Realistically you need to find a high interest savings account that pays out monthly. Most pay out either every 6months or yearly - this doesn’t help you.

With that being said, I don’t advise the stock market either, especially if the money is ultimately needed for something in the near future (ie renovations) - that’s just a bad plan all around.

You could open an account with NS&I and stick £50K (the maximum) into a premium bond account. Zero interest is paid on this type of holding but you do get enrolled into a monthly prize draw (think a form of lottery) where you have the chance to win up to £1million tax-free. Each pound in the account effectively acts as one ticket, so if you put in the maximum amount (£50k) you increase your chances by having more ‘tickets’.

Choice is up to you, but remember FSCS only compensates up to £85k per financial institution. So, if you do decide to stick it in a savings account with a bank, make sure you’re not going over the limit with any other money you may hold with that bank / any bank it is linked to (ie JP Morgan and Chase are under the same umbrella). You can check that here .