balance

    Minimum deposit and balance requirements may vary depending on the investment vehicle selected. No account minimum for active investing through Schwab One® Brokerage Account. Automated investing through Schwab Intelligent Portfolios® requires a $5,000 minimum deposit

  • Fees

    Fees may vary depending on the investment vehicle selected. Schwab One® Brokerage Account has no account fees, $0 commission fees for stock and ETF trades, $0 transaction fees for over 4,000 mutual funds and a $0.65 fee per options contract

  • Bonus

  • Investment vehicles

    Robo-advisor: Schwab Intelligent Portfolios® and Schwab Intelligent Portfolios Premium™ IRA: Charles Schwab Traditional, Roth, Rollover, Inherited and Custodial IRAs; plus, a Personal Choice Retirement Account® (PCRA) Brokerage and trading: Schwab One® Brokerage Account, Brokerage Account + Specialized Platforms and Support for Trading, Schwab Global Account™ and Schwab Organization Account

  • Investment options

    Stocks, bonds, mutual funds, CDs and ETFs

  • Educational resources

    Extensive retirement planning tools

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Bottom line

Short-term investment vehicles are a smart choice for those who are looking to prioritize stability and accessibility when it comes to their money, rather than the highest return. In addition to being highly liquid, most accounts on this list are FDIC-insured so your investments are protected. And you have options, from a high-yield savings account, CD and money market account, to government bonds and Treasury bills.

Why trust CNBC Select?

Editorial Note: Opinions, analyses, reviews or recommendations expressed in this article are those of the Select editorial staff’s alone, and have not been reviewed, approved or otherwise endorsed by any third party.


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