Fixed rate bonds are still the best way to secure a decent amount of interest on a large pot of money (barring investment on the stock market). So, if you want to set your savings aside and not think about it for a year or five, you would do well to consider the best fixed rate bonds currently available.
Other advantages include knowing exactly how much you’ll get out of the pot, due to the fixed interest, and having your savings shielded from any downturns in the market. Of course, knowing how much interest you will get each year also means you can know beforehand if you’ll need to worry about taxation.
Since any interest above £1,000 is taxed (£500 if you are a higher rate taxpayer and all of it if you pay tax at 45%), those who have a large enough pot for this to be relevant may want to look at fixed rate cash ISAs instead. Alternatively, if you have a small pot of money but would still like to gain a decent amount of interest, regular savings accounts offer high interest rates on monthly deposits of usually up to £500. Or there’s high interest current accounts to consider, to get a potentially great interest rate without having to lock away your cash.
Remember, however, that there is nothing stopping you from having several different types of savings accounts. Indeed, it would be quite sensible to have an easy access account for emergency funds, plus a fixed rate bond for savings you don’t need to keep to hand, as well as maybe an ISA to take advantage of your annual ISA allowance.