I’m in the money!

No-one has suggested peer to peer lending. From what I've heard it's pretty reliable and a good return. Do any grans have experience of this?

DH and I have money to invest following an inheritance and we haven't done anything with it yet although some of it is ear-marked for essential home repairs.

If you don't need the money at the moment talk to a financial advisor as they will have some ideas. We have used one for quite a few years and they have made our money work hard- more successfully than banks or building societies! Ask friends or family if they can recommend someone. It'll be worth it.

Oops!! Should read in Australian $. ?

There are no decent rates offered by building societies...none whatsoever.
They limit the amount you can save each month so that you're only getting 5% on that amount compounded over the 12 months. Tbe maximum I've found that you can save in any one month, is £250. Work out cumulative interest on that for 12 months and you'd be better off putting a decent amount on a trifecta.
I laughed when my bank told me the compound interest I'd get for saving £10k pa.
As I mentioned earlier, peer to peer (private loans) are more lucrative.

When I retire I intend to downsize which will release significant capital. I plan to invest in a Christian charity which uses the money to buy properties to support homeless people in partnership with churches working with the homeless. I'd love to invest now but only have a small amount which needs to be accessible. You can choose how long to invest for and choose your interest rate - up to a maximum of 5% I think. Obviously if you choose to accept a lower rate the charity can do more good. It's called Green Pastures. www.greenpastures.net
I'll need to keep some funds accessible but love the idea of helping others while getting a better return on my savings than the banks and building societies can offer.

You could put some in premium bonds and if your feeling risky £500 or so in crypto currency. All the experts say it will boom in winter. I have followed the market for a while and its low at the moment and it is likely to double or more by winter.

You would have to do some research, dont just go off my work. Coinbase is a good place to buy the stock.

Poppyred I would be more than happy to give your money lots of interest ??? I cant guarantee a good return for you, but I could take pics and send them to you xx

jocork - I tried opening www.greenpatures.net and got this message on my computer.

Your connection is not private
Attackers might be trying to steal your information from www.greenpastures.net (for example, passwords, messages or credit cards).

I wonder how wise it is to invest money that’s not guaranteed by the government? Bit risky if you ask me? Anyone been bitten by this?

I’ve been given advice by a financial adviser, but still a bit dubious. ??

Tuck it away in PSBs as suggested above. It is easy to get the money ( or a part of it) out when you need to and the possibilty of wins is quite good for large sums invested. Wait for real interest rates to improve.

I know this forum isn't the best place to get specialist financial advice, but here are my thoughts, for what it's worth.

A lump sum pension payment isn't just a lucky windfall, it's supposed to give you security in your old age. Assuming it's a substantial amount, I think you should take proper financial advice.

Premium Bonds are getting a lot of mentions here, but it's not a sensible way to invest large sums. What you're doing is keeping your capital safe and gambling with the interest, and without a big win, the actual value of your capital will dwindle. That's fine for a bit of a flutter, but it's not a wise way to invest all your savings to provide for your future. The overall rate paid out is now about 1.4%, and because a few people get big prizes and this is just an average, most people won't get as much as this.

By tying up some of your capital for longer, you can get a better interest rate than this, and one you can rely on, so your savings don't lose so much in value. Do take some advice on this.

I think investing for the long term is very sensible advice and it was our policy when younger.
However now at over 80, what is the point, only our family will benefit.
Premium bonds are ideal for us and a bit of fun.
If we need money for emergencies, we can get it out, we do have immediate access money, but all we anticipate is needing money for care.

I get a return of 1.5% on my premium bonds with always that chance that ......!

When I looked into the Santander 123 account, you had to have over £20,000 in the account, put in £500 each month, and have at least two Direct Debits from the account. There was a bit of cash back from the Direct Debits but most seem to come from shopping in Tescos and big stores - and we don’t.

My pension lump sum was derisory and not worth investing seriously, but Grannyticktock is right. If this lump sum is substantial you really should seek help from a proper pensions advisor. It needs to be securely invested where it can give a good return and a reliable income for you.

Oh, I didn’t say - Santander 123 now advertises the basic rate as 1.49 to 1.5%. And it’s supposed to be the market leader!

nfk
You don’t have to have £20K in the Santander account.
They pay interest on balances up to £20K.

The OP is about the lump sum you are allowed to withdraw not the full pension.

cardiff if your pension is a defined contribution scheme, you can take it all as a lump sum.
It’s different with a defined benefits scheme.

Trust bank are paying 2.67% 5 yr bond
You can get between 1.5% to 3% on current accounts, but you need to manage the money.

Always keep some money in easy access accounts just in case.

www.thisismoney.co.uk/money/saving/index.html

You could make improvements to your home and sell later but make sure the improvements will increase the value of your property. Take advice if you go along this route.

There are a number of websites you can get information from.

Don't put all your eggs in one basket

Best of luck

Aha. Thanks JaneA. I misread it. I really liked the idea of the Santander 123 as a friend said it was up to 3.5% but I rarely shop anywhere other than local shops - we only go to big supermarkets three or four times a year to stock up on beer and such so I wouldn’t gain the extra shopping bonus’.

janeainsworth - please read the OP again and I believe you will see there is a clear my lump sum from the pension pot. Not any lump sum or it would have been worded differently. I replied based on the OP as given.

I did read the OP, cardiff.
I was replying to your post which seemed to imply you couldn’t take your entire pension pot as a lump sum.
The OP didn’t specify whether her lump sum was the whole or part of her pension pot.

Thank you janeainsworth. I suppose it depends on how you read it. I take your point about being able to take the entire pension out, according to the new rules. When the OP stated ''my'' lump sum that, to me, indicated a specific amount by a specific decision. And that would be under the old rules. I think we both know the rules.

Grandmamma Peer to peer lending can be profitable, but you can lose everything. I think most advisors would classify it as a high risk investment.

I wouldn't do it if I had anything less than £50,000 sitting somewhere safe and then would limit my peer to peer investment to no more than 10% of my capital.

What is 'future proofing' your house mean ?