Last updated at 00:41, Sunday, 11 July 2010

Advertising feature. There are a number of reasons savers might consider the Lloyds TSB range of Cash ISAs as a way to make the most of their money. One of which is the increase in the current annual allowance that means ISAs are even more effective as a tool for long-term tax-free savings.

Each tax year you have an allowance for the total amount you can save in an ISA. From April 6th 2010, the £7,200 limit you can spread across Stocks and Shares ISAs is set to be increased to £10,200, with savers being able to put anything up to £5,100 of this into a Cash ISA. This new limit has been available since October last year for those over the age of 50.

In this year's budget, the Chancellor also announced that in future, the ISA limit will be index linked so it will rise in line with inflation. This means, there has never been a better time to take out an ISA at the start of the new tax year.

There are two types of Cash ISA to choose from – a variable or a fixed rate Cash ISA. For those wanting to invest a lump sum and get a fixed interest rate for an agreed term, our Lloyds TSB Fixed Rate Cash ISA may prove just the ticket. For savers who want to build up their ISA pot over the year and may need instant access to their funds the Lloyds TSB Cash ISA Saver would be ideal.

Whichever option suits your needs, it is important to remember that if you don’t use your full allowance, you won’t be able to carry forward any unused portion to the next year.  Building up your ISA balances like this over the years can provide you with a sizable savings pot for your future.

It is a good idea to compare savings accounts, such as the range of ISA options on offer, to see what suits your savings needs and get your money working harder for you.

Lloyds TSB offers a range of bank accounts and personal finance products. From savings to personal loans, mortgages to credit cards, we also offer a large range of insurance products including home insurance and car insurance. Wherever you want to get to, we’re here to help you on your journey.

First published at 10:04, Monday, 12 April 2010
Published by http://www.dgblife.co.uk