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Investing a lump sum


Many people get a lump sum at some point in life – perhaps you’ve inherited a windfall, sold your home or have a tax-free sum from your pension. So how can you put it to good use?

Step 1 – Put your money in a savings account

Find a safe, accessible account where the money can earn interest while you do more research.

·         Make sure it’s easy access – you don’t know when you will want to move the money into longer term-investments.

·         If you have more than £75,000, split it between different banking groups – up to £75,000 per person in any one authorized firm is safe even if the firm collapses. This compensation limit applies per authorized firm, not by brand. Some banking brands are actually part of a single authorized firm. Check if any of your banks are part of the same authorized firm and make sure your combined balances don’t go over £75,000. Check bank brands on the FCA website.

Comparison websites are a good starting point for anyone trying to find a savings account tailored to their needs.

We recommend the following websites for comparing savings accounts:

·         Money Saving Expert

·         Money Supermarket

·         Which?


·         Comparison websites won’t all give you the same results, so make sure you use more than one site before making a decision.

·         It is also important to do some research into the type of product and features you need before making a purchase or changing supplier.

·         Find out more in our guide to comparison sites.

Find out about compensation if your bank or building society goes bust.

Step 2 – Do a money fact find

Complete our money fact find to help you pin down what you need from your investments. Sit down, fill it out, and get ready to make a plan.

Savings and investments have to be matched to your needs and goals. Our money facts find questionnaire helps you pin down things like:

·         How your finances stand

·         The things you hope to achieve

·         What might be coming down the track in your life

·         How you feel about money and risk

It gives you (and any professional adviser you use) the right information to assess and choose suitable, affordable and sustainable investments.

Step 3 – Make your investment plan

After completing the money fact find you can pinpoint the investments that suit your needs and plan out how to use your money. This is your savings and investments plan.


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