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Today's best cash ISAs
You can save up to £3,600 in a cash ISA in the 2008/09 tax year and with interest from your money protected from the taxman, it makes sense to open an account sooner rather than later.
When it comes to picking the best ISA, interest rate is important as obviously you want your money to go as far as possible.
But remember that not all ISAs give you instant access to your cash. Plus, not all accounts allow you to transfer money from a previous year's ISA without affecting your yearly allowance.
When picking an ISA, the first thing to decide is whether you want to fix your interest rate or opt for more flexibility with a variable rate.
Rising inflation may have dashed hopes for an interest rate cut in June but some experts believes rates could still fall.
So, if you want to secure the interest rate you earn on your savings, and are happy to lock your money away for a set period of time, then a fixed rate ISA might be for you.
Principality Building Society offers the best headline rate at the moment with a fixed rate account paying 6.6% AER for six months. This deal requires you to deposit for the full £3,600 upfront - but Principality does allow you to transfer ISAs from previous years.
Another competitive account is Bradford & Bingley's one-year fixed account paying 6.25% AER. Again, you will need to invest the full £3,600, and crucially this account doesn't accept transfers.
If you have less cash to save, then Nationwide and Birmingham Midshires both have accounts paying 6.15% for one year on deposits of £1. Nationwide also offers a two-year account paying 6.15% on deposits of £1.
If you would rather plump for a variable rate ISA, then beware that several of the better rates have vanished off the shelves of late.
However, Barclays Bank continues to offers it Tax Haven ISA paying 6.25% AER on deposits from £1. Remember, this ISA includes a bonus rate of 1% for 12 months. And Icesave's easy access account priced at 6.10% is still available on deposits of £1,000 as is Egg's 6.05% account for deposits from £1.
Finally, Scarborough is still offering 6.05% AER on deposits of £1,000 with its 30-day notice ISA. Transfers are allowed.
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