National Savings have just increased their interest rate on their income bonds to 1.7% from 0.7% on balances less than 25000.
You can invest from 500 pounds,you can access you money without notice.
for more info visithttp://www.nsandi.com/products/ib/index.jsp
You can apply online or by post or at your local post office I think?
100% backed by the treasury so probably a safe place for your money,paying more interest than most bank and building society accounts.