Where to save £20,000 for one or 2 years

longwalks1

I will soon be getting £20,000 from a share scheme at work and want to save it for one, possibly 2 years for maximum growth.  I haven't used my ISA allowance for a couple of years so am assuming an ISA is the way forward, what ISA's are offering the highest return please for one or 2 year savings?

Ozzig

Start here  ...

https://moneyfactscompare.co.uk/isa/

and ...

https://forums.moneysavingexpert.com/categories/isas-tax-free-savings

More info about tax status and home ownership will probably be asked by the more ISA-knowledgable forum members.

Ayr_Rage

What is your current amount of interest from other savings and what is your top rate of tax ?

That will influence your decision.

As for rates, Mr Google is your friend, but this site just about covers them all once you have decided if an ISA is suitable.

https://moneyfactscompare.co.uk/

longwalks1

Many thanks people
Ayr-Rage - Ive no real interest from any other savings or ISA's (Ive got a self select S&S ISA but no dividends go into it) and I'm a 40% tax payer on my salary if thats what you mean?

Thanks again

Ozzig

longwalks1 said:

Many thanks people
Ayr-Rage - Ive no real interest from any other savings or ISA's (Ive got a self select S&S ISA but no dividends go into it) and I'm a 40% tax payer on my salary if thats what you mean?

Thanks again

Being 40% sucks all the fun out of normal saving options, so definitely ISA in my opinion.
Have a look at the ISA rates in the links earlier, pick one the one that floats your boat.

Bigwheels1111

Do you know the exact date you will get the money ?.
If so I would find the best fixed rate isa with a long funding window.
ie 30 days to fund.
Lots of good rates are being pulled.

lohr500

As stated above, as a 40% tax payer, an ISA is a good way to avoid paying tax on the interest made.

Another advantage of putting your £20k into a fixed term ISA is that unlike fixed regular savings, you can withdraw the money if you need it, subject to the loss of a given number of days interest. Check the ISA providers small print to find out how many days loss of interest will be involved.
This may be beneficial if you think there is a possibility of you needing some or all of the £20k before the end of the one or two year fixed term.

You could also consider Premium Bonds, but with £20k the MSE calculator says with average luck you might win £750 in a year, which equates to 3.75% growth. Then again, you might win more, or less, but the £20k is safe and any winnings are tax free. 

https://www.moneysavingexpert.com/savings/premium-bonds-calculator/

Personally I would go for a 2 year fix Cash ISA as my gut feel (with no detailed analysis to substantiate this) is that rates will start to fall in the next few months, so better to lock in a rate over a longer term now.