What’s the Best Way to Invest 100k in 2022?

Daniel Williams
Daniel Williams
Senior Property Writer
Updated 02 January, 2022
7 Min Read
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    1. Property

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    2. Stocks

    Savings Account
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    3. Savings Accounts

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    4. Bonds

    Peer to Peer Lending
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    5. Peer-to-Peer Lending

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    6. Cryptocurrency

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    7. SIPPs


    Whether you’ve inherited a cash windfall or have some money to spare, you might be wondering: 

    What’s the best way to invest 100k in 2022? 

    In this guide, you’ll learn about seven of the best ways to invest 100k for income and capital growth in the UK. This guidance is general information about different methods of investing, and if you want specific advice, talk to a financial advisor. 

    Sound good? Then let’s get into it:


    How to Invest 100k UK

    Investing can be complicated, but that shouldn’t stop you. 

    Through investing, you can use your cash to make even more money and (ideally) become financially independent if you play your cards right. 

    Whether you’ve inherited a cash windfall or have some money to spare, you might be wondering: 

    What’s the best way to invest 100k in 2022? 

    In this guide, you’ll learn about seven of the best ways to invest 100k for income and capital growth in the UK. 

    Sound good? Then let’s get into it: 

    But before we get started, there is some jargon that you’ll need to familiarise yourself with. 

    1. Asset – An asset is something of value that can be used to convert to cash. It can also be used to generate regular income. 
    2. Investment vehicle – Another name for an asset, investment vehicles are a place to put your money to help earn more. Examples of this include pensions or stocks and shares ISAs. 
    3. Tax Wrapper – An account or asset that wraps around your investment to protect it from taxes. Examples include pensions and ISAs. 

    You also need to consider whether you want to invest for income or growth.  

    Income will put more money in your bank accounts each month, while growth means you’ll need to wait for the long-term before selling your asset for a big cash payout. 

    Where to Invest 100k in 2022 

    With more people than ever starting to invest in different assets to build an income, investing correctly can ensure the health of your financial future for decades to come.  

    But how should you invest your 100k to get the returns you want? How should you invest 100k today?  

    Below you will find seven of the best ways to invest 100k in 2021 for income and capital growth. 

    Where to invest 100k? Check out the best strategies below:  

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    1. Property 

    Return Potential:  ★ ★ ★ ★ ★  

    Risk:   ☆ 

    Likely the most popular asset class for investors in 2022, property is one of the safest (and best) ways to invest 100k in the UK. 

    Ideal for both income and capital growth investors, you can earn returns from buy to let property in two main ways: 

    1. Rent: Income earned every month and paid by the properties tenant—currently an average of £1,064 per month in the UK. 
    2. Capital Growth: The increase in a property’s value over time. Over the last 12 months, the average UK property price increased by 10.01%. 

    The UK property market exploded in 2021, with record-breaking house price and rental income growth despite the Covid-19 pandemic. 

    This has filled many investors with the confidence to add a property to their investment portfolio, with real estate known to perform well during times of uncertainty. 

    Just keep in mind that property is not a liquid asset, which means you can’t quickly sell to see investment returns like stocks or bonds. 

    Likewise, real estate can get expensive, with a current average property price of £270,708, according to the Land Registry. 

    However, if you have the cash needed for a mortgage deposit and are asking how to invest 100k safely, property could be a top choice in 2022. 

    Please read our complete guide to buy to let property to learn more or the best areas to invest in 2022. 

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    2. Stocks 

    Return Potential:  ★ 

    Risk:  ★ 

    If you can handle risk, stocks can be one of the best ways to earn huge returns in 2022.  

    Able to earn both income and capital growth, stock investments are when investors purchase a small part of a company through the stock market.   

    By doing this, investors can earn a portion of a company’s profits through dividends paid monthly, quarterly, or annually.   

    However, dividends aren’t always sizeable, and some companies don’t even pay dividends, instead opting to reinvest profits.   

    Question is: 

    How do I invest in stocks and earn regular income? 

    Well, investors will need to purposefully invest in high dividend-paying stocks or exchange-traded funds (ETF) to increase their short-term profits and generate income streams.  

    Barclays Equity Glit Study found that stocks have generated 5.4% annual returns over the last 50 years. 

    However, stock prices can wildly change, which can either net you a massive profit or deliver a gut-punching loss. 

    As such, for those asking for the best way to invest 100k safely, stocks may not be for you as it performs poorly during times of uncertainty – hence the 2020 stock market crash. 

    3. Savings Accounts 

    Return Potential:  ☆ 

    Risk:  ☆ 

    If you want to know how to invest £100,000 safely without any risk, you could consider putting money into a savings account.  

    Types of savings accounts you can consider are:  

    • Instant Access – Can take and add money at any time.  
    • Notice Account – Need to give notice before withdrawing money.  
    • Regular Saver – You’ll need to save up a set amount each month.  
    • Fixed Bond – An account that locks away your cash for a fixed amount of time.  

    While savings accounts won’t secure strong income streams, like property or stocks, they help keep your money safe while growing in value over time.  

    You can also consider an ISA, like a Cash ISA or stocks and shares ISAs, allowing investors to save up to £20k per year tax-free while delivering higher returns than a standard savings account. 

    You could even opt for a general investment account if you reach your cash ISA total (more on this by Vanguard). 

    Want to know the best part? 

    For most UK savings accounts, your cash is protected up to £85,000 in the UK as per the Financial Services Compensation Scheme.  

    4. Bonds 

    Return Potential:  ☆ 

    Risk:  ☆ 

    Want to know how to invest 100k today? Maybe bonds are the answer. 

    Not to be confused with fixed bond savings accounts, bonds are fixed-income investments typically used by companies to generate cash.  

    Companies (or even governments) will borrow money from investors and pay it back at a fixed interest rate.  

    Types of bonds include corporate bonds and government bonds. 

    Each bond is rated AAA to C based on its risk, with C bonds being riskier but offering higher returns.  

    Bonds are seen as a decent alternative to stocks as they have distinct advantages.  

    For starters, the fixed term interest rates mean you will know what you’re getting yourself into and the exact money you’ll see in return.  

    Likewise, if a company liquidates, bondholders are paid first before stockholders.  


    Fixed-term interest can be a double-edged sword, as it will likely limit the overall return you can get compared to buying a risky stock on the stock market.  

    You can buy bonds anywhere from £1,000, so they are worth putting some money into, but may not be the best answer for how to invest 100k cash.   

    5. Start Peer-to-Peer Lending 

    Return Potential:   ☆ 

    Risk:    ☆ 

    An alternative to savings accounts, peer-to-peer lending cuts out banks from the investment equation and sees investors lending cash directly to other people.  

    The benefit of this is that you will likely see better returns as you’ll more profits without the bank taking a cut.  

    You can lend and apply for loans via peer-to-peer lending platforms.  

    Examples of which include:  

    • Lending Club  
    • Upstart  
    • Peerform  

    Sounds good, right? But what’s the catch?  

    Well, at the time of writing, P2P lending is not covered by the Financial Services Compensation Scheme. 

    Likewise, borrowers could default on payments and be unable to pay you back.  

    For this reason, investing all of your 100k into this asset may not be the best decision.  

    6. Cryptocurrency 

    Return Potential:   ★ 

    Risk:   ★ 

    While not offering much in the way of income, cryptocurrency is an exciting (albeit confusing) asset for capital growth investors. 

    Cryptocurrency is a digital form of currency traded via online platforms.  

    In other words: 

    Investors will purchase a unit (or a fraction of a unit) and then hold onto it like a stock and let it grow in value.  

    Each unit of cryptocurrency is worth a certain amount of money, with investors able to sell to get a hold of their real worth.  

    (For instance, one unit of Bitcoin is worth just over £28.5k in February 2022).  

    A 2021 report from The Times found that Bitcoin investors saw a whopping 525% return over the last 12 months. 

    Yes, you read that right: 525%. 

    So, what’s the catch? 

    It’s risky.  

    A financial expert quoted in Time magazine said about Bitcoin: “You have a high chance of losing it all, but a small chance of winning it big.  

    Naturally, if you’re looking at how to invest 100k safely, this is not the option for you.  

    7. SIPPs 

    Return Potential:   ☆ 

    Risk:   ☆ 

    Are you looking to avoid investment risk? Want to know how to invest 100k for retirement? 

    Then saving with SIPPs is the way to go.  

    SIPPs, otherwise known as a self-invested personal pension, is a do-it-yourself pension. 

    For those who don’t want a pension company to control how their savings are invested, SIPPs allow investors to choose how to build and manage their pension.  

    The SIPP then acts as a wrapper and will hold onto the investments until you decide to retire.  

    There are two types of SIPP: 

    • Full SIPP: This offers the broadest choice of investments but incurs the highest charges (typically an annual 1% charge for a £50k pot). It’s better suited for bigger budgets.  
    • DIY SIPP: This provides plenty of investment opportunities but doesn’t include owning property. They’re also offered by investment platforms. DIY SIPPs are better suited for smaller budgets with a charge of £10-£15 for online transactions.  

    Via SIPPs, you can choose to invest in various assets, including stocks, bonds, ETFs, property, and even offshore funds.  

    While you won’t get regular income, SIPPs are a good strategy if you have one eye on your future retirement.   

    What Is the Best Investment for £100,000? 

    So, what’s the best investment for 100k? 

    Like most questions of this nature, the answer is always the same: 

    It depends. 

    Investments are a personal choice, and it will entirely depend on your goals for the best way to invest £100k. 

    If you want to be completely safe but limit your return potential, savings accounts or self-invested personal pensions are the way to go. 

    On the other hand, if you’re willing to risk your cash for the best chance of long-term returns, stocks or cryptocurrency could be ideal. 

    However, for the best midpoint, rental property could likely be the best way to invest 100k in the UK. 

    By investing 100k in real estate, you can get access to regular rental income each month while also enjoying considerable returns in the future through capital growth.  

    And don’t just let the price put you off.  

    There are ways to reduce the entry price of a property by making an off-plan property investment. 


    Your income can be taxed through income tax and capital gains tax, although some tax relief is available. 

    If in doubt, speak to a financial advisor to see if real estate investment is the right choice for you. 

    What Are the Best Things to Do With £100,000? 

    Seek Independent Financial Advice 

    Before you invest money and set your financial goals, speaking to a financial advisor is always a good idea. 

    Investments can be far more complex than just the money you need, as your personal or financial circumstances can impact what sort of investment is right for you. 

    Your age, tax bracket, marriage status, attitude to investment risk, and investment timescale can all come into play. 

    By talking to an expert, you’ll be able to explore these options and settle on the right asset for you. 

    This is how you invest 100k wisely. 

    Consider Active or Passive Investing 

    Depending on how much free time you have available, you may need to decide whether you should actively or passively invest. 

    • Active investing is when investors take a more hands-on approach. This can include self-managing your stock portfolio or becoming a landlord. 
    • Passive investing is when investors take a more “buy and hold” mentality and wait for long-term growth. This can include waiting for stocks to grow in price without reacting to dips in the stock market. 

    There’s no correct answer here, and it will likely depend on your confidence and skillset whether you choose to invest actively.  

    You may also find that traditionally “active” strategies can be passive. 

    For instance, you can invest in stocks managed by a fund manager or investment manager.  

    They will monitor the stock market and use their expert analysis to determine which stocks to buy and sell. 

    In property terms, this could mean buying a rental property and using a property management company to handle all landlord duties. 

    (This is key if you’re asking how to invest 100k for passive income, as you’ll want a hands-off investment). 

    Understand Your Risk Appetite 

    When deciding how to invest your 100k, you need to consider how much risk you’re willing to take. 

    Unfortunately, every investment comes with risk, and there’s no way to get a guaranteed income stream as things can go wrong.  

    But some strategies come with more risk than others, with stocks and cryptocurrency often seen as the riskiest. 

    The trade-off is that the riskier an investment, the higher potential for returns. 

    How to Invest 100k Safely 

    Where’s the best place to safely invest 100k? 

    You have a few options if you want to manage risk and keep your 100k investment as safe as possible. 

    Likely the safest asset class is real estate, as it very rarely gets impacted by short term fluctuations – take the Covid-19 pandemic, for instance. 

    However, for the safest investment possible, your best bet is to choose a savings account, cash ISA, or SIPP.  

    These options won’t net you the highest earnings, but they’re a good way to protect your cash until you feel more ready to invest. 

    Diversify Your Investment Portfolio 

    While having 100k in your back pocket might give you the confidence to splash the cash on a big purchase, most investors find a diversified portfolio the best way to invest 100k. 

    Creating a diversified portfolio means investing in several different investment markets. 

    Someone with 100k could choose a property investment strategy while putting some cash into stocks or a savings account. 

    By doing this, you’ll limit the impact of one of your investments performing poorly. 

    As the saying goes: 

    Don’t put all your eggs in one basket. 


    We hope you’ve enjoyed our guide to the best way to invest 100k in 2022. 

    If you’re looking for the best investment for 100k or where to invest 100k in UK 2022, then property investment is likely the best choice for you. 

    It offers a less risky investment than stocks or cryptocurrency while providing higher returns than savings accounts or SIPPs. 

    However, be sure to diversify your portfolio and avoid putting all your eggs in one basket. 

    It would help if you also spoke to a financial advisor to get advice on the best thing you can do with your 100k. 

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    Alternatively, if you want to read more about investing, RWinvest is the perfect place to learn. 

    Take a look at some of our articles below: 

    Disclaimer: This guide is not investment advice and should only be used for information. If you want financial advice, please speak to an expert. The content in this guide was written in February 2022. By the time you read, the data and information provided may no longer be accurate. Always conduct your own research when looking for the latest data. 

    How to Invest £50k

    What if you don’t want to use your full £100k savings to invest? Maybe you want to start out small, or split your £100k budget across different investments?

    If you have a smaller budget of £50k, find out how to invest your money for the best returns with our guide to investing £50,000.


    Everything You Need to Know About Property Investment

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    If you’re interested in putting your hard-earned money towards an investment in property, learn some much-needed information with our ultimate guide to property investment.

    Daniel Williams
    Daniel Williams
    Senior Property Writer

    Daniel Williams is a senior property writer at RWinvest. Regularly publishing in-depth articles on topics such as the best investment areas in the UK and guides on how to invest, Daniel has a keen eye for statistics and analysing property market changes.

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