A reader asked: I have £20,000 to save without withdrawal for two years and need a safe and secure no risk investment. What do you recommend?
Twenty thousand pounds is a significant sum so it makes sense you’d want to protect it. By considering investing it’s clear you also want a way to grow your money. Unfortunately when it comes to investing there are no guarantees and no totally ‘no risk’ investments.
If you can’t afford to potentially lose some of your capital, which can happen with investing, it’s best to steer clear. However you can still put your money to work and grow it, in a smaller way, with a cash savings account.
Cash savings accounts are among the lowest risk places to put your money. Your chances of higher returns are diminished versus investing the money in the stock market, but you will get interest on your cash without the risk of losing any of your original sum.
Interest rates on savings accounts are linked to the Bank of England base rate, which was cut four times in 2025. On one hand this means you’ll get less returns on your savings than a year ago. But on the other hand, interest rates are still above the levels seen in the 13 years up until 2022, so it’s possible to get a better return than in the not too distant past.
The key consideration when looking for a savings account is to try to find one that pays more in interest than the rate of inflation. This way the growth on your savings keeps up with the increases in the cost of goods and services, so your money retains its full spending power.
The Consumer Prices Index (CPI), the measure of inflation, rose by 3.2% in the 12 months to November 2025, the latest data available. The Moneyfacts Average Savings Rate was 3.34% (as of 9th January 2026). So it is possible to find a savings account that beats inflation.
You say you are happy to tie your money up for two years – this increases your chances of finding a savings account that pays the most in interest (because financial institutions reward savers who are willing to leave their cash in their account, untouched, for longer).
A two-year bond could be right for you. This type of account offers fixed returns in exchange for locking away your funds for two years, meaning the interest rate is guaranteed to remain the same throughout the term.
And although it is called a bond, these fixed rate accounts work more like cash savings accounts as you are virtually guaranteed to get all your money bank plus the interest. The best two-year fixed rate bond account is currently with Castle Community Bank, which is paying 4.17% (correct as of 9th January 2026, according to Moneyfacts).
However perhaps the best course of action for you is to put your £20,000 in a fixed rate cash ISA. You can currently put up to £20,000 into a cash ISA (though the rules around this are changing from April 2027, with the cash limit lowered to £12,000 in cash for under 65s).
The advantage of putting your money into an ISA is that any interest you earn on the money is tax-free – unlike with a non-ISA savings account or fixed rate bond (where you could be taxed on the interest). The best two-year fixed rate cash ISA is currently with Aldemore paying 4.02% (as of 9th January 2026).
As ever, whenever you’re choosing a financial institution to look after your money in the UK, make sure they are registered with and regulated by the the Financial Conduct Authority (FCA).
Laura has been a financial journalist for more than 10 years, and was on staff at the Telegraph before going freelance in 2019. Her experience includes hosting podcasts and panels, and she writes for the Times and Sunday Times, Daily Mail, Mail on Sunday and the Sun, as well as trade titles. She now lives by the sea in Aberystwyth, west Wales.
You can contact Laura at laura@goodmoneyguide.com
