Totally agree with the above point - as a tax payer, although the ISA allowance is not great @ £3k, you should utlise this tax benefit. There are some good products around at present with 6% on offer.

As always you need to keep an eye on the market to ensure that you are getting a competative rate and with ISA's you can move your funds around albeit not every provider offers a 'transfer-in' facility.

In respect to your Barclays e-saver product I believe that this currently offers 4.75%. If you search the market you will find other similar feature products offering at least 1% extra!!!!

regards

Ok, thanks for the advice

The advantage of cash ISA's is that the interest is paid gross (ie you dont pay tax on it).  The disadvantage is that you can only put a maximum of £3k in during any one tax year, and once withdrawn cant be put back in again if this would result in you exceeding the £3k.

If you are a taxpayer than I would recomend making as much use of cash ISA's as you can.

Hi, I save each month ( no more than £200 a month ) into an e-savings account with barclays which every quarter gains interest. I have heard of Cash Isa's and that the interest is paid monthly. Would there be any gain in moving this money to a Cash Isa and use that almost like a savings account or is just down the the different rates you get?.