Every little helps: Savings rates might be low but at least an Isa means interest is tax-freeEach year in April, savers are given a fresh Isa allowance that qualifies for tax-free interest.For the 2016-17 financial year - which began on 6 April 2016 - the limit is set at £15,240, all of which can now go into a cash Isa.In the 2017-18 financial year, which begins on 6 April 2017, the limit will increase to £20,000.You can transfer Isa money whichever way you wish between an investment account to savings account, whereas previously you could only shift it from saving to investments.Although cash Isas don't currently offer fantastic rates, it is still worthwhile opening one to shield money away from the taxman. Isa rules state you can only contribute to one Isa per tax year.You can also transfer an old Isa for better returns. Here's a quick guide to Isa saving.It is possible to switch your current year's cash Isa if you move the entire amount, but it is far simpler to get your choice right in the first place.
Banks and building societies should be apologising to savers for the slim pickings on offer here.Savings rates really are dire at the moment and unfortunately, institutions are doing little to shelter savers from the assault of the low interest rate environment.The recent cut to 0.25 per cent for the base rate, launch of a new funding scheme to pump cheap money to banks, and expansion of quantitative easing, has made things even worse. Many now ask themselves why bother?Yet when rates are low it becomes even more important to make sure you are getting as much as you can from your savings. We also think an Isa is still worth having, despite the new tax-free savings interest allowance of £1,000 a year for basic rate taxpayers and £500 for higher rate taxpayers. It's tough to get that much interest now, but one day rates will rise. Money sheltered in an Isa will deliver a tax-free income, even above that £1,000 level and if you are building up a long-term pot, you may one day be very grateful for that.
HOW WE PICK OUR FAVOURITE FIVE ISAS Lee Boyce: This is Money's savings expertOur five favourite Isas round-up is a permanent feature of This is Money.It comes complete with an explanation detailing why we're happy to pick each account.This page will be kept updated as and when new deals pop up or old ones get scrapped.Our team work tirelessly to stay on top of the latest rate changes, but banks and building societies can pull deals without telling us. If you spot a deal here that is not longer available please email us at editor@thisismoney.co.ukRemember, you can open an Isa or transfer (provided you're not tied to a fixed-term) at any time during the year.Note that we don't just copy the best rates from the savings tables - we scour the market for all-around winners. This is a taster of the top deals. For the best rates, visit our savings rates tables, which are comprehensive and independently compiled. It is difficult to now get more than one per cent on an easy-access Isa. This account from Virgin does, but is not strictly easy-access - it only allows three withdrawals per year.
It does allow transfers in. For those who dip into the account four times or more, the rate drops to 0.5 per cent. It can only be opened and operated online. This is the only other easy-access Isa offering one per cent - but only until 1 May 2017, when it drops to 0.75 per cent after the Government-backed provider announced a raft of cuts. It also doesn't allow transfers in from other providers and can only be run over the telephone or online.This account does not have a bonus and allows transfers in. However, only those aged 50 or over can open an account with Saga. This is the top two-year rate available and allows transfers in. It can only be opened online. This is the best rate you can currently obtain on an Isa, but you will have to fix for five years to get it. You can receive interest monthly or annually, and up to £100,000 can be held in this Isa. Body Care & Cosmetics Bras, Panties & Lingerie Winter & Rain Boots Home, Bed & Bath Games & Game Consoles
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