Plan your tax-efficient ISA savings for this year now

If you have cash to spare, but really can't make up your mind how to invest it, don't leave it sitting in the bank earning a pathetic rate of interest. Since the start of the current tax year you can put up to £3,600 into a cash ISA, and you can switch it into shares later if you change your mind (although not the other way round).

You can also top up your ISA fund to the full £7,200 that is allowed each year for a shares ISA. But remember, if you want to move your current year cash ISA into shares, you must move the whole fund and not just part of it.

Keep the taxman's hands off your savings! Find the Cash ISA that is right for you.

Finally, under the new rules, if you have one or more ISA accounts from previous tax years, you can also switch these savings into shares if you want to - but once again not the other way round, from shares into cash - without this affecting your ISA investment allowance for the current year.

If you are moving money from cash ISAs opened in previous years into shares, you may move just some of the money if you don't want to transfer the lot.

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Annie Shaw
28 April 2008 © Moneyextra.com

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