Best short term investment ideas 2026

If you want to invest your money for a couple of years or even months before withdrawing the cash, you have a few avenues available to you in Australia.

This guide looks at the options you have depending on you how long you can stay invested and how much risk you're willing to take on.

While day-trading is also short-term (and high risk), in this guide we're primarily looking at options that are on the lower end of the risk spectrum.

What are short-term investments?

Short-term investments are any kind of investment that is held for up to 2 years or less.

The goal of any investor is to maximise returns while reducing risks as much as possible. The shorter your timeframe, the harder this job is.

The general gist is that low risk investments typically have low returns, and the opposite is true for high risk investments, though of course your returns are far from guaranteed.

Why invest short-term?

There are many reasons you might only want to invest for a year or 2, or even less.

For example, you might have a big purchase you're saving up for, like a house deposit, or an overseas trip. Rather than having your cash sitting there devaluing (thanks, inflation), you can put it to work and earn some extra income.

In this case, you'll need to look for an investment that is very low or zero risk, because you have very real plans for those funds in the near future.

On the other hand, traders that are able to take on more risk might try to make a quick return on a highly volatile asset, at the expense of potentially losing it all overnight.

These are both short-term investments with potentially very different outcomes.

Cash accounts (savings accounts + term deposits)

If you can't or don't want to take on any risk, you can still have your cash earning interest through a high-interest savings account or a term deposit.

Both options are safe investments and are covered under the Government Guarantee, which means your funds are backed up to a total of $250,000.

As of May 2025, the highest rate for interest earning savings accounts are over 5%, depending on several criteria, while term deposits have rates up to 5.5%.

Savings accounts are great for ultimate flexibility as, unlike with a term deposit, you can add or withdraw funds at any time. On the downside, banks also have the flexibility to change rates at any time.

This is where term deposits are superior. Although your funds are locked in for the duration of the term, the applied interest rate is also fixed.

• Where to invest: With a bank
• Risk level: Low – the first $250,000 is guaranteed by the government
• Liquidity: High
• Minimum: Starting from $0
• Fees: Varies depending on the bank's fees

Short-term exchange traded funds (ETFs)

Exchange traded funds are investment portfolios that are traded over an exchange like stocks. They make it possible to invest in multiple assets at the same time, similar to a superfund.

Traditional ETFs hold hundreds of stocks that make up major markets, such as the S&P 500 or S&P/ASX 200 indices. But these days they can hold almost anything, from bonds to property and even cryptocurrencies.

That means ETFs can range from low risk to very high risk and can be appropriate for short or very long time horizons.

The best short-term ETFs for 2026

• Where to invest: Through an online broker
• Risk level: Low to high – depends on which funds you invest in
• Liquidity: High
• Minimum: $500
• Fees: Annual fund management fee of about 0.05%-2.5% depending on the fund

Invest in ETFs through an online broker

Still not sure which ETF trading platform to go with? Compare your options in the table below by ETF brokerage fees and available assets.

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Finder Score	Brokerage on AU ETFs	Inactivity fee	Asset Class
Promoted 9.6 Excellent Moomoo Share Trading Finder Award	9.6 Excellent	$3.00	$0	ASX shares, Global shares, Options trading, US shares, ETFs	Welcome offer: Enjoy 30 days of $0 brokerage on AU and US stocks and receive up to 38 free shares when you open and fund your account and complete qualifying tasks. Offer ends 30 Nov 2026. T&Cs apply.	Trade major markets with built-in social trading tools.	Go to siteView details Compare product selection Compare	loading
Promoted 8.7 Great eToro Most Loved	8.7 Great	US$2.00		ASX shares, Global shares, US shares, ETFs, Cryptocurrencies	$150 Reward Finder Rewards: Join Finder then sign up as a new eToro customer through Finder, deposit at least $300 and complete a trade within 60 days of account opening to receive a $150 digital Visa gift card. Ends 31 Dec 2026. T&Cs apply.	CFD service. Capital at risk. Trade a range of assets from a single account with access to social trading features.	Go to siteView details Compare product selection Compare	loading
Promoted 9.3 Excellent Tiger Brokers Finder Award	9.3 Excellent	$3.00	$0	ASX shares, Global shares, Options trading, US shares, ETFs	$120 Reward Finder Rewards: Join Finder then sign up to Tiger Brokers through Finder, deposit $2,000 within 7 days and complete a qualifying BUY trade within 20 days to receive a $120 digital Visa gift card. Ends 31 Dec 2026. T&Cs apply. Deposit any amount and receive $20 to trade in Tiger Brokers. Plus 4x zero brokerage trades and no FX fees on the first $2,000 you exchange every month. T&Cs apply.	Trade US, Asian and CHESS-sponsored ASX stocks, China A-class shares, plus US and Hong Kong options and ETFs.	Go to siteView details Compare product selection Compare	loading
9.8 Excellent Webull Finder Award	9.8 Excellent	$0.00	$0	ASX shares, Global shares, Options trading, US shares, ETFs, Cryptocurrencies	$150 Reward Finder Rewards: Join Finder then sign up to Webull as a new customer, deposit at least $2,000 in a single transaction and place at least 1 BUY order for a US-listed stock or ETF to receive a $150 digital Visa gift card. Ends 2 Dec 2026. T&Cs apply. Bonus offer: Get up to 25,000 bonus Qantas Points on eligible Webull deposits and share transfers by 31 Jan 2027. Plus, earn monthly points on your international trades. T&Cs apply.	Invest in over 15,000 shares, options, and $0 Brokerage on all U.S. and Australian Chess-Sponsored ETFs.	Go to siteView details Compare product selection Compare	loading
9.3 Excellent IG Share Trading Finder Award	9.3 Excellent	$0.00	$0	ASX shares, Global shares, US shares, UK shares, ETFs	Go to siteView details Compare product selection Compare	loading

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How we picked these

Finder Score for share trading platforms

We've scored over 30 share trading platforms assessing them for their core features, fees, customer experience and accessibility. Our experts give each platform a score out of 10.

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Important: The standard brokerage fee displayed is the trade cost for new customers to purchase $1,000 of either Australian or US shares. Where a platform charges different fees for both US and Australian shares we show the lower of the two. Where both CHESS sponsored and custodian shares are offered, we display the cheapest option.

Short-term bonds

A bond is essentially a type of loan. When you invest in a bond, you're offering a loan to a company or the government, and in exchange they agree to pay you regular interest (called a coupon) and will repay the loan in full when the bond matures.

The interest return that you receive is called a yield and this varies depending on when the bond reaches maturity and how much risk you're taking on.

While Australian government bonds are very safe, some corporate bonds might be on the riskier side. If for example, you invest in a corporate bond and that company collapses, you risk losing your entire investment.

The best bond for you depends on your investment goals, but in general it has a maturity date that suits your time horizon, a high yield or coupon rate, a high safety rating and a price that is at a discount or close to its face value (typically $100 per bond unit).

At the time of writing, one of the higher-coupon short-dated Treasury Bonds available is GSBG27 (4.75% to April 2027).

• Where to buy: Online brokers (CHESS Sponsored) or financial advisors
• Risk level: Low (Australian government bonds, some corporate bonds) to high (some company bonds)
• Liquidity: High
• Minimum: Exchange-traded government bonds are priced in units with a face value of $100 per unit, while some corporate bonds may require $10,000 or more
• Fees: From 0.5% to 1% – depending whether you buy bonds directly or through a broker

Cryptocurrency staking

Cryptocurrencies are notoriously volatile, but there are some lower risk products that behave in a similar way to bonds or savings accounts — albeit without loss protection and government-backing.

For example, staking allows you to earn a passive income by locking up certain cryptocurrencies, like Ethereum, Solana or Cardano, to help and secure their networks. In return, you receive staking rewards, similar to interest payments.

While some staking options require you to lock up your funds for a set period, many platforms now offer flexible or liquid staking, meaning you can withdraw your funds relatively quickly.

Though these products behave like interest earning savings accounts, they're still riskier because they're not government-backed and your returns depend on the security and stability of the blockchain or platform you're using. If the crypto network fails, the platform gets hacked or the token lose value, you could lose part or all of your investment.

• Where to buy: Crypto exchanges
• Risk level: High (depends on the exchange and coin)
• Liquidity: Low to high
• Minimum: No investment minimums, pending the exchange you use
• Fees: Starting from 0% depending on the broker and the exchange

How do you choose the best short term investment for you?

When it comes to short-term investing, it's not about chasing the highest rate, it's about finding the balance between risk, flexibility and return that works for you.

Start by asking yourself: How soon will you need the money? If you're planning a big purchase in the next 6-12 months, you'll probably want something low-risk and highly liquid (meaning you can easily withdraw your funds), like a high-interest savings account or a short-term government bond.

But if you can lock your money away for a year or 2, you might be able to squeeze out a bit more with options like corporate bonds or fixed income ETFs. Just be aware, the higher the return, the more risk or restrictions you're usually taking on, whether that's credit risk, market risk or simply not being able to touch your cash.

Also, don't forget about taxes. A term deposit or savings account might offer a nice round 5% interest, but if you're paying income tax at 37% or higher, your real return could shrink fast. Some bond structures offer better tax efficiency, especially if you're a savvy investor or using a trust or SMSF.

What's the best way to grow your wealth in under 2 years?

"If you’re risk-averse and happy with returns of circa 5% p.a., I’d suggest a high-yield cash account. If you’re looking for returns of over 10% p.a. I’d suggest an ETF or managed fund which is diversified across geography, sector and asset class. If you’re looking for performance that may shoot the lights out, high-risk investments such as crypto could be for you; you can invest in a single token or buy a basket of digital tokens. Or, consider investing in gold bullion which enjoyed a 25.5% return in 2024 (World Gold Council), and is also the ‘go to’ investment during times of extreme volatility."

Pascale Helyar

Superannuation and wealth expert

Frequently asked questions

• What's the best way to invest 200K for the short term?

  If you're looking for low risk options to invest 200K for a short period, you could consider government bonds, cash and bond ETFs and high-interest savings accounts or term deposits.

• What's the best way to invest 20K to 50k for the short term?

  If you're looking for low risk options to invest up to 50K for a few months or up to a couple of years, you could consider government bonds, cash and bond ETFs and high-interest savings accounts or term deposits..

• What is the best short-term investment right now?

  At the time of writing, high interest savings accounts are offering relatively high interest rates of up to 5.4%. This paired with ultimate flexibility and a government backing (up to $250K), makes them one of the best shot-term investments right now.

• How do I turn 10K to 20K fast?

  A product that can turn your 10K into 20K is one delivering a return of 100%, which is extremely high performing. The only investment products that can offer such a high return quickly are also highly risky. These include penny stocks and cryptocurrencies.

Written by

Kylie Purcell

Investments Analyst

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Kylie Purcell is an experienced investments analyst and finance journalist with over a decade of expertise in a wide range of financial products, including online trading platforms, robo-advisors, stocks, ETFs and cryptocurrencies. She is a sought-after commentator and regularly shares her insights on the AFR, Yahoo Finance, The Motley Fool, SBS and News.com.au. Kylie hosts the Investment Finder video series and actively contributes to the investment community as a judge and panellist. She holds a Master of Arts in International Journalism, a Graduate Diploma in Economics, and ASIC-recognised certifications in securities and managed investments. See full bio

Kylie's expertise

Kylie has written 166 Finder guides across topics including:

• Investment strategies
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• Exchange traded funds (ETFs)
• Ethical investing
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