8 Safe Investments with High Returns – Best Short-Term Investments Plans with High Returns in India, 2023


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Short-term investment plans are liquid investments that give investors the flexibility to earn money and the facility to withdraw when required. Are you looking for any safe and short-term investment plans with a high return? Read on…

Introduction to Short-term Investment Plan?

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 high return investment in India, 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 best investment options in India 2023 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.

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

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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 and best 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.

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Return Rate and Plan Duration of 5 Safe Investments with High Returns in India 2023

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

Top 8 Short-term Investment Plans in India 2023

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

  1. National Savings Certificate (NSC)
  2. Recurring Deposits (RD)
  3. Fixed Deposits (FD)
  4. Corporate Deposit
  5. Short-term Debt Mutual Funds
  6. Unit Linked Insurance Plan (ULIP)
  7. Post Office Monthly Income Scheme (POMIS)
  8. Endowment Plans

Get detailed information on safe investments with high returns 2023 in India 

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.

Features of National Savings Certificate (NSC)

  • 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)
  • NSC premature withdrawal allowed only in special cases

Benefits of National Savings Certificate (NSC)

  • 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.

Features of Recurring Deposits (RD)

  • 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.

Benefits of Recurring Deposits (RD)

  • 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 option in India 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.

Features of Fixed Deposits (FD)

  • 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.

Features of Corporate Deposit

  • 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.

Features of Short-term Debt Mutual Funds

  • 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


It is a protection plan offering dual purpose of investment and insurance. So, you get life cover with these plans along with gaining high returns on your investment. This is because ULIPs invest in the market to generate greater returns.

Features and benefits

  • A portion of the investment is used for investment purpose, while the rest is used for insurance purpose
  • The amount used as investment is mainly invested in debt or hybrid funds
  • Tax benefits are also offered under the plan

Return rate

ULIPs do not have any fixed rate of return in terms of the investment returns you receive. Though the life cover is fixed, the returns depend on the performance of the fund invested in the market.


Any Indian citizen above the age of 18 years is eligible to invest in the plan.

Risk level

The returns received on ULIPs are market-linked. Thus, they are impacted directly by market volatility. Further, ULIPs have a lock-in period of 5-years and so you cannot get the money out during this period. So, everything must be considered before investing in ULIPs.

How to invest

Compare different ULIP policies based on features and benefits and buy it from a reliable insurer online.

7. Post Office Monthly Income Scheme (POMIS)

POMIS is a scheme of investment by the Indian Post services. This monthly scheme allows guaranteed returns and is a low-risk plan.

Features and benefits

  • It comes with a maturity term of 5-years
  • The amount invested can be withdrawn any time after one year
  • However, there is a premature withdrawal charge of 1-2%
  • Money once matured can be reinvested at the end of 5 years
  • The plan can be easily transferred to any of the post offices in India without any charges
  • One can own multiple accounts of POMIS

Return rate

6.6% per annum


Any Indian citizen having required documents and above the age of 18 years is eligible

Risk level

This is a low-risk plan that is backed by government of India

How to invest

Visit your nearest post office and submit a duly filled policy form and KYC document along with photographs. Deposit the amount and initiate the policy.

8. Endowment Plans

These plans are like life insurance policies which offer death or maturity benefits. They are available in large numbers and allow varied features and benefits.

Features and benefits

  • They offer life cover and serve as a good investment tool
  • They allow flexibility as per tenure of the policy, age of maturity, sum assured, as well as premium paying term etc.
  • They also offer tax benefits

Return rate

The return would vary depending on the type of plan chosen as well as the exposure it has in the market volatility.


Eligibility under these plans might vary depending on the policy chosen. However, it ranges between 5 to 60 years

Risk level

These plans are very low in risk and allow fixed, guaranteed returns.

How to invest

  • Look for endowment plans and compare them to get the best returns
  • Buy the plan from a reputed and reliable insurer
  • Complete the KYC requirements and deposit the amount to initiate the plan

Benefits Of Choosing a Safe Investment Option

There are many benefits of choosing the right investment option as it allows investors to achieve their life goals. It not just secures your financial future but also ensures a comfortable life after retirement. Further, if you choose to invest in ULIPs or Endowment plans, you get another benefit of accumulating corpus for any of your financial goals ahead. Moreover, some plans also help the investor with tax saving opportunities.

How To Choose Safe Investment Options?

When it comes to safe investment options, there are a plethora of plans that you can trust as mentioned in the post above. Depending on your need and the purpose of buying the plan, you should invest to get appropriate benefits. However, choosing from the wide number policies available can be confusing at times, so it is better to compare the different options before you and choose the right one. Here are the various factors to base your comparison:

  • Your objectives/goals
  • Your risk appetite
  • How much liquidity requirements you have
  • And your investment horizon


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.

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What are the Safe Short Term Investments with High Returns 2023?

A short-term investment is a temporary or short duration investment that lasts for about 5 years and can be easily converted to cash. Many short-term investments are also available for a short period of three to 12 months. Here are some examples:
1. CDs or Certificate of Deposit
2. Money market accounts
3. High-yield savings account
4. Government bonds
5. Treasury bills

Which investment is best for the short term in India 2023?

Here are some best short term investments policies in 2023 in India:
1. Bank Fixed Deposits (FDs)
2. Debt Funds For Short-Term
3. Recurring Deposits
4. Money Market Account
5. Debt Instrument
6. Post-office Time Deposits
7. Large Cap Mutual Funds
8. Corporate deposits

What are the advantages of investing in short term investment?

1.One of the best benefits of short term investment is that it offers flexibility to the investor to withdraw money without having to wait for the policies to mature for a long time
2. It allows the investor to make substantial profit in a short duration
3. These policies allow substantially low risk levels

What is the safest investment with the highest return in India?

The High-Yield Savings Accounts and Certificates of Deposit are some of the best and safest investment policies in India with high returns.

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Mar 09, 2022
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PayBima Team
PayBima is an Indian insurance aggregator on a mission to make insurance simple for people. PayBima is the Digital arm of the already established and trusted Mahindra Insurance Brokers Ltd., a reputed name in the insurance broking industry with 17 years of experience. PayBima promises you the easy-to-access online platform to buy insurance policies, and also extend their unrelented assistance with all your policy related queries and services.

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