Isas are only available via Isa managers who arrange the tax benefits and report details annually to HM Revenue & Customs.
There are lots of resources available to guide the choice of a manager.
Peter Shipp, director of investment schemes for the Tax Incentivised Savings Association (Tisa), says his organisation has a list of members who offer tax incentivised savings - click here. .
Mr Shipp adds the government’s Money Advice Service has a savings comparison tool which will help advisers present a range of options to a client - click here.
He says there are a huge variety of products available to suite the risk profile of any client.
Mr Shipp says: “Be aware that some cash Isas offering higher returns may in fact be structured deposits, where interest payments may be linked to stock market performance.”
Brian Morris, head of savings policy at the Building Societies Association (BSA), recommends the following websites for you to find out which Isa is the most suitable for yourself or a client;
1) Which?
2) Money Supermarket
3) Money Advice Service
4) Money Saving Expert
More information is also available on the HM Revenue & Customs website - click here. .
When attempting to get the best Isa for your client, Ian Highton, financial life planner at Leicester-based Essential Financial Advisers, says you must strip the product apart and separate wrapper from investment.
He says: “The general public have this concept that Isa is a tax wrapper. There is the tax efficiency of the investment but that is only part. The investment within it is a totally separate thing.
“Ultimately the underlying fund is probably replicated across 200 different providers. For example, you could be getting the same Isa from Hargreaves Lansdown as you are from Axa. A lot of the underlying investments could be the same.
“We use external research to look at are if there fees to transfer in or transfer out and the cost of the overall wrapper. If we can find a provider or platform that can provide that tax wrapper at no additional cost then to us, it is a no brainer.
“Most firms will use some type of investment platform, whether it is Skandia, Cofunds, or whoever. Those providers invariably offer the Isa wrapper at no additional cost above and beyond that of whatever the cost is of the platform acting as custodian of the investments.
“That is pretty much across the board. It gets a little bit more complicated when you are looking at other types of wrappers, whether it is pensions or what have you, but with Isa and the level it kicks in charging flat fees is fine until the amounts are relatively low.
“Charging £150 for an Isa wrapper if you are only investing £3,000 is a lot of money. That is why having a focus on the cost is important.”
