If you want to save a lump sum then a Fixed Rate ISA offers a tax-free interest rate that won't change during your chosen term.
A cash ISA allows UK residents aged 16 or over to save up to £5,940 tax-free with one provider, each tax year. With most savings accounts, if you are a tax payer the tax man gets a cut from the interest you earn, that's why it's reassuring to know that with a cash ISA all the interest you earn, you keep.
The government has proposed changes meaning that from 1 July 2014 the annual 2014 / 2015 ISA allowance will be increased from £11,880 to £15,000. Under the new rules, you'll also be able to split your £15,000 ISA allowance as you wish between a cash ISA and stocks & shares ISA.
The good news is, whether you are an existing ISA customer or intend to take one out ahead of the proposed changes, you'll be able to use your higher £15,000 ISA allowance at Nationwide from 1 July 2014. Find out more