Get the juiciest returns at the start of the tax year

With an extra 20 per cent now allowed to be saved tax free and returns one per cent higher than last year, there has arguably been no better time to invest in an ISA.

With the tax-free allowance now up to £3,600 and the top paying ISA coming in at 6.5 per cent AER, the traditional rush for ISAs in March each year may well be replaced with an April stampede in 2008.

Kevin Mountford, head of savings at price comparison site moneysupermarket.com, said: "Up to 80 per cent of ISAs are opened in the six weeks before the end of the tax year, but there are lucrative opportunities right now for early birds.

"Rates on cash ISAs are, on average, one per cent higher than this time last year and with market conditions being so strong for savers, there may have never been a better time to invest.

"Those with a lump sum to put away should make the most of the new £3,600 tax-free allowance and put the money into a leading cash ISA, such as the Barclays Tax Haven ISA at 6.5 per cent.

"At 6.3 per cent, the Scarborough BS Notice Mini Cash ISAis the highest paying option if you want to transfer money in from another lower paying ISA."