Short-term investment plans and long-term investment plans are the two primary kinds of investing. In addition, a short-term investment plan is a good choice for individuals who do not want to wait a long time before seeing their money grow or for those who have short-term financial goals, as such plans are designed to satisfy immediate financial needs. It allows you to invest your hard-earned money without locking it up for an extended period, allowing you to maximize your return on investment. In this article, we have listed safe investment options with high returns in the UAE.
Savings Account
Savings accounts, which are popular among the majority of people, offer a high level of liquidity. It is possible to withdraw money from a savings account in a hassle-free way, at any time and from any location. On the other hand, banks typically give a return of 4 to 7 percent on a savings account.
Liquid Funds
A short-term government certificate or short-term security of deposit is essentially a mutual fund that invests your hard-earned money. Most importantly, investors have the option of taking out their cash whenever they choose without incurring any fees. Your emergency money should never be placed in liquid funds, as the redemption process can take up to two or three working days.
Fixed Deposits
This is one of the most excellent alternatives for investing short-term that is accessible in the United Arab Emirates (UAE). Investments in FDs are safe, and you may place your money in them for up to ten years. This financial instrument does not lend itself well to quick withdrawals. Thus it is recommended that investors wait until their FD has matured before withdrawing their money.
Recurring Deposits
This option is suitable for people who do not want to invest a large sum of money at once. RD, on the other hand, allows you to invest every month. This type of bank deposit has a minimum term of 6 months, with a maximum of 10 years. However, it is essential to know that the rate of interest received on Reverse Mortgages is subject to taxation.
