Short-Term Investment Options in India with High Returns in 2022

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Short-term investment plans are liquid investments which give investors flexibility to earn money and the facility to withdraw when required. Are you looking for any short-term investment plans?

5 Short-Term Investment Options in India with High Returns in 2022

An investment that you make or an asset that you hold for a short duration to earn good returns and to achieve any immediate goals and objectives is called a short term investment. Though, people generally plan for  long-term investments to fulfill their long-term future planning and ignore the financial requirements to support their short-term or immediate objectives. To ensure a balanced investment, it is important to include both long and short-term investment plans with high returns in India in your portfolio so that your immediate and future needs can be fulfilled well.

However, whether it is a short-term investment opportunity or a long-term savings plan, it is very important to choose the right platform or the right investment options so that the hard-earned money of yours could fetch lucrative returns. If you are confused about investing on a short-term plan to fulfill your immediate investment needs, here we are bringing you some of the very best options in this blog.

Also Read: Long Term Investment Plans in India

But before that lets understand the term short-term investments and its need.

What is a short-term investment plan and why is it necessary?

As already discussed above, investments in India are divided into short and long term investments. Now, a short-term investment is the one that is done for a  short period of time, generally for one year or two. This investment can be used for various purposes like buying an asset, going for a holiday, and so on. In India, there are many worthwhile short term investment plans which are available for a short duration of a few months or one or two years that can be utilized to make quick profits.

Below are some lucrative short-term investment plans that are available to Indian citizens.

Top 5 Short-Term Investment Plans in India with High Returns 2022 

  • Recurring Deposits (RD)
  • Fixed Deposits (FD)
  • Corporate Deposits (CD)
  • Debt Mutual Funds
  • National Savings Certificate (NSC)
Short-Term Investment Return Rate Plan Duration
National Savings Certificate (NSC) 6.80% 5 Years
Recurring Deposits (RD) 4 -6% 6 Months to 10 Years
Fixed Deposits (FD) 2.5 -5.5% 7 Days to 10 Years
Stock Market 10 – 100% 1 Month to 5 Years
SIP in Equity Mutual Funds 8 – 15 % 6 months to 5 years
Short-term Debt mutual funds 8 – 11 % 6 months to 3 years

 Let us take up the top 5 short-term investment Plans in India 2022 in details –

1. National Savings Certificate (NSC)

NSC is a low-risk tax-saving scheme available with the post-offices across India for short-term investment. This is one of the best saving plans for short-term backed by the Government of India and assures fixed return on investment. Currently, the scheme is available at 6.8% rate of interest per annum, which is subject to vary periodically as per the directions of the government.


  • Minimum investment – Rs.1000
  • Maximum investment – no max. limit
  • Interest Rate – 6.8%
  • Lock in tenure – 5 years
  • Tax Benefits – Up to Rs.1.5 lakh (as per Section 80C of Income Tax)


  • The plan offers fixed return on investment.
  • Offer Tax benefits under section 80C.
  • Available at an initial investment of Rs 1,000.
  • The Plan is available with a maturity period of 5 years.
  • No TDS is deducted so the insured can obtain full value at maturity.


2. Recurring Deposits (RD)

RD is another lucrative short-term savings option that can be used to earn good returns on your investment.  This high interest scheme allows investors to earn a fixed amount of interest till maturity on the money invested. To open a recurring deposit account, you can use the net banking facility of your savings account. Here, you must mention the money that you would save each month, as well as mention the tenure of the RD, while opening the account.


  • Interest Rate – 4 – 6%
  • Minimum amount – Rs.1,000
  • Maximum amount –  No Upper Limit
  • Maturity period – 6 months 10 years
  • The RD interest amount is taxable.


  • The plan offers limited restrictions.
  • Nomination facility is available.
  • Transfer of funds is available from RD to savings account.
  • Allow individuals to save enough for short-term requirements.


3. Fixed Deposits (FD)

FD is another best short term investment plan available for a short duration of 7 days to over 10 years.  Fixed Deposits also offer guaranteed returns on investments. Once the term of the FD matures, it allows withdrawal of the money. Here, you can avail higher rate of interest as compared to savings account or RD. However, FD doesn’t give you the option to have early withdrawal of the money before maturity.


  • Rate of return is 2.5% to 5.5% per annum
  • Duration of FD can vary from 7 days to 10 years
  • The FD interest is taxable.
  • Hassle-free and fixed return investment.


4. Corporate Deposit 

The Corporate Deposits are similar to Fixed deposits and are available with any commercial bank. Here, the single difference is that the corporate deposits are collected by corporations and used for their operations and expansion plans. In the case of Corporate Deposits, you can earn a little higher interest rate as compared to bank FD. However, the default risk is also higher in corporate deposits.


  • Rate of interest is 6% to 8% per annum.
  • Duration of the scheme is 1 to 3 years.
  • Matures within five years.
  • Interest earned in corporate deposit is taxable as per your income tax slab.


5. Short-term Debt Mutual Funds

Another top short-term investment plan is Debt Mutual Funds. In this case, the funds are invested in government securities, corporate bonds, and other similar financial market instruments.  The Short-term Debt Mutual Funds work perfectly for investors who do not want to take risks for their investments and at the same time are willing to earn good returns.


  • Rate of interest is 8% to 11% per annum.
  • Duration of the plan is between 6 months to 3 years.
  • These plans do not attract TDS.
  • Allow low fees for transaction



As discussed, short-term investments are indeed lucrative as they permit the investor to accomplish their short or immediate monetary goals. These short investments allow a person to manage any expense that might crop up near future. There are many short term investment plans with high returns in India which can be used by investors to invest their money wisely and to enjoy fixed returns.

Also Read: TDS on Salary – How it is Calculated and Deducted

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Gayatri Prabhu, Head-Digital Business at Mahindra Insurance Brokers Limited (MIBL) is one those few digital leaders who has the width and depth that is required to execute an ROI driven holistic digital strategy. She cuts through the noise, identifies the critical levers and leads her team to successful execution of the defined strategy. Her core mantra to win new and retain existing customers is: understand the consumer behavior and craft experiences around it.

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