What to do with £40,000

[Cahu58]

Where can I put £40000 that I can invest for about 5 years without having access to it. It has to be 0 risk as I will need the money when I hopefully retire early at about 60 ish ? TIA

For zero risk,
www.moneysavingexpert.com/savings/savings-accounts-best-interest/#fixedsavings

Look at the five year fixed rates and with that amount consider going via Rasin as there is cashback for larger investments.

Zero risk - nothing exists for that as you will have inflation risk if it is put in a savings account or fixed term bond.

I read zero risk as being the amount cannot drop rather than the amount cannot have less purchasing power. To be fair inflation is hovering around 2% and those five year bonds are 2.6% so at least they are the right way around although to someone (me) who remembers double digit interest rates nothing on offer today looks good.
As to what inflation will do over the next five years? who knows, there are too many variables to consider both economically and politically.

Premium bonds and get prize money paid back in until it reaches £50,000

Then don't ask for Internet or phone access

You do have the ability to take it out but without Internet or phone access it will be much harder and more effort so won't be done on a whim

£50,000 is the max you can invest in PB that is why I mentioned it

If you view interest rates going up in near future then doing a 2 year bond and then a 3 year bond may work.

In 5 years what will the money be used for? If for a first home and you are under 40, then looking at a cash LISA may be useful (though only £4k can be put in each financial year but you get a £1k topup - so that beats a lot of other types of savings).

Thanks everyone, it's to put towards an early retirement hopefully. All I can see is a fixed rate bond of 2.75 tops.

Are you working? Do you pay tax?

If so, why not put it in your pension and get the tax relief?

My house deposit is sitting with Castle Trust in a 2yr bond..... Can't access it unless I die! Longer you leave it locked in, better the interest.

You might be better off moving it around savings accounts with introductory rates. Might have to split it into chunks as many only accept smaller amounts. You can get around 3% but obvs would be liable for tax.

Get what you can each year into an isa again around 3% but obvs tax free.

If you want zero risk, you're going to have to put in a bit of leg work.

Thanks for all this advice. My pension is with the pension protection fund so I can't add to it.

I'd put it into premium bonds, OP. You should get quite a few small payments at least with that amount.

Or you could test it - put half into premium bonds and half into ISAs.

How about something like this? www.thehousecrowd.com

I made 10% last year on something similar. Same type of thing different website

I have £40,000 in premium Bonds and generally win about £100 a month. I'm not sure how that compares to interest payments on that amount in a bond?

Speak to an ifa

Some sort of structured deposit would work. e.g www.investec.com/en_gb/intermediary-investment/structured-products/deposits.html

If the FTSE 100 is above its initial level in 6 years, you get 42% bonus, for example.

Capital is protected, so if it's lower, you get your money back.

You would need to invest via an advisor who would charge you for the privilege though.

You can open another personal pension if you like, you can have as many as you want