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How to pick the best Isa: cash & funds

This is Money has compiled everything you need to know about selecting the best Individual Savings Accounts, otherwise known as Isas. Important changes to the Isa market took effect for this tax year so you need to be prepared.

›› Best cash Isa tables

Alternatively, do your own research:
›› Isa account comparison tool

Predictions: What next for the base rate and savings rates?

Don't miss: Beat the Easter Isa deadline
Don't miss: Can I transfer an Isa and get a new one?
Don't miss: Barclays new Golden Isa pays 3.1%
Don't miss: Santander's 3.5% easy access Isa
Don't miss: 3.4% Isa that breaks the mould
Don't miss: Money Mail's advice on picking cash Isas
Don't miss: Can I switch a stocks-and-shares Isa?

The basics: The first thing to know is that you can put your money in either a cash Isa, basically a savings account, or into a stocks and shares Isa - normally a fund that will pick shares, property or bonds on your behalf. Or you can also choose to split your allowance between the two. The first step is to read this guide to tax-free investing.

The next step is to check out the advice-packed news reports and tools below. Savers aged over 50 can top-up their cash Isa by £1,500 from October 6, 2009, and everyone else can follow suit from April 6, 2010. So now is the perfect time to review your Isa holdings.

Happy saving and investing! All the best,
Alan O'Sullivan, savings correspondent, This is Money

Quick-check tools
- Interactive Isa account finder
- Tables: Best-selling Isa funds

Also: - Free service: Order Isa brochures

Cash Isas are fairly simple so there's no excuse for accepting a bad deal. You just need to do your homework - we've done most of that for you so you just need to use the links...(to find the best rates, click here)

Message boards: Advice from readers - Can I use an Isa to help my children save?
- Should I unwrap and re-warp my Isa savings?
- How can I transfer to Santander's 3.5% Isa?
- Is it worth transfering my Isa so late in the year?
- I need help with the new Isa limits!
- How to fight for lost Isa interest
- How is interest calculated on an Isa?
- 'I have an Isa transfer. Just tell me the best rate'
- 'Would it pay to merge my Isas?'
- 'Should I switch Isas to normal savings accounts for a better rate?'
- POST YOUR OWN ISA QUESTION ON THE BOARDS

Advice and analysis from experts and our commentators

• Ones to ditchTime to move your savings out of these low-rate Isas

• Best Isa transfersThe best accounts for those looking to transfer

• The Magnificant SevenWe highlight the best seven cash Isas on the market

• How to make the most of your IsaWe explain how to make the most out of cash and investments

• Improving Isa ratesSylvia Morris on a slight interest improvement

• Best cash Isas offering 2.75%New cash Isa accounts are offering savers up to 2.75% for 18 months

• New Isa allowances from AprilEvidence shows savers are not going to take advantage of their new Isa limits

• Delays still plague Isa transfersWatch out for delays when transfering your Isa to a new provider

• 40 times less interest with IsasCash Isa savers are being paid 40 times less interest than those in similar taxed accounts

• Are banks stealing my Isa cash?Are banks pocketing savers' tax-free allowances? We explain

• Pick the best cash IsaSome basic advice on selecting accounts that won't catch you out

• Isa interest in 2009Discover how little you earned on your cash Isa in 2009

• Taxman ignores Isa tricksThe taxman has been turning a blind eye for years to those who break the rules on Isa transfers and subscriptions, a This is Money investigation reveals

• The rules on cash Isa transfers?Higher Isa limits are here and old accounts pay poor interest rates, so how do you switch your Isa?

Ask an Expert: Cash Isas
• I'm not a Brit - can I open an Isa?
• Are banks stealing my Isa cash?
• 6% Isa offer too good to be true
• I'm 50 in February. Can I put extra into an Isa now?
• When do the cash Isa limits rise?
• 'How late can a fixed-rate Isa bond be pulled?'
• My cash Isa is close to the compensation threshold. What now?
• Can we open a joint account Isa?
• Tell me about fixed-rate Isa transfer rules
• 'Are my daughters too young for a cash Isa?'
• 'Can I transfer from a stocks Isa to a cash Isa?'
• 'When an Isa is better than a pension'

- Ask an Expert: Full saving & banking archive of answers

PUT YOUR QUESTION TO THE EXPERTS

Isas that invest in shares and funds are a little more complicated. The aim is to pick funds that deliver high returns for the lowest risk - but that also carry low charges. For the 2009/10 year you may invest £7,200 into your Isa (or £10,200 for those over 50), and up to £3,600 (£5,100) of this can be invested in cash but if you wish you can invest the full amount into stocks and shares.

From April 2010, everyone over 18 years of age will be able to save up to £10,200 per annum, of which £5,100 can be in cash.

Independent financial advisers can help pick these, but you will pay the full charges on funds in return for this advice (these fees are discounted if you use a fund supermarket). Some experts argue that novice investors should begin with index trackers, low-cost funds that mirror the stock market, or global investment trusts. [Cheapest index trackers]

You may feel more comfortable using an adviser to help you make your decision (find an adviser). You can buy your funds at a deep discount through our Fund Supermarket.

Financial Mail and Money Mail, our sister titles, regularly focus on a fund to see whether it's worth investing in: See the full archive for Fund Focus

Here are a batch of quick-links to some other recent fund tips coverage:

• Should you invest in BRICs funds?
• Should you invest in Bolton's Fidelity China fund?

• More fund tips for: Beginners | High income | High risk

We'd also recommend these links for background and further guidance:

Ask an Expert: Isa investments

PUT YOUR QUESTION TO THE EXPERTS

Calculators

Isa/fund charges
Calculate how much an Isa charge eats into your savings.

Inflation danger
How changes in inflation will impact on your savings.

Long-term savings
How compound interest will affect your long-term saving rate.

Direct investment calculator
The cheapest way to buy Isa funds is via a fund supermarket. Our calculator shows how much quicker your money will grow.

Blogs
- Why the outlook for Latin American funds is healthy
- Warren Buffett has invested... phew
- Why I (the Editor) have invested

Polls
• With 'Isa season' hotting up, what do you expect will be the best cash Isa rate offered (£1 min) before the end of the tax year on 5 April (it's currently 2.65%)?

Message boards: More equity Isa advice from readers

- I'm retired and worried about Isa charges - please advise
- Best performing Isa fund regions in 2010
- 'When do I get Isa interest?'
- 'What should I do about my corporate bond Isa?'
- 'Help! Do I need a maxi isa for my share dealing?'
- 'How best to invest £7000 for maximum returns?'
- 'Isas and Capital Gains Tax'
- 'What's the cheapest way to buy shares?'

Reader offer: free brochures

• European funds
• Emerging markets funds
• Index tracker funds
• Global funds
• Multi manager funds
• Asia pacific funds
• Income funds

Other stories:
 Don't get stung by costly fund fees
 Internet makes it fun to invest
 Peps: the forgotten £75bn
 Funds near record £350bn
 How to buy into top funds
 Isa tips for the adventurous investor

WANT TO KNOW MORE?

• Tables: Best cash Isa rates