Ask a planner answers: investing £100k

Tuesday, June 7, 2016

The Question, from Ann, aged 58

What and where could I invest £100,000? I would like to know what return per month I could get with no risks. 

The answer, from Robin Melley CFPTM, Matrix Capital Limited

If you "no risk" your capital needs to be placed in an account where your capital is guaranteed.

That could be achieved by spreading your investment between at least two deposit accounts each with different banking institutions; and choose an account that pays monthly interest if you require a monthly income.

By spreading your funds across two accounts with separate banking institutions, you will remain within the FSCS compensation limit of £85,000 - just in case the bank fails.

Alternatively, if you want to keep it simple, you could place your £100,000 in a National Savings & Investment Direct Saver account, which pays 1.1% gross. Because this account is with NS&I, it benefits from a Government backed guarantee on the whole amount saved, not just the first £85,000.

If you're a non-taxpayer, you benefit from the interest being paid gross also.

If you're a tax payer, make sure you invest £15,000 in a cash ISA, the the remaining £85,000 invested as suggested above.

Robin Melley CFPTM
Matrix Capital Limited