Could u tell me if ISA's are best?

I would like to start saving 拢200-拢250/month very soon.
If i invested 拢2,500 after 12 months for example would my interest be greater in an ISA (because it would not be taxed) or some other investment account?I am not keen on any "risk" accounts Thankyou for your help in advance!

ISAs are very good - go for it - youll benefit a lot

An ISA is always the best first option - only when you have "filled it up" to the max (拢3000) should you consider the higher risk options - but check out which bank is giving the highest rate ISA . .

Depends how long you want to tie your money up for.

There are some very attractive no risk bonds. But they will mean tying your money up for 3-10 years generally.

The cash ISA gives you instant access should you wish to withdraw your money at any point. You will usually get a better interest rate the more you have saved in the ISA account. You are able to save 拢3500 per year with a cash ISA.

If you decide to go the ISA route make sure you shop around as the rates vary a lot

Firstly you should complete a risk profile to identify the risk that you are prep aired to take. This ranges from cautious to Adventurous. If you want to take no risk at all then opt for a cash ISA. This is beneficial as you will not have to pay any tax on the proceeds. If you want to take a little risk then opt for a stocks and shares ISA. This does not have to invest in the stock market and can invest in a lot of different assets such as low risk bonds or property. The benefit of doing this is that you can invest up to 拢7,000 per year into a stocks and shares ISA. Any good independent Financial Adviser should be able to advise you of the best way to save based on your individual risk assessment.

Over the long term the interest in a Mini Cash ISA should always be better as you do not pay tax on the interest like a normal cash accounts. NS & I are currently paying 6.3% and it makes sense to use an ISA even if you are a non taxpayer.

Disclaimer:
The answers above are for guidance only and should not be acted upon without you receiving independent financial advice relevant to your circumstances. To find and IFA please call 0800 085 3250 or go to http://www.unbiased.co.uk.

Check with HBOS and alliance and Leicester. They have high interest accounts which may pay more than an ISA after tax has been deducted. Also check on-line for the best ISA deal. Some of them pay a higher interest rate if you can lock your money away for a few years.