Best Online Investment Plans for 1 Year in India

Best Online Investment Plans for 1 Year in India

Looking to invest for a short period without risking your hard-earned money? One-year investment plans are ideal for individuals seeking quick, stable returns and easy liquidity. These short-term options offer flexibility, low risk, and better returns than keeping funds idle in a savings account.

From traditional bank deposits to online mutual funds and government-backed securities, there are several ways to grow your money safely within a year. The key lies in balancing safety with returns. Let’s explore the best short-term investment plans in India that you can invest in online to make your money work smarter, even in just 12 months.

Top Short-Term Investment Options in India

Short-term investments are ideal for individuals looking to hold their funds for under a year while generating consistent returns. They’re handy for achieving near-term goals such as travel, tuition fees, or emergency funds. Options like fixed deposits, liquid funds, and T-bills provide both security and quick liquidity.

When choosing a short-term plan, consider your risk appetite, liquidity needs, and return expectations. Conservative investors may prefer bank FDs or post office deposits. At the same time, those open to minimal risk can explore debt or arbitrage funds for slightly better yields—the goal: short tenure, steady growth, and easy exit.

Fixed Deposits (FDs)

Bank FDs remain one of the safest one-year investment options. They offer fixed returns ranging from 6% to 8% depending on the bank, tenure, and depositor type. The interest is predetermined, ensuring guaranteed income at maturity. Many banks now let you open and manage FDs completely online with auto-renewal and premature withdrawal features.

Recurring Deposits (RDs)

Recurring deposits are ideal for those who want to save small amounts regularly while earning steady interest. With flexible monthly instalments and tenures starting from 6 months, RDs offer guaranteed returns similar to FDs. The interest rate typically ranges between 6% and 7.5%, making it a disciplined, low-risk savings choice.

Post Office Term Deposits

Post Office Term Deposits are government-backed and highly secure, making them perfect for conservative investors. Tenures range from 1 to 5 years, with the 1-year deposit currently offering around 6.9% annual interest. They can be opened online via India Post Payments Bank (IPPB) and are ideal for small, risk-free investments.

Fixed Maturity Plans (FMPs)

FMPs are closed-ended mutual funds that invest primarily in debt instruments with a fixed maturity. They offer stable returns over a set period, typically matching your 1-year horizon. FMPs carry slightly higher returns than FDs, though they are subject to market and credit risks, and premature withdrawal isn’t allowed.

Debt Mutual Funds

Debt mutual funds invest in government and corporate bonds, offering moderate returns (6–8%) with relatively low risk. They’re ideal for short-term investors who want liquidity and better tax efficiency than FDs. Online platforms make it easy to start investing with minimal documentation and flexible redemption options.

Arbitrage Mutual Funds

Arbitrage funds take advantage of price differences in cash and futures markets to deliver stable returns with very low risk. They usually outperform liquid funds slightly and are taxed like equity funds, making them more tax-efficient for short-term investors. Ideal for parking surplus funds for 6–12 months.

Liquid Funds

Liquid funds invest in short-term money market instruments and are known for instant liquidity and low volatility. They offer returns between 5% and 7%, and you can redeem your investment within one business day. Ideal for emergency funds or temporarily storing idle cash without locking it away.

Treasury Bills (T-Bills)

Issued by the Government of India, Treasury Bills are among the safest short-term investment avenues. With tenures of 91, 182, and 364 days, they’re risk-free and fully backed by the government. Returns range from 6–7%, and they can be easily bought or sold online through the RBI’s Retail Direct platform.

How to Choose the Right 1-Year Investment Plan

Choosing the best one-year investment plan depends on your financial goals, income stability, and risk tolerance. Not all instruments offer the same balance of safety, liquidity, and returns. Here’s how to narrow down your choices before you invest:

• Identify your short-term goals (travel fund, emergency buffer, EMI payment, etc.)
• Check if you’ll need instant liquidity or can stay invested for the full year
• Compare post-tax returns across instruments
• Opt for regulated, transparent online platforms
• Balance low risk (FDs, T-Bills) with moderate-return options (debt funds)

A well-chosen mix ensures your money remains safe, flexible, and profitable, even in the short run.

Understanding Tax Implications

Taxation plays a major role in short-term investing. Even slight differences in post-tax returns can affect overall gains. Keep these points in mind before choosing where to invest:

• Interest from bank FDs and RDs is fully taxable as per your income slab
• Gains from debt mutual funds are taxed as short-term capital gains if held under 3 years
• Arbitrage funds are treated as equity investments and are more tax-efficient for one-year tenures
• T-Bills are government-backed but taxable as income from other sources

Knowing how each product is taxed helps you make smarter, net-return-focused decisions.

Evaluating Liquidity Needs

Liquidity determines how easily you can access your money without penalties. While all short-term plans are relatively flexible, their liquidity varies. Consider:

• FDs and RDs may charge a penalty for premature withdrawal
• Liquid and arbitrage funds allow redemptions within a day
• T-Bills and FMPs are less liquid but very stable
• Post office schemes require a fixed tenure commitment

Choose products that match your financial timeline, so your investments work for you, not the other way around.

Aviva’s Short-Term Investment Solutions

While most one-year investment plans focus on quick returns, Aviva offers a range of digital investment-cum-insurance options designed for medium-term wealth creation and guaranteed savings. These plans combine protection, flexibility, and tax efficiency, making them ideal for individuals seeking financial security with structured growth over time.

Aviva Signature Investment Plan

The Aviva Signature Investment Plan is a unit-linked, non-participating life insurance plan that lets you grow your wealth through market-linked funds while enjoying life cover. It offers eight fund options, allowing you to switch or redirect your investments based on your changing financial goals.

You can start with flexible premium payment terms, and after the initial five years, make partial withdrawals as per your needs. The plan also provides tax benefits under Section 80C, while maturity benefits are tax-exempt under Section 10(10D) ** (subject to premium limits). Designed for long-term financial goals, this plan offers both growth and protection in one comprehensive solution.

Aviva Fortune Plus Plan

Aviva Fortune Plus is a unit-linked life insurance plan that helps you build wealth over the medium to long term while offering life cover throughout the policy period. It allows investors to choose between single, limited, or regular premium payment options, with policy terms ranging from 10 to 20 years.

One of its standout features is the return of 100% of policy charges at maturity (excluding fund management and mortality charges), provided all due premiums are paid. The plan offers multiple fund choices, loyalty additions, and flexible premium payments, making it a balanced option for those looking to invest digitally for consistent growth and protection.

Aviva Guaranteed Savings Plan

The Aviva Guaranteed Savings Plan is a non-linked, non-participating endowment insurance plan that ensures guaranteed maturity benefits along with life cover. It’s designed for individuals who prefer stable, assured returns over market-linked volatility. The plan offers flexibility in premium payment and payout options, helping investors plan for key milestones like education, marriage, or retirement.

It also provides tax benefits under Sections 80C and 10(10D) of the Income Tax Act. With its focus on guaranteed outcomes and low risk, this plan is best suited for those looking to secure long-term financial goals with complete peace of mind.

AN Dec 43/25