Can anyone suggest a good place to deposit some money, destined for eventual house purchase, in Euro. I am looking for 30 or 60 day notice, ie almost no risk for a medium return.

You could go to a bank and get a certificate fo deposit. I had one I kept renewing for a few years. Once you become resident they withhold tax on it though. My recollection was the tax rate was around 30%. But the interest rate was pretty high, so it equalled what I could get at a US bank.

Thanks Bill, Conto Arancio has been suggested as well, anyone got any experience ?

Conto arancio works pretty well, although it needs a main bank account to be hooked onto. At the moment they have an offer of 4,25% for 12 months, but the funds are at call. For Italian residents this is taxed at 27% so it works out at around 3,1% net. You can probably get a slightly better rate at the bank by doing a "Pronti contro termine" (a sale and repurchase agreement) for 30 - 90 days. I recently got 3,3% net for a 30 day PCT. Your funds are no longer at call under this arrangement and breaking it early is probably expensive. It really depends on the notice period that will be acceptable to you.

I am looking at Conto Arancio, right now the offer is for 4.75%, if you introduce someone else (i.e. 3.5% net - funds at call i.e. 3 working days). You can get this by also opening an account in your wife's name. Also there is a deal whereby the rate is now for 15 months rather than 1 year.

Pronti contro termine is at 3.1% net on 60 days