With £500 to invest, you have several options depending on your risk tolerance and financial goals. For low-risk investments, consider high-yield savings accounts, fixed-rate bonds, Premium Bonds, or fixed-rate cash ISAs. These options offer stable returns with minimal risk, making them suitable for conservative investors or those looking to preserve capital.

If you're comfortable with moderate risk, you might consider investing in a globally diversified index fund or ETF. These provide exposure to a wide range of companies, reducing the risk associated with individual stocks. Platforms like Vanguard, Fidelity, or Hargreaves Lansdown allow you to start investing with relatively small amounts. Additionally, stocks and shares ISAs and peer-to-peer lending platforms can offer higher potential returns but come with greater volatility and the possibility of losing capital.

Higher-risk options, such as individual stocks, are generally not recommended for small sums due to the lack of diversification. It's essential to research any investment thoroughly and understand the potential for loss. Consider your financial goals and time horizon before making a decision.