The cash you put into your ISA, which has been provided by your bank or a provider that is regulated, is protected by the Financial Services Compensation Scheme (FSCS). That means they guarantee your money if the bank or ISA provider goes bust, up to £85,000.
Cash ISAs are a good option for saving if:
1. You want to earn tax-free interest on your savings
2. Are over 16 years of age
3. Resident in the UK
You can only open one Cash ISA each year.
Beware of fixed-term cash ISAs offering very high interest rates. In these ISAs you are taking a gamble on the performance of an index, like the FTSE100 (index of biggest 100 companies in the UK) or a commodity price (like the price of oil or gold). You may get no income or capital growth (growth of your money), and charges may be deducted from your capital as returns on your investment can be dependent on a number of rules.
If you want to compare rates available on Cash ISAs, a good place to start is comparison websites like www.moneysupermarket.com. You can also find more information on Cash ISAs at www.moneyadviceservice.org.uk and http://www.moneysavingexpert.com