For the medium-term, cash deposits might sometimes be the best answer. But it depends on how much risk you’re willing to take with your money to achieve a greater return on your investment.
For example, if you’re planning to buy a property in seven years and you know you’ll need all your savings as a deposit and don’t want to risk your money, it might be safer to put your money into a savings account.
However, bear in mind that your savings will still be at risk from inflation.
This is where the interest you earn on your savings fails to keep up with the rate of inflation so the buying power of your money is reduced.
If your needs are more flexible, you might consider investing your money. This is providing you’re prepared to take some risk with your original capital to try and achieve a greater return on your investment than would be possible by saving alone.