The Rise of Short-Term Investments: Why More Europeans Are Choosing 3–12 Month Returns

 

 

In 2025, European investors are rethinking the long game. With ECB interest rates holding above 4%, inflation still haunting consumer prices, and market uncertainty showing no signs of slowing, the appetite for long-term commitments is wearing thin.

Instead, there’s a clear shift: more Europeans are opting for short-term investments – strategies with 3–12 month returns that offer flexibility, liquidity, and faster feedback. Whether it's a high-yield savings account, short-duration P2P lending, or real estate-backed loans, the demand for fast capital rotation is surging across the continent.

Let’s break down why short-term investments in Europe are booming, who’s driving the trend, and how you can take advantage of the best short-term returns. 

 

Why short-term investments in Europe are booming?

Europe’s investment mindset is shifting fast. With the ECB maintaining key interest rates around 2% despite recent cuts, and inflation lingering near the 2% target in 2025, investors are increasingly wary of locking cash away for years. Economic forecasts also remain subdued – with projected EU GDP growth at just 1.1% in 2025 . That’s a world where long-term commitments can end up costing more in opportunity than they return.

Trust in long-term pension systems is also shaken. Volatile equity markets – compounded by global uncertainties like trade tensions and geopolitical risk – are eroding confidence in retirement safety nets.

The result? Investors across generations are shifting to fast investment options that pay off in 3–12 months. Millennials and Gen Z, in particular, value flexibility and liquidity, prioritizing short-term gains over long-term exposure.

This trend is visible in the rising number of savings accounts and term deposits with shorter durations – platforms like Raisin, Trade Republic, and Loanch are reporting double-digit growth in 3–12 month term products over the past two years. While exact figures vary, some platforms have seen increases upwards of 40–50% in short-term account openings. (Footnote: include platform-specific data when available.)

In short, Europe is rewiring its investment DNA. Investors buy time and growth in bite-sized chunks. Next, we’ll walk through what this trend really means – who’s driving it, what’s working, and how to build a smart, recession-proof short-term portfolio.

 

Fast investment options – what you gain and what you risk

​​Short-term investments are designed for speed, not speculation. They're built for investors who want access, flexibility, and control – especially when the economic forecast is cloudy.

Here’s a breakdown of what short-term investing delivers – and where it can trip you up:

Short-term investments shine when:

• You’re building or growing emergency savings
• You’re parking cash for a future large purchase (car, home deposit, tuition)
• You want to test new markets or platforms with low risk before committing long term

In uncertain economies, fast doesn’t mean reckless – it means agile, intentional, and adaptive. Use short-term tools wisely, and they become a flexible foundation for your broader financial strategy.

 

Best short-term returns – where smart money is going

If you’re looking for short term investments in Europe with solid returns and manageable risk, 2025 is offering more choice than ever. But the key isn’t just chasing yield – it’s balancing return with liquidity and protection. Here’s where savvy investors are putting their money:

1. High-yield savings and term deposits

Platforms – Raisin, Bunq, N26
Returns – 3.5% to 4.5% for 3–12 month terms

Forget old-school bank accounts paying peanuts. EU fintech platforms like Raisin now offer access to partner banks across Europe with some of the best insured rates available. Your capital is protected by the EU Deposit Guarantee Scheme (up to €100,000) per bank.

Good for: Risk-averse savers, cash-parking before major life purchases
Caveat: No compounding unless manually reinvested. Inflation can still bite.

2. Short-term P2P lending

Platforms – Loanch, Mintos, PeerBerry
Returns – 10% to 16% on 30–180 day consumer loans

This is where the returns jump – if you know how to play it. Short-term loan investing lets you earn fast, reinvest fast, and build compound returns. Platforms like Loanch offer buyback guarantees and auto-invest tools, which make it possible to set a clear risk filter and let it run.

Good for: Investors comfortable with platform due diligence and diversified lending
Caveat: Not insured – you need to trust the loan originators and platform’s financial health.

3. Treasury bills and short-term government bonds

​​Access via – DEGIRO, European banks
Returns – ~2.5% to 3.5% on 3–6 month T-bills

Several EU and Nordic governments are issuing short-duration debt at increasingly attractive rates as they manage inflation and borrowing needs. These are backed by national governments, so they offer one of the safest short-term returns.

Good for: Conservative investors, those parking cash safely
Caveat: Modest yield – won’t beat inflation but won’t tank either.

4. Short-duration bond ETFs

​​Examples – iShares Euro Government Bond 1–3yr
Returns – ~3% to 4%, with relatively low volatility

These ETFs track short-term government bonds, offering better liquidity than direct bonds and diversification across multiple countries. They’re ideal for hands-off investors looking for something safer than stocks, but more dynamic than deposits.

Good for: Passive portfolios, income-focused investing
Caveat: Still exposed to rate changes and some bond market volatility.

5. Short-term real estate crowdfunding

Platforms – EstateGuru, Reinvest24
Returns – 8% to 12%, repaid in under 12 months

You lend to vetted real estate projects – developers pay back with interest. The better platforms offer property-backed loans and strict vetting, but risk is higher than most other options here.

Good for: Yield hunters willing to research each deal
Caveat: Platform failure, project default, and market slumps are real risks. Stick to diversified and platforms with skin in the game.

 

Short-term investments – Europe and beyond: Who’s choosing speed over size?

It’s not just young investors chasing crypto anymore. Across Europe, a wave of retail and small business investors is shifting to short-term investments – and it’s not just about returns. It’s about control, clarity, and quick access to cash.

Millennials and Gen Z have grown up watching economic systems falter – from pension instability to housing crises. They’re skeptical of “wait 30 years and hope” wealth plans. For them, 3–12 month returns feel real, tangible, and responsive. 

According to J.P. Morgan, over 62% of investors under 35 now prioritize liquidity over long-term yield.

Older investors, especially in their 50s and 60s, are pivoting too. Many are parking capital in short-term vehicles like Treasury bills, P2P platforms, or term deposits to hedge against stock market whiplash. Their goal? Cashflow, not just growth.

Small business owners and freelancers are also turning to short-term investments as a parking lot for surplus funds. Why leave money idle in a checking account when you can get 4–5% on a 90-day term deposit or 10% from P2P platforms?

On platforms like Loanch, the average user portfolio is shifting smaller and shorter. Internal 2025 data shows that over 70% of new investors opt for loan durations under 6 months – a clear sign of rising demand for fast, flexible investment cycles.

 

Long-term vs short-term – which strategy wins in 2025?

​​Let’s cut the noise – this isn’t a battle between long-term vs short-term investing. It’s about knowing when to use each.

• Short-term investments give you agility. You can adapt to inflation, reallocate capital fast, or take advantage of interest rate shifts. In uncertain times (like now), they’re powerful tactical tools.
• Long-term investing, on the other hand, builds serious wealth. It absorbs market shocks, compounds over time, and suits goals like retirement or generational transfers.

In 2025, smart investors are combining both. They keep a portion of assets in high-liquidity short-term options (like P2P loans, term deposits, or real estate flips) and the rest in long-term plays (like dividend stocks or ETFs) that ride economic cycles.

Use short-term tools to manage risk and meet near-term cash needs. Use long-term assets to grow wealth beyond today’s volatility.

 

How to combine fast investment options for smart gains

Short-term investing doesn’t mean throwing cash at whatever looks shiny. A smart portfolio balances liquidity, safety, and yield – even over just 3–12 months.

Here’s a model short-term portfolio built for flexibility and resilience:

• 40% insured savings – Use platforms like Raisin or Bunq to park capital in EU‑protected deposits with 3.5–4.5% yields.
• 30% P2P lending with buyback guarantees – Platforms like Loanch or PeerBerry offer strong short-term yields (10–16%) while minimizing risk via guaranteed repurchase on default
• 20% short-term bond ETFs – Add stability with low-volatility options like iShares 1–3yr Euro Government Bond ETF, returning ~3–4%.
• 10% speculative real estate crowdfunding – Target short-duration, vetted property loans with 8–12% returns. Use only if you’ve researched the platform and project risks.

Tactical tips to sharpen performance

• Use auto-invest tools to maximize reinvestment speed, especially for P2P loans
• Ladder term deposits so that some capital matures monthly – unlocking liquidity without penalty
• Actively monitor platform health – look at default rates, interest payouts, and loan pipeline. If a platform dries up or quality drops, move your cash.

The key to short-term investing in 2025? Stay liquid, stay diversified, and stay alert.

 

Conclusion

Short-term investing is no longer just a defensive play – it’s a smart strategy for control, liquidity, and agility. The rise of platforms offering fast investment options with solid returns reflects a real shift in how Europeans think about money.

This isn’t a trend – it’s a new baseline. Whether you’re hedging against inflation, testing the waters before bigger plays, or simply keeping cash moving, short-term investments in Europe give you the tools to respond in real time.

The next step? Look at your timeline, cash needs, and risk appetite – then build a short-term allocation that works for you in 2025 and beyond.