Research Outline

Short-term Investment for Business


Find short-term institution-based investments for overseas cash reserves in the UK for a business decision. Short-term will be defined as less than 12 months.

Early Findings

  • Short-term investments are defined as those that span less than 3 years.
  • Safety of investment/asset is one of the most important factors when it comes to short-term investments.
The best short-term investments are those that offer maximum safety in terms of returning the investment whenever needed. Following are the best short-term investments:
  • Savings accounts
  • Short-term corporate bond funds
  • Short-term government bond funds
  • Money market accounts
  • Certificates of deposit
  • Cash management accounts
  • Treasuries

Savings Accounts

Some of the best savings accounts in the UK are offered by Bank of London and Middle East and Al Rayan Bank offering 2.1% and 2.07% interest rates respectively. Other notable savings accounts are:
  • Marcus Online Savings Account (Interest rate: 1.5%)
  • Chelsea Building Society (Interest rate: 1.4%)
  • Yorkshire Building Society (Interest rate: 1.4%)
  • Sainsbury's Bank (Interest rate: 1.39%)
  • AA Easy Saver (Interest rate: 1.36%)
Other types of investments are offered by different institutions, e.g. Corporate bond funds are offered by PIMCO, government bond funds are offered by Vanguard, HSBC offers money market accounts, Santander Bank offers certificates of deposit, cash management accounts are offered by MPL Wealth Management, etc.