saving

josef2311

Hello

I'm a 66 year old pensioner with no income,   where I can invest £ 200000. And get the highest interest rate.

soulsaver

Savings accounts: 0.7% easy access or up to 2.05% fixed (moneysavingexpert.com)

Robin9

What do you do for money to live on?    Are you likely to need say £1000 / month for that ?

Even 2.05% isn't great for income - that's about £4000 a year and you will find yourself dipping into what at first sight is a big pot.

When do you get your state pension ? Have you had a prediction ?

cattie

You say you're a pensioner, so do you have private or the state pension being paid at the moment?

london21

Bnaks offer crap interest rates at the moment.
Either keep in the bank or invest some in a low risk passive fund.

Albermarle

josef2311 said:

Hello

I'm a 66 year old pensioner with no income,   where I can invest £ 200000. And get the highest interest rate.

When you invest money , it means to invest it in things like stocks and shares , which can go up and down .

Presume you meant you want to save the money in  a safe savings account (s) ?

Eyeful

For Low Risk Savings Account you can look here:
https://www.moneysavingexpert.com/savings/savings-accounts-best-interest/
https://www.thisismoney.co.uk/money/article-1583859/Best-savings-rates-General-savings-Internet-branch.html

MEM62

cattie said:

You say you're a pensioner, so do you have private or the state pension being paid at the moment?

OP states that they have no income. 

eskbanker

MEM62 said:

cattie said:

You say you're a pensioner, so do you have private or the state pension being paid at the moment?

OP states that they have no income. 

OP's statement that they're "a 66 year old pensioner with no income" is an oxymoron - either they're a 66 year old with no income or they're a pensioner (i.e. in receipt of a pension), but they can't be both!

Linton

You have 3 main ways to gain an income from £200K.  Here is a top level comparison....

1) Take cash from savings accounts.
Upsides:
 - flexible, you can take what you want when you want
 - easy and safe
Downsides
 - it will certainly fall in real value over time from inflation
 - current interest rates mean this is the lowest income option unless you take money from the lump sum which will reduce the interest you receive in future years.
 - you could run out of money or have to seriously cut back on spending before you die
 - you will have to chase the best accounts

2) Pay for an annuity
Upside
 - guaranteed effort-free income for the rest of your life
 - option to match inflation
 - higher sustainable income than cash
Downside
 - unless you pay extra an annuity dies with you - nothing to any beneficiaries.  
 - no flexibility.  Once you have bought at annuity you cannot then cash it in.
 - currently expensive.  For an inflation linked annuity you may get £4K/year, perhaps twice that for a fixed rate.

3) Invest in the stock markets
Upside
 - likely to be highest income option.  For £200K you could reasonably hope to sustainably take £6K-£8K inflation linked
 - flexible, you can take as much or as little money as you want when you want
 - when you die the money you haven't used can go to beneficiaries
Downside
 - nothing is guaranteed.  Even if the investments are properly managed the value of the investments will certainly fluctuate by say 10%-50% over time but  over the long term it should increase by more than inflation.  Broadly, the less the fluctuation the lower the return.
 - some knowledge is required to choose and manage investments.  You either learn to do it yourself or pay someone else  


The best option for you would depend on how much income you want, how much you want it, whether you care what happens after you die, attitude to risk, personal wishes and circumstances etc etc.  If you want to take an annuity or wish to invest in the stock markets given the size of your lump sum it could well be worth paying for advice from an IFA.

MEM62

eskbanker said:

MEM62 said:

cattie said:

You say you're a pensioner, so do you have private or the state pension being paid at the moment?

OP states that they have no income. 

OP's statement that they're "a 66 year old pensioner with no income" is an oxymoron - either they're a 66 year old with no income or they're a pensioner (i.e. in receipt of a pension), but they can't be both!

I am taking the "with no income" as a clear statement.  It is possible that they are of pensionable age and not working, hence using the word pensioner to describe themselves, but are not entitled to the government pension and have made no other retirement provision.  As the OP has not been back we may never know.