What to do with £400,000
Discussion
I guess it depends on your definition of risky and whether you need access to the funds at any stage in the future.
I am fairly risk adverse so would be looking at spreading the funds into a mixture of the best interest rate accounts I can get, up to the maximum allowed under the guarantee scheme, which I think has increased now above the £85,000.
Also consider an income bond for an element of the monies that you do not require access to allow for diversification.
I am fairly risk adverse so would be looking at spreading the funds into a mixture of the best interest rate accounts I can get, up to the maximum allowed under the guarantee scheme, which I think has increased now above the £85,000.
Also consider an income bond for an element of the monies that you do not require access to allow for diversification.
Spotted this over the weekend.
https://www.ii.co.uk/analysis-commentary/10-shares...
You could double it up with your £400k and have a bit left over for a new toy or two, and an income off £20k+?
https://www.ii.co.uk/analysis-commentary/10-shares...
You could double it up with your £400k and have a bit left over for a new toy or two, and an income off £20k+?
nickfrog said:
"risky" is relative. Are we talking zero risk or simply not casino type risk?
The risk can also be that the capital just erodes compared to the returns of a moderate risk solution.
I would personally grab the tax relief where possible for starters.
just like a couple of ISA,s, the rest in a decent interest accounted giving me a good sum every month to live on(seen one at 7%), a few basic things really.The risk can also be that the capital just erodes compared to the returns of a moderate risk solution.
I would personally grab the tax relief where possible for starters.
jezhumphrey75 said:
ust like a couple of ISA,s, the rest in a decent interest accounted giving me a good sum every month to live on(seen one at 7%), a few basic things really.
Usually any cash based accounts offering those sort of rates are pretty limited in what you can pay in ie maybe a max of £ 5k or so per annum ?jezhumphrey75 said:
Hiya all, what would recommend to do with 400,000 and getting monthly returns from it? A few ISA,s and higher interest bank accounts?
Nothing risky.
Regards.
One of the downsides of this approach is that over time the value of your investment decreases with inflation.Nothing risky.
Regards.
I was in a similar position recently - investing a lump sum for a relative, primarily for income over the long term. In the end it's in a mix of bonds and shares.
20000 in global tracker in ISA now (presuming you're 50ish) - choose one that pays out divis rather than reinvest
20000 in next tax years ISA on April 6th, add to global tracker
Check for last 3 years pension allowance maximum, invest into a SIPP, then drip into global tracker over 1 year period
(personally I woudl go for a mix of trackers, so if say USA absolutely crashes, then other trackers say European, won't fall quite as much, in effect creating your own global from some regional or sector trackers)
Top up again 6th April for next years expected pension allowance
Max premium bonds
Ferrari 355 - only going upwards in value (or any other rising price car you can use not just hold for value, many Porsche 911 GT or GTS variants will qualify)
Whatever's left - cash high interest account and a mix of 1, 2, 3year, 5year, 10 year etc bonds paying above inflation rate only.
20000 in next tax years ISA on April 6th, add to global tracker
Check for last 3 years pension allowance maximum, invest into a SIPP, then drip into global tracker over 1 year period
(personally I woudl go for a mix of trackers, so if say USA absolutely crashes, then other trackers say European, won't fall quite as much, in effect creating your own global from some regional or sector trackers)
Top up again 6th April for next years expected pension allowance
Max premium bonds
Ferrari 355 - only going upwards in value (or any other rising price car you can use not just hold for value, many Porsche 911 GT or GTS variants will qualify)
Whatever's left - cash high interest account and a mix of 1, 2, 3year, 5year, 10 year etc bonds paying above inflation rate only.
There are limits on what you can pay in with those sort of accounts and it won't even touch the sides with £400K.
I think I'd try and be very clear if you want to save the money or invest the money.
There's a range of factors like where that £400K sits with all your other assets and your timeline for needing to access it right down to what level of risk lets you sleep at night.
Investing generally comes with a level risk in the hope of a level of reward that is greater than savings.
With savings if you put in £400K you'll always see at least £400K in the account(s) but as pointed out you're silently losing out to inflation as your £400K has less purchasing power over time.
I think I'd try and be very clear if you want to save the money or invest the money.
There's a range of factors like where that £400K sits with all your other assets and your timeline for needing to access it right down to what level of risk lets you sleep at night.
Investing generally comes with a level risk in the hope of a level of reward that is greater than savings.
With savings if you put in £400K you'll always see at least £400K in the account(s) but as pointed out you're silently losing out to inflation as your £400K has less purchasing power over time.
Key First Direct Interest Rates (As of February 2026):
Regular Saver: 7.00% AER/gross fixed for 12 months (max £300/month).
Co-op Earn 7.00% interest, calculated daily (gross / AER variable)
Have the account for a 12 month term
Open with as little as £1, and save up to a maximum of £250 per calendar month
Open it as a sole or joint account
Zopa Earn 7.00% interest, calculated daily (gross / AER variable)
Have the account for a 12 month term
Open with as little as £1, and save up to a maximum of £250 per calendar month
Open it as a sole or joint account
That accounts for 9600
Where do you want to put the other 390400?
Regular Saver: 7.00% AER/gross fixed for 12 months (max £300/month).
Co-op Earn 7.00% interest, calculated daily (gross / AER variable)
Have the account for a 12 month term
Open with as little as £1, and save up to a maximum of £250 per calendar month
Open it as a sole or joint account
Zopa Earn 7.00% interest, calculated daily (gross / AER variable)
Have the account for a 12 month term
Open with as little as £1, and save up to a maximum of £250 per calendar month
Open it as a sole or joint account
That accounts for 9600
Where do you want to put the other 390400?
You could use some of on a buy to let. Bricks and mortar are pretty safe, especially longer term.
Where I live you can buy a 2 bed house for around 180k and it'll rent for 1k a month.
Obviously a bit of work involved and the income is taxable but it's a good way to protect your money from being eroded by inflation.
Where I live you can buy a 2 bed house for around 180k and it'll rent for 1k a month.
Obviously a bit of work involved and the income is taxable but it's a good way to protect your money from being eroded by inflation.
ChrisH72 said:
You could use some of on a buy to let. Bricks and mortar are pretty safe, especially longer term.
Where I live you can buy a 2 bed house for around 180k and it'll rent for 1k a month.
Obviously a bit of work involved and the income is taxable but it's a good way to protect your money from being eroded by inflation.
Most pro landlords are not happy with things currently and looking to move from property.Where I live you can buy a 2 bed house for around 180k and it'll rent for 1k a month.
Obviously a bit of work involved and the income is taxable but it's a good way to protect your money from being eroded by inflation.
Btl would be ill advised considering he wants risk free
dingg said:
ChrisH72 said:
You could use some of on a buy to let. Bricks and mortar are pretty safe, especially longer term.
Where I live you can buy a 2 bed house for around 180k and it'll rent for 1k a month.
Obviously a bit of work involved and the income is taxable but it's a good way to protect your money from being eroded by inflation.
Most pro landlords are not happy with things currently and looking to move from property.Where I live you can buy a 2 bed house for around 180k and it'll rent for 1k a month.
Obviously a bit of work involved and the income is taxable but it's a good way to protect your money from being eroded by inflation.
Btl would be ill advised considering he wants risk free
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