If you have a near-term goal you want to save for, you’ll want to earn the best possible return while taking the lowest amount of risk. A short-term investment can help you achieve this. Ideally, the best short-term investments should provide a safe and easily accessible place to park your money for your goals, while also earning some interest.

If you’re investing in the stock market, it’s generally considered a good idea to plan to keep your money invested for at least five years — that allows you time to ride out market volatility. But a savings goal of five years or less doesn’t mean you need to let your cash sit idle. While short-term investment returns differ from those of long-term…