To ask how best to invest £25k short term?

[Pottedpalm]

We have £25k which will be needed in a year or two. Looking for advice on how best to invest it.

Yes this is correct Joyous 👍🏻

It is. I was referring to the post where the poster said that they had around £25k in a 5.2% account which is £1300 annual interest, meaning they'd pay tax on either £300 or £800 depending on their tax rate.

We're currently building our savings and now the rates are better I'm extremely mindful of the personal savings allowance so that I'm not hit with a tax to pay in the future.

Oh yes I am with you now, good point.

With premium bonds you may not get any return at all

With fixed rate bonds you know how much return you will get

With cash ISA's it's tax free but you are limited to 20k investment per tax year

£20k in a cash ISA one year fix. (Unless you have already paid into an ISA this tax year in which case, whatever the rest of your allowance is.)

The rest in a high interest cash saver like Marcus Goldman Sachs (4.75% interest currently). You shouldn't find yourself paying tax on the interest from this as it'll only be about £5k that you put in.

Yes. You can earn £1000 interest tax free.

nationwide currently offer 4.25% on limited access.