If you are highly liquid for the next few months and planning to look at different investment options with decent returns for the short term, from one month to one year here are a few options.

Yes Bank Savings Account

Those sitting on high amounts of cash can take advantage of this savings account. Interest on savings bank account is exempt up to Rs 10,000 and the interest rate is calculated on the average daily balances.

Fixed Deposits of State Bank of Bikaner and Jaipur

For a slightly longer duration of above 180 days, you can consider the fixed deposits of State Bank of Bikaner and Jaipur. The Interest rates on the same is 8.25 per cent from 180 days to one year. Not a bad rate of interest for a shorter duration.

SBI Short Term Bond Fund

The SBI Short Term Bond Fund has given a return of almost 3.33 in three months. The one year return has been more than 10 per cent. It's important to remember that there is an exit load, if one sells the fund before 90 days. Good to buy at the current levels for a time frame between 3-6 months.

Canara Bank Fixed Deposits

The Canara Bank Fixed Deposits offer an interest rate of 8.25 per cent for deposits ranging between 181 to 270 days. The deposits are a good buy for those planning to invest slightly into the medium term.

Conclusion

It's always a good idea to look at returns and liquidity before investing. Most of the schemes mentioned above offer good liquidity and are relatively secure. Bank deposits can give you a slightly better liquidity as compared to mutual fund schemes.

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