Stashing some of your hard earned cash is a good way to help plan for the future. You might need to pay off some debt, are setting money aside for home improvements or simply want to keep aside some funds for the future. Whatever the reason, saving some of your income gives you financial freedom and independence as well as greater long-term security and peace of mind.

A savings account can help you to make your money grow and whether you are devising a short or long term savings plan you can be sure to find the right place for your money as there are several savings accounts for a variety of purposes.

If you can set money aside each month and do not need instant access then look for a savings account that rewards you for leaving your cash where it is. Some banks offer competitive rates of interest when you make no withdrawals so take advantage of this if you do not need instant access to your savings.

If you would prefer to be able to make withdrawals from your savings account whenever you need then an instant access account could be the perfect option for you.

A savings account that tracks the Bank of England Base rate also offers the benefit of your interest rate increasing accordingly. Bank base rates are set by the Bank of England and can have an impact on a range of financial products, including savings accounts, so when the base rates increases so will your savings.

If you would rather know exactly how much your savings will grow then a fixed rate savings account could be the answer. A fixed rate cash ISA offers the additional benefit of tax-free savings meaning you get the best of both worlds.

An Individual Savings Account (ISA) is a tax efficient way of saving money that was introduced by the British Government to encourage UK residents to save more. The appeal of an ISA lies in the tax savings that you receive when saving your money in this type of account.

The money you save and the interest gained on your savings are exempt from income or capital gains tax, both of which may have to be paid on other savings and investments.

There are different types of ISA available so make sure you find out more and choose the one that is right for you.

A fixed term savings account allows you to put your money away for a set period of time, usually anywhere between six months to three years, so you will know exactly how much you will get back in return and when you will get it.

Whatever type of savings accounts you want to open you can start off small and progress from there. Having a monthly budget planned out also helps you see where your money is being spent and where you can save even more.

Having been introduced more than a decade ago, the individual savings account – more commonly known as the ISA – has become a popular way for people to save for the future.

Whether you have a specific savings target in mind, or are just putting together a rainy day fund, the tax efficiency an ISA can provide makes them a great option. In fact, they are already something that has very much crossed over into the mainstream.

Brought to the market to replace schemes like personal equity plans (PEPs) and tax-exempt special savings accounts (TESSAs), ISAs have clearly been taken to heart by the general public, as there are so many now in place. By the end of 2009 alone, it was estimated that there were well over 19 million ISA accounts that had been set up across the UK.

There are, however, still some common misconceptions about how Cash ISAs work. One of these is that they are only suitable for those looking at longer term investment. While it is true that there can be greater value in keeping your cash locked away for longer in an ISA, they are also a solid option if you have a shorter term savings goal. If you choose a fixed rate Cash ISA, for example, you can get a pretty accurate idea of what you might have available when it’s term ends.

Once you’ve chosen between a fixed and variable rate, and are happy with the rate you’ve been offered you will be able to save up to a specific amount over the course of any one tax year. In 2010/11, this allowance was raised to £5,100, but the Government has since suggested this may increase year on year in line with the Retail Price Index. But the most notable thing about ISAs is the fact that you will not have to pay any tax on the interest you earn – making them significantly more attractive to some than a standard savings account.

The best way to make the most of your Cash ISA is to invest one lump sum as early as possible in the tax year, as this will mean you can start generating the maximum amount of tax-free interest sooner rather than later. However, you can also make any number of smaller payments up to the yearly limit. Once you’ve paid in up to this limit, you won’t be able to replace any money you withdraw, but as you can pay into it in a way that suits you, you should find it is flexible enough to meet your needs.

People usually get time till 5 April (end of tax year) every year to do savings in ISA to earn interest which is tax free, on the money they save. As the deadlines come nearer, the banks as well as many building societies try to offer higher paying ISAs in order to attract the investors.

Investors have a choice of investing their funds in shares & stocks ISA or the cash Individual Savings Account. If you have already invested in the ISA but would like to shift to some other provider to take benefit of high rate of interest being offered to you and earn some extra bucks before tax year ends, then you have ample time for that, but you must plan now to gain better.

Shares and Stock picks for the Individual Savings Account

If you have any interest in structured plan of 5 year duration, then you have Structured Products from the Investec, offering you a 62.5 % on maturity of its FTSE 100 Geared returns plan Individual Savings Account, however there is no guarantee for the returns and your capital can be at risk.

If you are interested in taking some risk but would not be interested in tying for long duration, then 5 year FTSE 100 Enhanced Kick Out plan ISA from Investec which gives an interest of 9.25 % each year which is fixed with a scope of Kick Out after a year.

Cash Picks for Individual Savings Account

If you are interested in making investment in Cash ISA, then there is a 5 year capital protected deposit scheme of Investec which gives you an annual return of 4.75 % ( monthly 0.38 %) and can even be used for cash ISA transfer.

In the meantime, ING Direct has a Cash ISA which gives you guaranteed 2.50 % per annum. The Natwest offers you a E cash ISA (for customers only), giving you a return of 2.50 percent.

Transfer Picks for ISA

If you have already made investment in ISA but would like to transfer to a better yielding account, then you can go for UBS 5 year structured FTSE Income Plan which is offering 6.50 % interest rate, and is available to you as transfer ISA and shares & stocks ISA.

The Royal Bank of Scotland has a fixed rate cash ISA for three year duration which gives you 4 % returns each year and is available as cash ISA transfer or cash ISA.

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