It’s an old chestnut but don’t lose your Individual Savings Account (ISA) allowance for 2013 / 2014.
The maximum you may invest is £11,520 with up to £5,760 able to be invested in a cash ISA.
Growth within an equity ISA is tax free as is interest on deposit based ISAs so the advice is not rocket science!
You may only invest in one cash ISA and one stocks and shares ISA in any one tax year and withdrawals may not be made good with additional contributions. You are able to transfer your ISAs from previous tax years to a new ISA provider, for example, to switch to better savings rates or just consolidate equity ISAs. A much under-used ISA feature in my opinion.
A Junior ISA (JISA) are also available to any child under 18 who lives in the UK and who is not eligible for a Child Trust Fund account. During the 2013 / 2014 Tax Year up to £3,720 may be invested into a Junior Cash ISA and a Stocks & Shares Junior ISA. Unlike the Adult ISAs, the annual allowance can be split across either type however desired i.e. 100% cash or 100% Stocks & Shares or split in any proportions.
Money must remain in the account until the child reaches the age of 18 when the account will convert to an ISA.