Say I have a small sum of money, which I have no use for for the following 6-12 months. I don't want to invest it in index funds, because these have a non-negligible risk of decreasing in this time period, and I need the money available.

What investment plan is better suited for this purpose?

If it matters, I live in Israel.

  • Is it really an investment if it's shorter than a year? Commented Sep 3, 2010 at 20:44
  • @Scott - it's someplace to put the money other than cash.
    – ripper234
    Commented Sep 9, 2010 at 13:08

3 Answers 3


Unfortunately the answer is, almost none.

Almost everything has a risk of decreasing; but given your short time horizon and presumably given that you want back your principal in full, plus a little bit, you have few choices.

(Some of the following may be Canadian specific terms, but hopefully they are generic enough to apply)

Savings accounts, money-market funds and the like should be available at any bank. Interest won't pay you much right now, but the money should be safe (I presume Israel has some kind of deposit insurance for normal bank accounts?)

Slightly more risky would be a short-to-maturity bond or stripped bond coupon. The entry amount of money for one of these may be more than you have on hand, or the setup fee for an investment account might be more than you want to bother with for a one-off investment.

Given that you seem to indicate that you might need access to the money during the time-frame in question, the bank-account option seems to be the only one really available.

  • 2
    Minor nitpick: Money market funds are not typically insured deposits. Commented Mar 31, 2010 at 20:20
  • 1
    Money Market FUNDS and Money Market ACCOUNTS are two different things. Commented Oct 14, 2010 at 14:42

I would put this money to a high-interest savings account. It will not earn you too much, but it will save it from inflation.

  • 1
    currently, all high-interest online savings account are at 1%. Does that still protect against inflation?
    – user9671
    Commented Apr 5, 2013 at 13:49
  • @Ramin the 1% will not save you from anything, but check the date when this comment was made. it was 3 years ago :)
    – gyurisc
    Commented Apr 6, 2013 at 14:32

CDs or money market funds. Zero-risk for the CD and ultra-low risk for the money market account; better return than most savings accounts.


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