Top cash ISAs for every pocket

Have you made the most of your ISA allowance? Find your perfect ISA here!

This month, the wonderful world of ISAs has been all shaken up. As of October 6th, anyone born on or before 5th April 1960 has been able to stash away up to £5,100 cash in an ISA every year (up from the previous £3,600 limit).

Everyone younger than this will benefit from the same increase as of 6th April 2010.

So, have you made the most of this year's ISA allowance? If you haven't squirreled away the full amount - or if your current ISA rate has fallen behind the pack - now is the time to bag a new one and start earning a decent rate of tax-free interest.

I'm going to highlight the top cash ISAs currently on the market. Whether you want to stash away £10, £500 or £10,000 - there's something here for you.

Best for small beginnings

Many people think they can't take out an ISA because they don't have a large enough deposit. In fact, there are several great ISAs that allow you to kick things off with under £10.

Here are my top three picks:

My first choice in this category is the Cash e-ISA from First Direct. The 3% AER rate offered is market-leading, and it's a particularly good deal because it's fixed (unlike most of the competition) until November 2010.

You won't be penalised for making withdrawals, you can start saving from just £1 and you can transfer money in from other (non-First Direct) ISAs.

Just bear in mind that the account can only be operated online; and you'll need to transfer your cash out after November 2010, when the rate drops to a measly 0.2% AER.

There's a tie for second place, as both the Standard Life Direct Access Cash ISA and the Barnsley BS Online ISA pay a variable rate of 2.65% AER (although the Barnsley ISA includes a 0.75% bonus rate).

Both also allow transfers in from other ISAs and instant, penalty-free withdrawals.

Best for the middle ground

If you have at least £500 to put away, you could bag yourself a slightly higher rate of interest - but at the cost of flexibility.

Here are my top picks in this category:

In terms of the rate on offer, first place goes to the Cash ISA 180 from Chesham Building Society. It offers a (variable) 3.25% AER, which includes a 0.45% fixed bonus until the end of November 2010.

However, you need to weigh up whether that extra 0.25% interest is worth it. This account isn't instant access; if you don't give at least 180 days' notice of any withdrawals, you'll lose 180 days' worth of interest on the amount you withdraw.

And of course, theoretically that variable rate could fall at any time. All this means the First Direct Cash e-ISA - with its fixed rate and penalty-free instant access - is a serious contender for the gold medal in this category, too.

In third place, I've chosen the Reward Saver ISA from Newcastle Building Society. Again, the 3% rate is variable and includes a one year fixed bonus. And with this ISA you'll have to give 120 days' notice of any withdrawals if you don't want to lose the interest for that period.

Best for big savers

If you've got odds and sods of money languishing all over the place, sweeping it all into one ISA could make great financial sense. Here are my top cash ISA picks for people able to put away more than £5,000:

First on the list is the Over 50s Cash ISA from Chelsea Building Society. If you're aged at least fifty, this offers a market-leading variable rate - as long as you deposit £10,000 or more. Balances of £5,100-£9,999 will earn 2.75% AER, while balances of £10,000+ will earn 3.25% AER.

If you can save more than £10,000, you'll be rewarded with the tempting combination of a very juicy rate and penalty-free instant access.

If you're not over 50, or if you have under £10,000 to save, your best bet could well be the Chesham Building Society Cash ISA 180 that I mentioned earlier. Withdrawal restrictions aside, its 3.25% rate is hard to beat if you're looking to stash between £500 and £10,000.

My final ISA pick for bigger savers is the Direct ISA Issue 3 from Abbey - because it offers a very decent combination of rate and flexibility.

You can start saving from just £1 (at a variable rate of 2% AER); but this ISA really comes into its own with balances of over £9,000 - on which it pays a variable rate of 3% AER.

Unlike Chesham's offering, it also allows penalty-free instant access. And unlike the First Direct Cash e-ISA, it can be operated by phone and post, as well as online.

As always, just keep an eye on the bonus; the rate for the Direct ISA Issue 3 includes a variable tiered bonus for the first 12 months, which is currently 2% for balances over £9,000.

Act now to keep the taxman away from your cash!

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