Individual Savings Accounts offer the chance for any growth in the value of your savings to roll up free of tax.

This also applies to so-called cash ISAs, savings accounts similar to traditional deposit accounts offered by many banks and building societies (and now fund management groups).

Heavy competition means that it is possible to obtain some attractive rates on your savings. But before deciding where you put your cash, here are some issues to consider:

• Why do you want a tax-free savings account?
  This may seem a strange question, but in practice, but unless you are very risk-averse the benefits of a tax-free wrapper for cash savings are not that great.
  
  On a maximum £3,000 investment paying 5 per cent tax free, annual returns are £150. For higher-rate taxpayers, the tax savings would be £60 a year.
  
  Investing the same amount in an equity ISA should deliver better long-term returns.
  
  
  
• Do you want a Mini or a Maxi cash ISA?
  With a Mini, you can invest up to £3,000 in cash with one provider, but at the expense of being able to save the rest of your £7,000 overall tax-free allowance into shares.
  
  The rules only allow you to put up to £3,000 into a Mini-equity ISA. By contrast, with a Maxi ISA, you can place up to £3,000 into cash and the remainder in stocks and shares. You could put £2,000 in cash and £5,000 in equities, for example.
  
  
  
• Do you want a CAT standard ISA?
  CATmarks are a set of Government-backed benchmarks which ensure savers get a faire deal from their ISAs.
  
  In relation to cash ISAs, it means a minimum interest rates of no less than 2 per cent below bank base rates, easy access to your cash (no notice period) and minimum deposits or withdrawals of £10. But in return for this flexibility, you may receive a smaller return.
  
  
  
• How much of a notice period are you prepared to accept on your cash ISA?
  The longer the notice period, the higher the likely rate of interest you will receive. Conversely, the more difficult it will be to gain access to your funds and the greater the penalties if you break that notice period.
  
  
  
• Do you want a fixed or variable rate?
  Fixed rates often pay a lower initial rate of interest, but at least the rate is guaranteed over one year or more. If rates are moving up, as many experts suggest they might, this is less important.
  
  
  
• Do you want a higher rate for higher sums invested?
  Some ISA accounts have tiered rates, depending on the level of your savings. It pays to check whether the headline rate will apply to your savings amount.
  
  
  
• Is interest added to your account annually, monthly or daily?
  Annual can often seem higher than daily/monthly. But daily or monthly interest is compounded (interest is earned upon the interest). That's why daily interest accounts generally appear to pay a slightly lower rate than annual ones. Always check to find out the rate.
  
  
  
• Do you want an internet, postal, telephone or branch-based account?
  Internet accounts generally pay more than post or telephone, which in turn pay more than branch-based accounts.

For the top rates Click here for Moneyfacts