Top 10 Safest Investments with High Returns for Beginners (UK Guide 2025)
- Pat Harper
- Jul 16
- 14 min read
If you’re a beginner investor in the UK, choosing where to put your money can be overwhelming. You want growth, but you also want to protect your capital. At Total Property Group, we understand the balance between safety and returns.
That’s why we’ve created this guide to the 10 safest investments with high returns for UK beginners in 2025. Whether you’re saving for your first home, retirement, or passive income, these options offer security and growth potential.
Table of Contents
Top 10 Safe Investments of 2025 with the Highest Returns
The list below highlights the Top 10 Safe Investments with High Returns for 2025, ranked and explained to help you choose the right strategy for your needs. From high-interest savings accounts to property investments in thriving cities like Liverpool, these options balance security and growth potential, ideal for first-time investors.
1. High-Interest Savings Accounts (UK)
High-interest savings accounts are the most straightforward way for beginners to earn while keeping their money accessible. With FSCS protection up to £85,000 per bank, your savings are completely safeguarded.
Why is it Safe to invest in High-Interest Savings Accounts?
• Your capital is not invested in volatile markets.
• Instant access accounts mean you can withdraw anytime without penalty.
Potential Returns in 2025
• Challenger banks are offering 4.5 - 5.5% AER, which beats inflation in many cases.
Who Are High-Interest Savings Accounts For?
Ideal for beginners who want a zero-risk option or a place to park cash while planning bigger investments.
High Interest Savings Account Investment FAQs
Q: Are high-interest savings accounts worth it in 2025?
A: Yes, with rates at multi-year highs, they’re a great short-term option for risk-averse savers.
Q: Which UK bank has the safest savings account?
A: All FSCS-registered UK banks offer the same protection, so look for the highest rate and convenient access.
2. Property Investment (UK) – Total Property Group’s Expertise
At Total Property Group, we believe property is one of the safest ways to build wealth for beginners. Unlike stocks or crypto, it’s a tangible asset with a track record of resilience.
Why is it Safe to invest in Property Investment?
• Brick-and-mortar stability – property retains value over time.
• Regular rental income provides a buffer against market fluctuations.
Potential Returns in 2025
• Upto 20% annually (rental yields + capital growth).
• Certain UK cities, especially Liverpool, outperform national averages.
Spotlight: Liverpool – The UK’s Investment Hotspot
Liverpool offers one of the highest rental yields in the UK (6 - 8%) and is undergoing massive regeneration projects like Liverpool Waters (£5 billion) and the Knowledge Quarter. These developments drive up demand and property values.
Off-plan property might seem attractive to beginners, but it often comes with hidden headaches – short leases, rising ground rents and service charges, problematic freeholders, and a tendency to attract short-term tenants. These factors make it far less passive than many realise.
At Total Property Group, we specialise in sourcing 2–3 bed terraced houses in Liverpool. They avoid these issues and typically attract long-term tenants, making them a simpler, more stable investment for hands-free landlords.
Property Investment FAQs
Q: Is property a safe investment for beginners?
A: Yes, especially when buying in high-demand cities like Liverpool with expert guidance and full management services.
Q: Why is Liverpool better than London for first-time property investors?
A: Lower entry prices, higher yields, and stronger growth potential make Liverpool far more beginner-friendly.
3. Fixed-Rate Bonds (UK Bank Bonds)
Fixed-rate bonds are time deposits offered by banks where you agree to lock in your money for a fixed period, usually 1 - 3 years.
Why is it Safe to invest in fixed-rate bonds?
• FSCS protection ensures your capital is safe up to £85,000.
• Guaranteed returns make them predictable.
Potential Returns in 2025
• 4 - 5% annually for 1-3 year bonds.
This is a great option for beginners who don’t need access to their cash immediately but want slightly better returns than instant access accounts.
Fixed Rate Bond Investment FAQs
Q: Are fixed-rate bonds safer than stocks?
A: Yes. Fixed-rate bonds are not tied to market fluctuations and guarantee your principal and interest.
Q: What happens if I need my money early?
A: Early withdrawals may incur penalties, so only invest funds you can lock away
4. Cash ISAs (Tax-Free Savings)
Cash ISAs are a tax-efficient savings option. You can save up to £20,000 per tax year and earn interest tax-free.
Why is it Safe to invest in Cash ISAs?
• No risk to capital.
• FSCS protection applies.
Potential Returns in 2025
• Up to 5% AER on fixed-rate Cash ISAs.
Cash ISAs Investment FAQs
Q: Are Cash ISAs better than savings accounts?
A: If you’re saving a large amount, the tax-free interest makes Cash ISAs a smart choice.
Q: Can I withdraw money from a Cash ISA?
A: It depends; flexible ISAs allow withdrawals, but fixed-rate ISAs may charge penalties.
5. Premium Bonds (NS&I)
Premium Bonds from National Savings & Investments (NS&I) are backed 100% by the UK government. Instead of earning interest, you’re entered into monthly prize draws.
Why is it Safe to invest in Premium Bonds?
• Your capital is never at risk.
• FSCS protection is not needed as NS&I is government-backed.
Potential Returns in 2025 with Premium Bond
• Average prize fund rate of 4.65%, but winnings are not guaranteed. This is to be reduced in 2025 to 3.7% for the prize fund.
Premium Bond Investment FAQs
Q: Can you lose money in Premium Bonds?
A: No. Your initial investment is always safe, though you might earn less than inflation.
Q: Are Premium Bonds worth it for £50,000 savings?
A: They can be, but only if you’re happy trading guaranteed returns for a chance at tax-free prizes.
6. Dividend-Paying Blue Chip Stocks
Blue chip stocks are shares of large, established companies with reliable dividend payouts.
Why is it Safe to invest in Dividend-Paying Blue Chip Stocks?
• Regular income from dividends.
• Less volatility than small-cap stocks.
Potential Returns in 2025
• 4 - 8% annually (dividends + capital gains).
For beginners, investing in blue chip stocks via platforms like Vanguard or Freetrade can be a solid entry point to the stock market.
Dividend-Paying Blue Chip Stocks FAQs
Q: Are dividends guaranteed?
A: No. Companies can reduce or cancel dividends in tough times, though blue chips tend to be more reliable.
Q: What are the safest UK dividend stocks?
A: Utilities, healthcare, and consumer staples are sectors with historically stable payouts.
7. Government Gilts (Bonds)
Gilts are loans to the UK government and are considered one of the safest investments globally.
Why It’s Safe to Invest in Government Gilts?
• Backed by HM Treasury.
• Low default risk.
Potential Returns in 2025
• 4–5% annually, depending on term length.
Government Gilts Investment (Bonds) FAQs
Q: Can you lose money with gilts?
A: If held to maturity, no. But selling early on the open market can result in a loss if rates have risen.
Q: Are gilts good for long-term investing?
A: They’re more suited to income-focused, low-risk portfolios.
8. ETFs (Low-Volatility Funds)
ETFs (Exchange-Traded Funds) give exposure to a basket of shares or bonds, spreading your risk.
Why It’s Safe to Invest in ETFs?
• Diversification reduces exposure to individual company risk.
• Defensive ETFs focus on stable sectors like utilities and healthcare.
Potential Returns in 2025
• 5–7% historical annual average.
ETFs (Low-Volatility Funds) Investment FAQs
Q: Are ETFs safe for beginners?
A: Yes, especially defensive ETFs that are less volatile and focus on stable sectors.
Q: How much should a beginner invest in ETFs?
A: Start with small amounts and dollar-cost average to reduce timing risk.
9. Real Estate Investment Trusts (REITs)
REITs let you invest in property indirectly via companies that own and manage real estate.
Why It’s Safe to invest in REITS?
• Diversified across multiple properties.
• Hands-off investing with regular dividends.
Potential Returns in 2025
• 5–8% annually from dividends and property appreciation.
Real Estate Investment Trusts (REITs) FAQs
Q: Are REITs safer than buying property?
A: REITs offer diversification and liquidity, but they don’t provide the same control or leverage as direct ownership.
Q: Can beginners invest in UK REITs?
A: Yes, most are available on popular investment platforms like Hargreaves Lansdown.
10. Gold or Precious Metals (via ETFs)
Gold has been a traditional safe haven for centuries, offering protection during market turmoil.
Why It’s Safe to Invest in Gold
• Globally recognised store of value.
• Not correlated to stock market performance.
Potential Returns in 2025 with Gold
• 4 - 6% long-term annual average.
Gold or Precious Metal Investment FAQs
Q: Is gold a good investment for 2025?
A: Yes, it’s a solid hedge against inflation and geopolitical risks.
Q: Should I buy physical gold or ETFs?
A: Beginners may find gold ETFs easier and cheaper to manage.
How do I choose the best safe investment strategy for my financial goals?
Choosing the best safe investment strategy starts with understanding your financial goals, risk tolerance, and time horizon. Here’s a step-by-step approach to help you decide:
Define Your Goals Clearly
• Are you saving for a house deposit (short-term)?
• Building a retirement fund (long-term)?
• Or looking for passive income to supplement your salary?
Short-term goals (1 - 3 years) require maximum capital protection, while long-term goals can handle slightly more risk for higher returns.
Assess Your Risk Tolerance
• If you can’t afford to lose any capital, focus on guaranteed options like high-interest savings accounts or fixed-rate bonds.
• If you’re comfortable with some market fluctuations, consider property investment or defensive ETFs for higher potential returns.
Match the Strategy to the Timeline
• Short-Term (0 - 3 years): Savings accounts, Cash ISAs, Premium Bonds.
• Medium-Term (3 - 7 years): Fixed bonds, REITs, gilts.
• Long-Term (7+ years): Property investment, dividend stocks, or a diversified portfolio.
Consider Diversification
A mix of safe assets spreads risk. For example:
• 50% in property (for growth + income)
• 30% in fixed-rate bonds (guaranteed returns)
• 20% in high-yield savings (liquidity).
Get Expert Guidance
If you’re unsure, work with professionals. At Total Property Group, we help investors design hands-off property strategies tailored to their goals, especially for those seeking passive income and long-term growth in high-demand markets like Liverpool.
Why Total Property Group Recommends Property First
Property remains our number 1 recommendation for beginners seeking safe, high returns. With the right guidance and management, property investing, particularly in Liverpool, offers unmatched potential for steady rental yields and long-term growth.
Ready to Start Your Property Investment Journey?
At Total Property Group, we specialise in helping novice investors make confident, profitable property investments. Our experts will guide you every step of the way, from sourcing Liverpool’s best opportunities to managing your portfolio for maximum returns.
Investment Risk Level Table - For Beginners
If you’re just starting your investment journey, it helps to see all your options at a glance.
The table below breaks down 10 of the safest investments for UK beginners, showing their risk level, expected returns, and how quickly you can access your money (liquidity).
This comparison makes it easier to match the right investment type to your financial goals, whether that’s growing your wealth, protecting your savings, or generating passive income.
Rank | Investment Type | Risk Level | Expected Returns | Liquidity |
1 | High-Interest Savings | Very Low | 4.5–5.5% | Instant access |
2 | Property Investment | Low-Medium | Up to 20% | Illiquid (6+ months) |
3 | Fixed-Rate Bonds | Very Low | 4–5% | Locked 1–3 years |
4 | Cash ISAs | Very Low | 4–5% | Varies (ISA type) |
5 | Premium Bonds | Very Low | ~4.65% (not guaranteed) | Instant access |
6 | Dividend Blue Chips | Low | 4–8% | Sellable anytime |
7 | Gilts | Very Low | 4–5% | Medium access |
8 | Defensive ETFs | Low | 5–7% | Sellable anytime |
9 | REITs | Low-Medium | 5–8% | Sellable anytime |
10 | Gold ETFs | Low | 4–6% | Sellable anytime |
Which Option is the Safest Investment for You?
The safest choice depends on your goals:
• Short-term savings (0 - 3 years): High-Interest Savings, Cash ISAs, Premium Bonds.
• Medium-term growth (3 - 7 years): Fixed-Rate Bonds, Gilts, Defensive ETFs.
• Long-term wealth building (7+ years): Property, Dividend Blue Chips, REITs.
At Total Property Group, we recommend property investment as a cornerstone strategy for beginners. It offers tangible assets, steady rental income, and long-term appreciation, particularly in thriving markets like Liverpool.
Diversifying across 2 - 3 of these options can give you a balance of security, growth, and flexibility.
Frequently Asked Questions
What are the safest investments with the highest returns in 2025?
The safest investments with the highest returns in 2025 include high-interest savings accounts, fixed-rate bonds, UK government gilts, and property investments in high-demand cities like Liverpool.
While no investment is entirely risk-free, these options offer strong security for your capital with competitive returns:
• High-Interest Savings Accounts: up to 5.5% AER, FSCS protected.
• Fixed-Rate Bonds: 4–5% annually, guaranteed for the term.
• Property Investment (Liverpool) 5–12% potential annual return from rental income and capital growth.
• Premium Bonds:100% government-backed, prize fund rate.
For beginners, a mix of these can balance safety and growth potential.
How can I invest safely and still get high returns?
To invest safely and still achieve high returns:
Diversify your portfolio across low-risk and medium-risk assets.
Prioritise tangible assets like property, which offer both rental income and long-term growth.
Use tax-efficient wrappers like Cash ISAs to protect earnings.
Seek expert guidance, for example, Total Property Group helps beginners safely enter the property market with fully managed investments in cities like Liverpool.
Remember, higher returns often require slightly higher risk, so understanding and managing risk is key.
What are the top low-risk, high-return investments right now?
The top low-risk, high-return investments in the UK right now are:
High-Interest Savings Accounts - 5.5% AER with full FSCS protection.
Buy-to-Let Property (Liverpool) - strong demand and rental yields of 6 - 8%.
Fixed-Rate Bonds - 4–5% annual interest for 1 - 3 years.
Defensive ETFs - diversified funds with historical returns of 5 - 7%.
Property in regeneration areas like Liverpool offers particularly strong potential while remaining relatively low-risk when professionally managed.
Which investment options offer guaranteed returns with minimal risk?
The only investment options that offer guaranteed returns with minimal risk are:
• Fixed-Rate Bonds - Guaranteed interest for the term.
• UK Government Gilts - Backed by HM Treasury.
• High-Interest Savings Accounts - FSCS protection up to £85,000 per bank.
For slightly higher returns, property investment isn’t guaranteed but offers reliable income streams when done in stable markets like Liverpool.
Are there any safe investments that beat inflation?
Yes. To beat inflation safely in 2025, consider:
Property Investment - Rental income and property appreciation often outpace inflation, especially in high-demand cities.
Dividend-Paying Stocks or ETFs – Historically average 5 - 7% annually.
High-Yield Savings Accounts - With rates at 5.5%, they currently match or beat inflation.
UK Gilts and Index-Linked Bonds - Protect against inflation with fixed or inflation-linked returns.
At Total Property Group, we recommend property for inflation-beating potential and long-term wealth building.
What is the best safe investment for beginners seeking high returns?
The best safe investment for beginners seeking high returns is property investment in high-demand UK cities like Liverpool. With rental yields of 6 - 8% and long-term capital appreciation, property offers a balance of stability and growth.
Other beginner-friendly, safe options include:
High-Interest Savings Accounts (up to 5.5% AER).
Fixed-Rate Bonds (4 - 5% annually).
Dividend-Paying Blue Chip Stocks (historical returns of 4 - 8%).
However, property stands out for its ability to deliver both passive income and long-term wealth creation with professional management support.
Where should I invest £100k for high returns with low risk?
If you have £100,000 to invest and want high returns with low risk, consider:
UK Property Investment (Liverpool) - Off-plan developments and buy-to-let properties offer rental yields of 6 - 8% and potential capital growth.
Diversified Portfolio Approach - Split your £100k between property, high-yield savings, and defensive ETFs for a blend of safety and returns.
At Total Property Group, we help investors deploy £100k into carefully selected Liverpool properties to maximise rental income and long-term growth.
Are government bonds a safe, high-return investment?
Government bonds (gilts) are extremely safe, as they’re backed by HM Treasury. However, they are not high-return investments compared to other options.
Current returns in 2025:
Around 4–5% annually for UK gilts.
For higher returns, consider combining gilts with property investment or dividend-paying stocks in a diversified portfolio.
Can I get 10% annual returns safely?
It’s unlikely to achieve 10% annual returns safely in traditional financial products like savings accounts or government bonds. However, carefully selected property investments in high-growth areas like Liverpool have historically delivered 5 - 12% annual returns (rental income + capital appreciation).
At Total Property Group, we specialise in sourcing these types of opportunities for novice investors seeking higher yields without excessive risk.
What are the safest property investments for high ROI?
The safest property investments for high ROI in the UK are:
Buy-to-Let Properties - in areas with strong rental demand, like Liverpool city centre and student districts.
Off-Plan Developments - allows entry below market value with potential for pre-completion appreciation.
Hands-Free Managed Investments - where professionals handle tenant management and maintenance.
Liverpool stands out as a safe property investment hotspot thanks to its affordable entry prices, high yields (6 - 8%), and regeneration projects driving future growth.
Can I get high returns with no risk in the UK?
The reality is that high returns with no risk don’t exist in the UK or anywhere else. To achieve higher returns, some level of risk is inevitable.
However, there are low-risk options offering modest returns:
High-Interest Savings Accounts – up to 5.5% AER (FSCS protected).
Fixed-Rate Bonds - 4 - 5% annual guaranteed interest.
UK Gilts – 4–5% annually, backed by HM Treasury.
For higher potential (5 - 12% annually), property investment in regeneration areas like Liverpool can deliver strong returns, but it carries some market risk.
What is the best risk-free investment in the UK for 1 year?
The best risk-free investment for 1 year in the UK is a fixed-rate savings bond or a high-interest easy access savings account. Both are:
Fully protected up to £85,000 per bank by FSCS.
Offering returns of 4 - 5% (fixed) or 5.5% (easy access).
If you want complete safety and can leave your money untouched, a 1-year fixed-rate Cash ISA is also a strong tax-free option.
Where to invest for a safe monthly income in the UK?
To generate a safe monthly income, consider:
Buy-to-Let Property (Liverpool) - Monthly rental yields of 6 - 8% with demand from students and professionals.
Dividend-Paying Blue Chip Stocks - Many UK companies pay quarterly dividends.
Real Estate Investment Trusts (REITs) - Regular dividend income without direct property management.
At Total Property Group, we help investors secure Liverpool properties with strong rental demand to create steady passive income streams.
Are there any safe investments in the UK that beat inflation?
Yes. To beat inflation safely in the UK, your best options are:
Property Investment - Rental income and capital growth often outpace inflation.
Dividend Stocks/ETFs - Historical returns of 5-7% typically beat inflation over time.
Inflation-Linked Gilts - Bonds that adjust with inflation.
Savings accounts and fixed bonds rarely beat inflation long term, so a blended portfolio including property is recommended.
How to invest money in the UK for guaranteed returns?
For guaranteed returns in the UK, consider:
Fixed-Rate Savings Accounts or Bonds - Guaranteed interest (4 - 5% annually).
UK Gilts - Government-backed with fixed returns.
Cash ISAs - Tax-free guaranteed interest.
While property investments aren’t “guaranteed,” they can provide more reliable long-term income and growth than any fixed product when professionally managed, especially in high-demand cities like Liverpool.
About the Author
Pat Harper
Pat Harper is a respected buy-to-let property investment writer and market analyst based in Liverpool. As founder of Total Property Group and a regular industry commentator, he brings real-world expertise and data-driven insights to property investors.
Disclaimer
This article is for informational purposes only and does not constitute professional advice. The content is based on our opinions and experiences, but we make no representations or warranties regarding its accuracy or completeness. Readers should not act upon this information without seeking advice from qualified professionals. Investments carry risks, and past performance does not guarantee future results. The author and publisher are not liable for any losses or damages resulting from the use of this information. Always conduct your own research before making any decisions.
Comments