Saving £10k with regular withdrawals

theshortstack

My wife and I have just found out that she is pregnant with our first child and as such we need to find somewhere to save/invest around about £10k to help out with her support when she goes on maternity leave (her current place of work doesn't really offer very much).

Once we have the £10k in place, we'll obviously be making regular withdrawals from it in around 8 or 9 months time.

What's the best place to do this? Given the timelines involved an ISA isn't particularly worth it I'd have thought. Perhaps a high rate current account, but then I believe there are limits on the amount that can be saved and the need for regular deposits.

Could anyone help out please?

Thanks very much,

Archi_Bald

Your best bet is interest paying current accounts. ISAs are a bad choice as their interest rates are very low.

Check TSB Plus to start with. You can each have 2 accounts plus you can have 2 joint accounts. Each account takes £2K, so should take your £10K easily between them. You get 5% AER with them.
For lower interest but a single account that pays 3% AER on £3K - £20K, check out the Santander 123.

BTW, it is saving you are doing. Investing is a long term activity, 5-7 years +.