Storing money whilst we wait for home improvements to start

djheath

I've just changed mortgage deals and this week should be receiving additional funds which will be used for a house extension.  This isn't due to start until around March or April next year.  Is there anywhere I can stick the funds other than in my bank account so that it will accrue some interest? It obviously needs to be risk free and relatively easy access.
Seems a shame it sitting in the bank with terrible interest rates. 

Alexland

Can you ask the lender to delay the release of the money until closer to when it is required?

Albermarle

You can put it in an easy access savings account , paying up to 0.6%

Best Easy Access Savings | Up to 0.65% Variable | moneyfacts.co.uk

Or you could put up to £50K in Premium Bonds . If you have a average luck you will get a return around 0.9% but it could be more or less , but you are guaranteed not to make a loss. 

djheath

Thanks. I was thinking premium bonds too.  A lot of those saving accounts still require it to be locked away for a year and at 0.6% the monthly interest would only be about £20 after tax!  

MX5huggy

The 1st £1000 of savings interest is tax free. But PB’s is as good as anywhere. Time your staged payments on the build so you pay just after the draws at the start of the month.