If u are saving for a special occasion/reason, u have two choices.

One Deposit Account.

U can invest in either a deposit account or a cash ISA, the current problem is that interest rates are expected to fall, so your final amount returned will also fall, unless u choose a fixed date interest amount against a variable interest amount.

If u are saving for a house deposit research LISA’s.

Two. Government Gilts.

It’s a lot easier to buy Government Gilts (loans) nowdays.

The rule is, if inside a tax wrapper u can choose a higher interest amount but if outside a tax wrapper, a low interest rate with a tax free capital gain.

If we set a date 3 years from now.

Inside a tax wrapper

On the 7/12/2027 the current government will return your cash of par value £100. The next ‘dividend’ is the 7/12/24, then every six months.

U have to pay the current holder of the Gilt the interest already accrued since the last date. U should be able to work out the amount u will have at the end of 2027, 3.73% on the amount invested pa.

Outside of a tax wrapper.

Tax to pay on the nominal interest, u will not lose money as long as u hold until the maturity date. U would currently buy at £93.72 and have £100 returned on the 22/7/2027.

Just two examples but as always best to DYOR.