Short term tax efficient “saving”

smash7

I am looking for a short term tax efficient way to distribute approximately £350k

We will need access to the money again within 6-12 months but do not want it just sitting in a current bank account. 

We are two higher rate tax payers and will not have any debt or mortgage. We do not have any current savings (apart from pensions).

My initial thoughts are to both open a cash ISA and max out premium bonds. I don’t expect a huge amount of interest but would like to be tax efficient with as much as possible. 

Many thanks in advance!

eskbanker

£100K in Premium Bonds is likely to be worth doing, but cash ISAs generally less so - however, if you'd pay tax at 40% on non-ISA savings interest (above £500), some cash ISAs should outperform the net interest you'd earn on non-ISA savings, although only for £40K between you.

https://www.moneysavingexpert.com/savings/savings-accounts-best-interest/ lists options for easy access savings accounts but it's pretty slim pickings at the moment.