Where to invest £250K?

VXman

If you want fix rate interest Raisin is a good place to look...

https://www.raisin.co.uk/savingglobal/#/Products

amanda1024

Have you thought about buying an annuity? But if you specifically want savings accounts, how about:
£50k each in premium bonds (£100k)
£20k each in ISAs - and again in April (£80k)
the rest in fixed rate savings on >5% interest (this site has recommendations). Depending on how much other income you have between you, think about how you divvy this up to minimise tax/make the most of 0% tax on savings interest (basic rate tax payers have a £1,000 allowance, if either of you have lower incomes there’s also a starter rate for savings)

ProDave

amanda1024 said:

Have you thought about buying an annuity? But if you specifically want savings accounts, how about:
£50k each in premium bonds (£100k)
£20k each in ISAs - and again in April (£80k)
the rest in fixed rate savings on >5% interest (this site has recommendations). Depending on how much other income you have between you, think about how you divvy this up to minimise tax/make the most of 0% tax on savings interest (basic rate tax payers have a £1,000 allowance, if either of you have lower incomes there’s also a starter rate for savings)

Definitely not an annuity.  The objective is to keep it safe, try and get enough interest to equal inflation and pay as little tax on that interest as legally possible.  so that about sums up how to do it.

Annuity is no good, it will probably be spent in lumps as we tick things off the bucket list.

Albermarle

ProDave said:

I may have confused you.  This is not my entire pension.  I have other pensions some in payment already others soon to be.

This separate pot could be described as our "fun pot"  While our pensions will pay day to day living, they won't do much more than that.  So this pot is what we will draw on as and when needed to ensure our retirement is comfortable, fun and worry free.  So the objective is to protect it, not gamble it.

I suppose you can call long term investing gambling, but if it is it is a gamble with the odds hugely stacked in your favour.
Keeping it in cash will not fully protect it from inflation ( maybe it will in 2024 but not long term) so this is a kind of gamble as well. 
No such thing as No risk.

masonic

ProDave said:

amanda1024 said:

Have you thought about buying an annuity? But if you specifically want savings accounts, how about:
£50k each in premium bonds (£100k)
£20k each in ISAs - and again in April (£80k)
the rest in fixed rate savings on >5% interest (this site has recommendations). Depending on how much other income you have between you, think about how you divvy this up to minimise tax/make the most of 0% tax on savings interest (basic rate tax payers have a £1,000 allowance, if either of you have lower incomes there’s also a starter rate for savings)

Definitely not an annuity.  The objective is to keep it safe, try and get enough interest to equal inflation and pay as little tax on that interest as legally possible.  so that about sums up how to do it.

A ladder of index linked gilts held to maturity may be worth considering in that case, with maturity dates matching your drawdown plans. This will guarantee RPI inflation-linking until 2030, CPIH thereafter. Low coupon varieties are available, and index linking of the principal and any capital gain made at maturity are not taxable. Your inflation adjusted return will be locked in at the point of purchase, so no risk in real terms.