Investing is one of the good ways to grow your money, but when you are investing for the short term, you want to avoid anything too risky. It will always be a big element of luck involved.
For beginner investors, growing your money in a short time comes down almost entirely to luck, and you can easily lose as much or more than you profit. You are thinking about investing as a way to make short-term gains. It is better to think of investing as a way of making long-term gains.
Short-term investors are making money by trading in and out of stocks over a short period of time rather than buying and holding them for several years. There are five low-risk places to invest your money for triple your money fast the following:
High-yield savings accounts
High-yield savings accounts are available through many online banks. They can afford to pay higher interest rates than brick-and-mortar banks because they have lower operating costs. Some high-yield savings accounts pay upward of a 2% annual percentage yield (APY).
This is the amount of interest our money and will grow my money fast earn every year it remains in the savings account.
Certificates of deposit
Terms can range from a couple of months to 10 years. In exchange for not touching the money, the bank is offering you a higher interest rate than the 0.09% APY you would get with a traditional savings account.
Short-term bond funds
A short-term bond fund is a mutual fund that owns bonds with maturity terms that are usually five years or less. A bond is a loan that you are giving to the company or other entity whose bond you are buying.
It will pay you back the full amount of the bond plus interest by the maturity date. Short-term bond funds’ average annual return can vary from less than 1% to over 3%, according to Morningstar data.
I-bonds
These bonds are backed by the U.S. Treasury and guaranteed to keep pace with inflation. The rate is adjusted every six months thereafter to ensure it keeps up with inflation.
Peer-to-peer lending
Peer-to-peer lending sites enable you to lend money to borrowers just like a bank. But rather than investing all your money into a single loan, you invest small amounts in multiple loans to lower your risk of loss.
Borrowers pay back what they owe you plus interest, usually over three to five years. They could default and you will not get your money back.
