When it comes to saving money, ISAs have always been a popular choice. They are a great, tax efficient way to save extra money for a rainy day. There are a range of ISA accounts available from investment specialists to suit all individuals looking to invest their money and earn interest off their savings.

ISAs allow people to save their money in accounts without paying tax on the interest accrued, meaning that the money you invest in such an account is safely yours and cannot be touched by the taxman. There is no income tax to pay, which is particularly valuable if you are a high-rate taxpayer and there is also no capital tax gains to pay, regardless of how much your investment grows over time. It also means that you can double your allowance should you and your spouse decide to save together; each of you can invest up to £10,200 each, saving more money from receiving tax with the flexibility of saving cash or stocks and shares, or even both.

This year though, as part of the 2010-11 Budget, there have been some changes when it comes to taking out and using an ISA account. The current limit for stocks and shares ISAs is £10,200, increased from the previous £7,200, for those aged 50 and over before the end of the current tax year. To take advantage of the current rates on ISAs, an account has to be taken out before the end of the tax year on April 5th. Under this age, the maximum amount an investor is able to pay into an ISA remains at £3,600.

Now to compare ISAs there are two basic types of ISA accounts; cash ISAs and stocks and shares ISAs. Cash ISAs operate similar to saving accounts as they basically allow you to earn interest on the money paid into that account. They are more commonly often offered through banks and building societies and are available to anyone wishing to save money over the age of 16. There are a range of features available on these ISAs to make sure that you get the best value from the account; fixed interest rates, instant access (similar to a regular savings account), regular savings and bonuses.

The second basic type of ISA is the stocks and shares account. Available to anyone over the age of 18, these can either be arranged through a fund, a unit trust, for example, or invested directly into stocks and shares. Investing directly can include investments through shares, corporate bonds and government bonds. One of the main differences between these accounts and the basic cash ISAs is the limit of what can be paid into them; out of the current £10,200 limit, only £5,100 of this can be paid into a cash ISA if you are over 50. This amount decreases to £3,600 for those under. Stocks and shares ISAs are more for people looking to diversify into higher-risk stocks in the hope of reaping higher returns, whereas cash ISAs are for people looking to leave their money to grow at a steady rate, and for an option that won't affect their money too much should they wish to withdraw any.

While it can be seen as the easier option to take out an ISA account with one of the high street banks, it may be beneficial to take a look at investment specialists to find the best ISA. These can often provide you with a more in-depth picture of the investment strategies that are on offer to you, which is key to get right as you can only open one ISA per tax year. If you are taking out a stocks and shares ISA, it can offer a broader range of fund companies to choose from including its own fund base. Investment specialists also work with you to ensure that you have invested your money in the right areas and help to decide what to do next, something that high street banks more often than not won’t.

One thing to consider if you decide to take advantage of the current rates before the tax year ends is that due to the early closing date this year, many providers are asking that all paper applications be with them by April 2nd, while others are requiring online and electronic applications to be submitted up to midnight on April 4th. To ensure you qualify for the current ISA deals, it is important to check with the provider as to when the application needs to be with them in order for it to be processed in time.

From the April 5th, the annual ISA allowance will again rise from £10,200 to £10,680, meaning that should you wish to take advantage of this new rate for the 2011-12 tax year, you must have your application process before this date; this means that you will be able to invest up to £10,680 in a stocks and shares ISA or alternatively £5,430 in a cash ISA and the rest in stocks and shares.

There are a few rules that also must be taken into consideration if you opt for the ISA method of saving money. You must be a UK resident and you must be over the age of 16 for a cash ISA and over 18 for the stocks and shares option. Further, you can only have an ISA in your name alone as there is no option for a joint ISA, yet you are permitted to have more than one ISA registered per home, allowing you to increase your tax-free savings.

Whether you opt for a cash or stocks and shares ISA, investment specialists can assist you in finding the best ISAs to suit your savings. Advice regarding what stocks and shares to invest in and any fixed interest rates can also be a benefit that high street banks and building societies may not provide, ensuring that you get the best out of your money in a country that has been something of a financial rollercoaster in recent years.