The best Isas for your cash

The deadline to use this year's Individual Savings Account (Isa) allowance is almost upon us. So if you haven't already shielded your £3,600 (or £5,100 if you are over 50) inside a tax-free cash Isa for this tax year, you haven't long left to do so: the tax year ends on 6 April.

On the plus side the encroaching deadline means that the banks are busy jostling for pole position in the race to get your cash fast. So which ones deserve to win? First a look at the accounts that do not fixed-rate accounts. With the UK base rate still at its all time low of 0.5%, the only way is up. That means you don't want to get stuck with a rate that doesn't change as base rates do: 4% might look attractive now but it won't when the base rate is 5%. Far better is to opt for the best short term deal you can find and move your money as rates rise across the board.

When you are looking at all the Isas out there remember that in order to beat inflation you will need an interest rate of at least 3.1%. Luckily despite the low Bank of England base rate this is possible.

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If you are only looking for a home for this year's Isa allowance and don't intend to transfer other Isa balances in, then Santander's Flexible Isa is your best bet. It pays 3.5% for the first year with an additional guarantee that your rate will be 3% above the Bank of England's base rate for that year (this covers you should rates rise in the next 12 months). You can apply for the account in branch.

Those of you looking for a new home for your existing Isa savings should head to Newcastle Building Society now paying 3%. The Reward Isa accepts transfers, but you will have to give 120 days notice before you withdraw any money. If you don't you will lose 120 days' interest. In both cases make sure you move the money before next April as the rate will have dropped to an abysmal 0.5% in the former and 2% in the latter by then.

Also make sure you follow the rules of Isa transfers. The money must be transferred by the banks themselves. If you withdraw the money from one bank and try to pay it in at the other it will lose its tax-free status and you won't be able to put it in an Isa.

If you want to transfer money between Isas, contact the bank you want to move your money to. They will then give you a form to fill in naming the account and balance that you want to move. Your new bank will then arrange for the money to be transferred within 30 days.