Best short-term investments in France

Living in France and wondering what are the best short-term investments? Find the answers in this article!

A short-term investment is an investment that can be converted quickly into cash. This article details the best short-term investments available today for people living in France. There are two main criteria for making the right investment choice: risk and return.

What is a short-term investment ?

As its name implies, a short-term investment is for a short period of time. Generally, this period varies from a few months to two years maximum. Whether you’re an individual or for a company, the aim of this kind of investment is to secure capital while generating income.

However, short-term investments can also be used to store funds until a better opportunity arises. The ultimate goal in this case would be to invest for the long term in a high-yielding sector.

What short-term investments are available in France in 2021 ?

Savings accounts

Savings accounts or savings books are offered by banks and encouraged by the French state. For individuals, these accounts allow a sum of money to be set aside without risk. For the bank, these accounts are a source of liquidity.

The most popular and most advantageous are the Livret A and the Livret Jeune. However, there are other options, which include:  

  • the Livret de Développement Durable et Solidaire
  • the Livret d’Épargne Populaire
  • the Plan d’Épargne Logement (PEL)
  • the  Livrets d’Épargne Entreprise

Life insurance can also be considered a savings account, even though the way it works is different. 

The benefits of savings accounts

Savings accounts have the reputation of being the safest short-term investment, as they are offered by successful banks and are guaranteed by the State. In addition, you can withdraw your money at any time. Note also that your balances are usually associated with tax benefits.

The disadvantages of savings accounts

Savings accounts are safe investments, but they pay very little. Interest rates rarely exceed 1%. Only the Livret Jeune has a rate above 1%, but it is only available to people under 25. 

Of course you can withdraw your money at any time, but the compounding periods must be respected to earn interest. Generally, there are two compounding periods in a year: from the 1st to the 15th of the month and from the 16th to the last day of the month. Your money must have stayed on your account over one of these periods in order to earn interest.

Term deposit accounts

A term account, or more precisely a term deposit account, is quite similar to a savings account. However, there is one big difference: a term account is locked in. You are therefore not allowed to withdraw your money during the period specified in the contract. Any provisions to the contrary are often accompanied by penalties. The duration of a term account ranges from a few weeks to several years. 

The advantages of term accounts

Like savings accounts, term accounts are also risk-free investments. However, they offer a better rate of return than traditional passbook accounts.

The disadvantages of term accounts

While rates are better, they are still in the 1-2% range. Rates approaching 2% are for medium/long-term deposits. 


SCPIs, or Sociétés civiles de placement immobilier, are quite interesting investments. These companies collect money from savers and invest them in real estate. Investors can therefore grow their capital through periodic incomes and withdraw it at any time. 

Beware, for short-term investments, you should avoid SCPI Pinel despite the tax benefits. Indeed, the benefits of SCPI Pinel are only effective for long-term investments.

The advantages of SCPIs

SCPIs have an average profitability of 4 to 5%. This percentage has been in effect in France for the past few years. This confirms that real estate remains one of the most profitable sectors. 

Beware, there are also risks. However, according to the statistics, these risks are smaller, especially if you invest your money in well-located buildings.

The disadvantages of the SCPIs

Investing in SCPIs comes with a fixed subscription fee of up to 10%. This must be taken into account in your calculations. SCPIs are therefore not profitable until a certain period has elapsed. That is, once the rental income has covered these various costs. 


There are two attractive short-term investments types when it comes to crowdfunding:

  • Crowdlending, which allows you to lend money to companies with an obligation to return it at a certain time with a fixed interest;
  • Crowdequity, which allows you to invest in a company with high potential as a shareholder and quickly make a profit.

The advantages and disadvantages of crowdlending

Crowdfunding is quite safe as long as you choose the right platform. Be sure to opt for sites that ensure maximum security. 

Note that the rate of return in crowdlending is still quite low, especially for short-term investments. It is around 3% for a short term loan against 10 or even 12% for long term real estate crowdlending.

The advantages and disadvantages of crowdfunding

Crowdfunding is the equivalent of an equity investment in a start-up company. As such, this form of investment carries a certain amount of risk. Even if you are allowed to analyze the business plan of the company concerned, you cannot be sure of its success. However, if the company takes off, you will be in the front row to reap the benefits.

Stock market investments

Investing in the stock market is another way to invest your money in the short term. It is both the most profitable and risky way to invest, and requires know-how and a lot more work than other options. Investors have the possibility to trade their money in different assets, such as stocks, currencies and bonds among others.

The benefits of investing in the stock market

It would be too easy to say that investing in the stock market is profitable. Many people have become millionaires through this type of investment, but there are just as many investors who have lost everything. However, certain stock exchange investments offer some guarantees, even if the returns are lower. For example, the risks are minimal when it comes to bonds.

The disadvantages of investing in the stock market

There is one major drawback: if you do it wrong, you risk losing all your money. This type of investment is not recommended for people with other activities. In the stock market, the following adage takes on its full meaning: “For where your treasure is, there also will your heart be”.

How to choose a short-term investment

Choose according to your objectives

Have a goal in mind before deciding on a short-term investment. Either you want to keep your money safe and secure until you can use it for something specific, or you want to reap quick profits. So you're necessarily thinking about two factors: risk and return.

If you want a risk-free investment, opt for savings books or term accounts. Just make sure that the maturities are right for you. This way, your money will not stay in your current account and you will not be tempted to spend itf. At the same time, it won't lose value because the interest rate is in line with the inflation rate.

If you want to maximize returns, you're going to have to take some risks. Becoming an investor on a crowdfunding platform is a way to increase your capital fairly quickly. So is investing in the stock market, but will real risks

Diversify your investments

Combining several investments is also another way to grow your capital, but don't put all your eggs in one basket. For example, you can combine risky but profitable investments with zero risk investments to avoid running out of money. Depending on your money and your personal requirements, find the right balance and go for it.

A final word on investing in the stock market

When faced with the risks of investing in the stock market, some experts suggest the 10% rule. While encouraging you to diversify your investments, this rule says that you should only invest 10% of your savings in the stock market. This rule is mostly for novices, but experts can use it as a guide and just set the bar a little higher.