Ways to park money for short term

I want to know the best possible ways to park money for short duration(6 months-1year) safely, looking for 7-8% after tax return .

Please explain the ways and where and hows of the instrument.

Thanks in advance

7% to 8% return will come with at least some risk as even FDs are providing a 5% return. Thus, to achieve such a return for 1 ear you will have to take on some risk. If you want to take on no risk then opt for some FD, liquid or money market fund and say goodbye to a little higher return. On the other hand if you can take on some risk then opt for some dynamic or corporate bond fund and then there might be chance that you will get the desired returns or you might not, but volatility will be there,


Mere ghar pe

When 10 year govt bonds are yielding 6.4%, you getting 7-8% post tax for 6 months that too safely is like asking for Nirvana :slight_smile:

As SMIFS has already explained in earlier reply, this can only be achieved with additional risk. Apart from avenues which he has explained, only other thing I can add is having saving bank account with some Neo banks (like Niyo) which offers 6-7% on saving bank account for 1-5 lakh amount. This is not tax free, but highest in category. (also this has its own risk)


Real disappointments are the liquid funds, traditional heavens for short term parking. Their returns have dipped to early 3%. This led me to IDFCFIRST bank account which also had advantage of 3:1 account with zerodha. They were offering ~7% at that point of time (not more than ~6m back). And alas, within a few days they slashed it to 5%. My bad!