The Cash ISA works by simply placing your cash into a savings account, just like any other standard savings account, but with interest paid tax-free. These are designed for long term savers who also have a separate current account.

We at pension calculator update our data every month, we look at the cash ISAs offered by every provider and get the 5 best for the month. This is to give you the information to help you choose what’s best for you and your family.

Banks and building societies are constantly changing interest rates and small print.  We at pension calculator update our information monthly.

These are the best accounts for interest rates, however we strongly advise that you have a look at the terms and conditions before you get an account. While a high interest rate is always good, you may find that the terms and conditions are in fact much worse for you than with the next account that has a 0.5% lower interest rate.

You can take out a Cash ISA whenever you want, but how much you can put in each year is limited. These used to be £3,000 a year, but have increased in the last few years, with the Cash ISA limit for 2011/12 at £5,340. The amount of money you can save by having a Cash ISA over any standard saving account depends on how much you have invested, and the interest rate. Cash ISAs are available to anyone aged 16 and over in the UK.

One of the great things about cash ISAs is that they are tax-intelligent, saving you money. Be aware that savings can be eroded by inflation, having money locked away in an account with interest 2 or 3% below inflation will lose you money.