Short term investments are the most recommended when you have short term goal and not sure of what might happen a few years into the future.
Decisions on short term investments should be based on three factors: the time horizon that you would want to invest, the amount of money you have and to what extend are you willing to risk since all investments involve risk taking.
Some best short term investments that might help you preserve your money while limiting your investment risk include but not limited to:
1.Investing in short term municipal bonds. They work best when added tax benefit gives a better return so it would be wise to asses it first using taxable equivalent yield formula.
3.Investing in online savings account.There are several online banks that offer competitive interest rates.
2.Savings bonds. These are also the best and will offer you inflation protection.
To end with, the best factor to consider before investing is the time horizon at your disposal.