Receiving an income from investment

intalex

Check out NS&I - Income Bond.

100% secure, decent rate of return which is paid gross (but is taxable). Rate moves up with BoE rate rises. No penalties for withdrawals either. Interest can be paid into an account of your choice (I suggest opening a regular saver for that if you aren't going to use that income).

It's perfect if you just want to leave all your money in one place and not bother too much with playing around with it. Not one for an enthusiastic MSE, as you won't be maximising your returns, but it's hassle-free.

dunstonh

100% secure, decent rate of return which is paid gross (but is taxable). Rate moves up with BoE rate rises. No penalties for withdrawals either. Interest can be paid into an account of your choice (I suggest opening a regular saver for that if you aren't going to use that income).

And watch your capital get eroded by inflation.

It's perfect if you just want to leave all your money in one place and not bother too much with playing around with it. Not one for an enthusiastic MSE, as you won't be maximising your returns, but it's hassle-free.

Its wasteful. Not perfect. 10 years down the road, that £50k will have the spending power of 35k. The income that is paid out will be lower in real terms as well. Unless you build some element of growth into it, you are experiencing the equivalent of a stockmarket crash every 7-10 years in real terms by using a product like this.

For the brief that has been given, Gilts are probably the best option but they are limited and I think the OP should move up the scale just a little bit. That doesnt mean take a big jump to the other extreme.