- Find the right cash ISAs
- Corporate bonds vs cash ISAs
- Which ISA for you?

As interest rates crash to the ground you could be forgiven for wondering if it's even worth putting your money in a Cash ISA. Well, if you will need the money in just a few years' time then it probably is. The rates may be so low you want to cry, but at least it's better than putting your cash in a normal, tax-paying savings account.

However, if you are looking to the longer term then no - I really don't think it's worth it. It would be much better to put your money in a stocks and shares ISA. Personally I like to put my full ISA allowance in stocks and shares products such as Exchange-Traded Funds (ETFs) and Tracker Funds. Many people now are also looking at Corporate Bond Funds. All of these are available already wrapped in an ISA. You just have to ask online or over the phone for your investment to be 'wrapped in an ISA please'!

Do remember, too, that if you feel fed-up every time you look at the paltry interest you're getting with your Cash ISA you can now switch it over to a Shares ISA.

Have a look at our articles on Exchange-Traded Funds and Tracker Funds and choose one that you would like to switch to. Then let the fund know where you want to move the money from when you fill in the form they send you.

Once you send off the form it's up to them to chase the bank for your money. However, my contact, Danny Cox, at Hargreaves Lansdown tells me that the banks are a nightmare to chase and they can take ages to transfer the money...so don't hold your breath!

First Direct's Regular Saver ISA, whilst easily the best ISA as far as rates are concerned, is only really effective if you're a first-time ISA saver. Because you can't transfer a balance from a different ISA account in the first year, it only works if you want to make regular monthly payments (up to £300 a month) - much like a monthly saver account. Also you have to have a First Direct current account in order to get the ISA. Then with that account you have to pay in at least £1,500 every month or you'll be charged £10 a month to maintain it (phew!). So definitely go for this one if you want to get a First Direct current account, and it's your first mini cash ISA but don't bother if you can't guarantee that you will be able to put in at least £1,500 a month into your current account.

If you've already got a cash ISA and you're looking to get a better rate this time around - pickings are pretty slim at the minute. However, the Dunfermline Fixed Rate ISA saver offers the best rate, with 3.75% for a four-year bond.

As with most things financial, it depends on your personal circumstances.

These are the reasons why you might not want to get a cash ISA this financial year:

• You could put a full £7,200 into a maxi shares ISA.

This financial year (until 5 April) you can put up to £7,200 altogether in ISA-wrapped investments either in two mini ISAs (£3,600 in cash and £4,000 in shares) or in one big maxi shares ISA.

In the long term, investments in shares will give usually give you a bigger return. By 'long term' we mean at least five years. So if you're planning to use your ISA allowance to invest for your future, we suggest you put that money into shares.

Of course, if you would like to invest in a mix of cash and shares, having a mini cash ISA and a mini shares ISA makes great sense.

• You're planning to use the extra money to pay off all or part of your mortgage.

This is a great idea, too. Paying off chunks of your mortgage means that you'll be mortgage-free in much less time. You will save loads of money (like tens of thousands of pounds) in interest payments and your gains will be tax-free.

When you pay money into your mortgage and save on interest you don't get charged any tax on that saving, because you're paying off a debt. In that sense, it's similar to putting the money into an ISA.

• You have debts to pay off.

Unless you're being charged 0% interest on your debts, or have a very low interest debt like a student loan, there's no point putting money into any sort of savings account until you've paid your debts off.

The money you make in interest on your savings will be more than wiped out by the interest you're paying on your debts. Pay those off first and then you can start putting your extra cash into savings accounts and other investments.

However, the main reasons you should put money into a cash ISA are:

• You can make more money on your savings than you would in an ordinary savings account, as you don't have to pay any tax on the interest.

• You can take the money out at any time if you suddenly need it and you'll have pretty much the same amount of money you put in, plus a bit of interest.

Money in stock market investments can go up and down wildly in the short term and it's possible that they could be down just at the moment you need to access your cash. So - if you find the stock market way too scary but you still want to invest some money, a cash ISA is a pretty decent bet.

Easy. You get it in the same way that you would set up any ordinary savings account: You can now apply for many ISAs online. Alternatively, if you want a postal one or one that can only be taken out over the counter, write to the bank or building society concerned or go to one of their branches and ask to open up the cash ISA you choose.

An online cash ISA may be easier to pay into, withdraw from and manage. On the other hand, by making your money accessible only by walking into the branch in person, you’re reducing your chances of dipping into your savings without thinking. You know yourself better than anyone so make an informed decision about how much you trust yourself with the money!

Once you’ve opened your cash ISA you can sit back, relax and watch your money multiply. Remember that you can transfer your cash between ISAs (as long as the new ISA you choose allows this). So, keep a close eye on the cash ISA best buy tables and transfer your money as and when you like to take advantage of the top rates.

Just remember that some ISA providers may penalise you for withdrawing your cash early.

Bank or building society: First Direct Regular Saver ISA

Interest rate: 7.00% - fixed rate for 12 months

Minimum deposit: You must pay at least £25 a month into the account via standing order.

Access: No withdrawals allowed.

What's the catch? This is a good option if you can afford to put money in every month and don't need instant access to your cash. However, you must have a First Direct 1st account. And unless you pay at least £1,500 into this account every month, you'll be charged £10 a month to maintain it.

Bank or building society: Halifax Fixed Rate ISA

Interest rate: 3.50% AER

Minimum deposit: £500

Access: No withdrawals allowed.

What's the catch? If you want the full 3.50% AER you won't be able to touch your money for four years.

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