5 Ways To Invest Money Lying Idle In Your Savings Account

Haven’t we all been through situations when you don’t have a single penny in hand and all of a sudden your bank balance is not in single digits anymore? Be it a hike, a good business deal or a kind relative who is the reason behind this sudden influx of money, those moments certainly do make us feel good, don’t they? Being the responsible mature adult that you are (or try to be), you curb your impulses to splurge all that money and instead set it aside, untouched. But of what use is it if it just sits in your savings account earning a paltry interest that is akin to your month-end bank balance? Let us introduce you to some options to invest that money and earn great returns!

How To Invest Money Lying Idle In Your Savings Account


The oldest form of investment, gold, is a viable option to invest and grow money in a short time frame. It’s especially helpful during periods of economic crisis or inflation as its demand is always on the rise. The yellow metal offers protection and stability of your capital, which in this case is gold. It can even be considered as more of an investment against economic shocks. As a short-term investment, you can earn anywhere from 7 to 8% in returns or even as much 20% if you decide to hold on to it for longer. Ideally, investing around 5% of your money in gold is a good option.


A bond is an agreement when an investor offers money as a loan to an entity. These are generally risk-free and have high liquidity. At maturity, you receive the principal amount with a fixed rate of interest per annum. This is a great option for anyone looking to diversify their investment profiles.

Certificate of Deposit

As the name indicates, a Certificate of Deposit or CD is a certificate issued by a bank to a person depositing money at a pre-decided rate of interest for a fixed tenure. A CD is a form of an ultra short term fund, which is a debt instrument. The average returns for a one year period are around 8%. The funds can only be withdrawn at maturity, along with the interest earned on the fund. The minimum tenure a bank can usually issue a CD is for 7 days and a maximum of 1 year.

Short Term Floating Rate Fund

This is a form of short term investment with a floating interest rate where the principal amount you invest is divided between floating securities and fixed-rate securities. This is a great short term investment option for the risk-averse as it gives you a source of stable income for the specified period.  

Invoice Discounting

Invoice Discounting is an alternative investment instrument that is still in its nascent stages and has been gaining popularity of late. Investors generally get attractive returns on their investments in 30-90 days. It usually takes place on an online platform or marketplace like KredX, India’s first invoice discounting marketplace.

Here’s how it works:

Businesses receive an invoice for delivered goods or services from a bluechip company. The business then uploads the invoice on the KredX platform after a discount on the total amount. Investors check to see the available invoices on the platform and select the ones they wish to purchase. The funds are then transferred to the business in 24-72 hours which ensures that the cash flow isn’t affected. In turn, the investors get lucrative returns on funds that were sitting idle in a short timeframe of 30-90 days at a higher rate than traditional investments.

Also read: How To Manage Shortfalls In Your Investment Corpus?

It’s always wise to save for a rainy day because you never know what the future holds in store. And what better way to save than investing your hard-earned money that is lying around idle. Start investing today to ensure a worry-free tomorrow!