Wedding fund

Jt282

For obvious reasons our wedding has now been postponed to next year so we have around 11k sat in a current account but we obviously will need to access it in a years time it would be nice to do something with it that’s not risky or should we just split it into two ISAs 🤷🏼‍♀️

bowlhead99

Some bank current accounts are OK, e.g. if you used Lloyds for your banking they pay 1% on the first £5000 in the account as long as you meet the terms and conditions (https://www.lloydsbank.com/current-accounts/all-accounts/club-lloyds.html) so that would be £100 of interest over the year. At Lloyds they also have a 'monthly saver' account where you can drip up to £400 a month across from your current account into the monthly saver account and earn 2% a year interest on whatever is in the saver account, so your average interest rate will be a bit higher than 1% and you would get more than £100 over the course of the year.  There are other interest paying current accounts, that's just one I use and they are not a bad bank, the accounts come with some freebies such as magazine subscriptions, which add to the overall value of what you are getting from the account, for the hassle of setting it up.  Nationwide Flex Direct for example is 2% but only pays it on the first £1500 in the account for the first year, and they no longer have a high rate paying regular saver account that they used to offer.

For an easier life (no messing around to meet the terms and conditions of a current account), £11k in premium bonds for a year would probably get you £100-£150 of premium bond prizes over the course of a year, based on typical luck, but might be more or less (the prizes when you get them come in £25 chunks with a very small percentage of them being bigger). Prizes are tax free.

You could split the money into two separate ISAs as you suggest, but if there is only £11k to save and it's only going to generate £100-200 of interest over a year until you withdraw it, you probably wouldn't value the benefit of the 'tax free' status you get with an ISA, because nearly everyone has a personal savings allowance to earn £500-£1000 of interest income tax free in a year (depending on personal tax position). So if looking for a general instant-access or one year fixed term savings account, no need to restrict yourself to ISA accounts.

xylophone

https://www.nsandi.com/income-bonds
Above might do - you could also open a Direct Saver and send the monthly interest back to that?