how to maximise interest on small lump sum no risk

darentriskit

Hi everyone I,m new to this so forgive if this message appears in a few different places at first till I get the hang of things !!!!

hi everyone I too like this lady have spent the last two days reading this site and you guys are really knowledgeable and helpful - I wonder if anyone can please help me with my question
i'm 57 with 10k ( poss 17k) to make work over the next 8 years till my state retirement age - house is paid no debts and managing ( just ) on small pension
unlikely to work again ( ill health ) BUT and heres the rub i'm so averse to risking this money its almost making me ill - cos neither can I stand looking at it squandering in my measely 1% e-saver natwest account
I reckon only to risk 10 of it as the rest will be my rainy day fund and I,ve seen that santander 123 give 3% , and Skipton ( just ) 5 year bond @ 3.5%
I do not have an ISA and am wondering would a mix of cash and stocks n share ISA be a suitable low risk - if so which can anyone recommend - I simply cannot put any of the capital at risk so it must be secure -

I suppose I need to ask myself am I wiling to let this be "tied up" and not accessible ( ie 3% saving account 5 year) OR have the hassle of moving my whole banking over from natwest to santander - am I just being lazy? pathetic - or are there other products out there which may better suit my risk averse nature - any advice would be gratefully received - thaks so much

very kind regards

Archi_Bald

This is post number 4 with essentially the same Q. Never mind confusing others on the forum - - you must be confusing yourself!

darentriskit

yes so sorry Archibald - I,m just getting the hang of things now thanks! I have posted another question and would welcome your response - you do seem knowledgeable

finally - will I get better results" drip feeding" into ,for instance First direct @6% and the others mentioned by Little Claire @5% , than stashing the whole10K at once into Santander 123 ?
I do appreciate your help
thankyou

Archi_Bald

darentriskit wrote: »

finally - will I get better results" drip feeding" into ,for instance First direct @6% and the others mentioned by Little Claire @5% , than stashing the whole10K at once into Santander 123 ?

If you use a good feeder account (e.g. the 123), then yes. Use the Regular Savings calculator to see what can be achieved. http://www.moneysavingexpert.com/savings/best-regular-savings-accounts#calculator

BarrBru

Awe I'm really sorry to read your story pal but there is no such thing as NO RISK.

Inflation is higher than what you can earn in interest rates and when you compound that year on year what seems like a 1 or 2% difference reduces the value of your wealth by 20, 30 or more per cent over time.

I can't tell you where to invest but I can tell you I invest my Mum's small ISA savings in investment funds that have a track record going back up 47 years.

Scottish Investment Trust has produced a 7% annual return (total return which means dividend and growth in share price) every year for over 20 years.

City of London has increased its dividend every single year for 47 years.

There are many others too.

I don't wanna tell you what to do but for some people it helps to compartmentalise their money. So, keep the sum you might need in the next 3 or 4 years in cash and invest the rest in funds.