Hello, first world problem.
I’m going to be sitting on a pile of money till around September when it will go on an extension for my house. To remove the temptation of spending some and for it to be earning the best rate of interest we’re is best to put it in the short term? We both currently don’t have ISA’s would it be best to start two and then ‘cash out’ when we need the money? The remainder would sit in our joint account.
Thanks

How much cash?

Cash ISA limit is £5760 for 13/14 and then £5940 from the 6th of April and then it goes up to £15k on the 1st of July

ISA is a good option if its below the figures quoted above. You won’t make much in interest but it is safe and puts it out of the way so you can’t easily dip into it. Anything higher return is likely to have risk attached.

Edit. Just to add, make sure interest isn’t paid annually.

ISA’s are ok but they only seem to offer about 1% or less interest.
I was in a similar position and opened a Santander 123 account and used it like a savings account. They pay 3% on balances up to £20k. You can open two of these accounts per household which might be more beneficial.

You need to have 2 direct debits set up on the Santander account to receive interest

I would probably just buy some Premium Bonds.

You may not win anything but your cash will be safe and not so easily accessible that you will spend it.

Thanks, the figure will be between £35 & £40k, I was thinking of 2 ISA’s and maybe premium bonds.