The Flexible ISA from Santander offers one of the best rates on the current market and comes recommended by online financial magazine moneyweek.com

The Santander Flexible ISA offers savers the chance to earn an impressive rate of 2.85 per cent, tracking at 2.35 percentage points above the base rate for the first 12 months.

Flexible Isa holders can open an account with as little as £1 and save up to the annual Cash ISA maximum allowance of £5,100 with instant access to their cash online, at a cash machine, by branch or over the phone, so you won’t be tied into a fixed term.

The account does not permit transfers in from other ISAs, so those looking to move funds from existing ISAs may wish to consider Santander’s other Direct ISA account.

Like any ISA, if you deposit your full allowance then withdraw against it throughout the year, you cannot pay that money back in until the start of a new tax year.

After the 12 month introductory period your ISA will automatically pay a variable rate, currently 0.50% AER tax free, so it may be wise to search for a higher paying account after this time.

Savers can choose to have interest paid into their Flexible ISA accounts or into a different Santander bank account, whichever is the most convenient.

The banking group has also extended its Zero current account package to include other customers.

Those looking for the most attractive current account deals available in the UK may need to look no further than one financier.

In an offer which may also be of interest to those with Santander savings, the lender has extended its Zero account privileges to customers who have a minimum of £10,000 stored in one of its savings accounts.

This development means that some 60 per cent of all current account holders in Britain could qualify for the deal, which also comes with a fee-free debit card for use abroad and has no charge on its overdraft facility.

Vim Maru, director of retail products at Santander, commented that “every one” of the financier’s customers should look into the taking advantage of this deal, as the possibility to save more money should appeal to them.

This comes after Santander recently cut rates on a wide range of its mortgage products.

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ISAs have now been with us for over a decade and it’s now pretty apparent they have proven themselves to be a popular mainstream product. ISAs are enjoyed by all kinds of people looking to make tax-free savings and have even gone through some changes this year that make them even more attractive.

Originally brought in by the government as a replacement for personal equity plans (PEPs) and tax-exempt special savings accounts (TESSAs), there are now well over 19 million ISA accounts in place across Britain. However, there are a number of ISA types available, so you would be forgiven for being a little confused about which one is right for you.

The first thing you might want to consider is whether a fixed rate ISA is best for you or if you would prefer something with a variable rate. The fixed option will allow you to accurately project what kind of return you can expect on your savings, while a variable rate might be better if you want to track the national rate of interest. But once you’ve decided which of these is best, you may still need to address a number of common misconceptions that exist about ISAs. One of these is that they are only suitable for long-term investment. Of course, it is true that your ISA could perform better if it is left to mature for a greater period, but if it is a short-term savings facility you want, you may find they are also well suited to your needs.

When looking for the best ISA rate, you’ll also notice differences between them that relate to how they generate a potential return on your money. A cash ISA effectively operates as a high interest savings account that provides interest that is tax-free. A stocks and shares ISA, on the other hand, will use investments, properties or bonds that can be selected by you or your provider to make your money work harder.

But no matter which of these you go for, you will be subject to a limitation on how much can be put in over the course of a tax year. However, this allowance was revised by the government, which means there is now even more opportunity to save tax-free. From April 6th 2010, all eligible savers can put up to £5,100 into a cash ISA. Alternatively, you can now put anything up to £10,200 into a stocks and shares ISA – less anything you have already put into a cash option.

Surfers aged 50 and over received welcome news earlier this month after Saga introduced its best-buy online instant access account.

Saga has launched a range of savings solutions for the over-50s allowing them to enjoy attractive returns.

The products, exclusively available to savers aged 50 and above, include the Saga online savings account paying 2.75% which includes a 1% bonus for the first year, and the Saga ISA which pays 2.60% tax free including a 1.00% bonus for the first 18 months.

The Saga ISA Saver is a Cash ISA provided by Birmingham Midshires, that provides savers with unlimited easy access to their funds on investments from £500 up to £5,100 per tax year.

The Saga ISA allows savers to transfer some or all of their previous years subscriptions, so there’s no excuse to be earning a low rate.

Alternatively if you’re lucky enough to be aged under 50 or you want to scour the market for the highest rates, consider the Nationwide ISA. This product is also up in the best-buys for ISAs, offering savers 2.75% on balances between £1 – £5,100. The Nationwide ISA currently offers the best instant access rate for an ISA transfer but savers must either have an existing nationwide account or open one before applying.

Savers will have a hard time finding an instant access cash ISA or standard savings accounts paying more than 3%.

The best ISA rates can be had by those that are happy to lock their savings away in a fixed rate ISA. For example the RBS ISA pays 4% if you invest between £3,600 – £5,100 for 3 years with the option to transfer existing ISAs. This means that if you were to deposit the maximum amount into this account you could earn up to £612 for the 3 year term.

www.moneyextra.com Around 1 in 10 people leave their application for an ISA until the last two days before the tax year ends The deadline for ISA application is on April 5th which is Easter Monday and a bank holiday.

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