What to do with a small lump sum

cornishman_2

We took out a savings plan in 1991.  It matures in 12 months, although we could cash in today for £34,000.    But, is there any point investing that money?   Most savings accounts are at 0.1%.  I don't really need to spend it.    But what is the best return I can get for stuffing it somewhere?

DiggerUK

Would be interesting to know what the plan was, how regular were the payments and how much you put in.  If you are happy with the return to date then consider cashing in. 

Savings are little better than 1% today so what is your plan for the cash. If you do cash in consider Premium Bonds, somewhere between 0% and a million..._

Albermarle

 But, is there any point investing that money?   Most savings accounts are at 0.1%.  I don't really need to spend it.    But what is the best return I can get for stuffing it somewhere?

There are plenty of savings accounts paying more than 0.1%. Plus as mentioned there are premium bonds , which with average luck will pay around 1.25% 

https://moneyfacts.co.uk/

If you want to invest ( not the same as saving) then a Stocks and shares ISA is the simplest way forward. However this only works as a long term plan ( >10 years ) and in the meantime its value could go up or down.

Or you could  do both .

Eco_Miser

If you do decide to have a Stocks and shares ISA, you can only invest £20,000 before 6th April 2021, then the remainder (up to another £20,000) between 6th April 2021 and 5th April 2022 inclusive.

RobM99

Obviously I don't know your details, but if I were you I'd look at paying up any debt first. If you have none, maybe a few options; eg  £10,000 premium bonds (it's like  the lottery but if you lose you get your money back), £15,000 in a one-year fixed term bond, £8,000 in an easy-access, and the remaining £1,000 on whatever you like !

grumiofoundation

Eco_Miser said:

If you do decide to have a Stocks and shares ISA, you can only invest £20,000 before 6th April 2021, then the remainder (up to another £20,000) between 6th April 2021 and 5th April 2022 inclusive.

Presumably as the OP used 'we' (assuming not royalty) they could open a Stocks and Shares ISA each and then can invest all immediately. 

edwardbovis

DiggerUK said:

Would be interesting to know what the plan was, how regular were the payments and how much you put in.  If you are happy with the return to date then consider cashing in. 

Savings are little better than 1% today so what is your plan for the cash. If you do cash in consider Premium Bonds, somewhere between 0% and a million..._

(Sorry Screen name change.  MSE Messed up my account)
The plan was with a company called Pearl, bought out by someone else... We (wife and I)  paid £41 a month and so the return was quite good I think.  

JDKD

I am considering buying premium bonds are there any risks to investment of several thousand pounds?

eskbanker

JDKD said:

I am considering buying premium bonds are there any risks to investment of several thousand pounds?

Depends what you mean by risk - you're guaranteed to get back what you paid in, so the capital itself is protected in that sense, but it will have lost real-terms value to inflation by the time you redeem them.  With the return being driven entirely by luck, you stand a good chance of achieving lower than average returns (albeit a good chance of above average too), especially with a small holding.