Individual Savings Accounts (ISA)

There is a Tax efficient way of saving with new changes from April 2010. Limit for everyone to £10,200 of which £5,100 can be invested in cash, yet the whole amount could be invested in shares if you wish.

Crucially any unused allowances don't rollover, they are lost for good. An ISA should always be the first place you look to invest as the savings or investments stay within the Tax free ISA wrapper for the future.