Cashing in on this year's Isas

The new tax year is under way, and inevitably, banks and building societies are touting for business by flashing the interest rates on their individual savings accounts (Isas) in the headlines. If you are planning to open a mini cash Isa, it makes sense to start as soon as possible to make the most of interest payments.

You can save up to £3,000 in a mini cash Isa, and you can only open one account in each tax year. You do not pay any tax on the interest, so the rate the account providers advertise is the rate you actually get, although the headline rates often include bonus interest payments paid when money is saved for more than a minimum of, say, one year.

Many of the offers are for a limited period, and providers say that they may be withdrawn early, subject to demand, so you'd best get cracking if you want to open one. Here's a selection of some of the accounts on offer.

Portman building society's new Regular Saver Isa pays a whopping 7.5%, fixed for 12 months. To get that, you have to make an initial deposit of £250 (by cheque, cash or transfer) and then 11 further monthly payments of £250 (standing order only). Make sure you don't miss a payment or deposit a different amount than £250 though, because if you do, your account will be transferred to the society's Easy Access Isa, which offers a lower interest rate. The Isa has immediate access, less 90 days' interest. This one's only available at Portman branches.

Coventry building society has launched a two-year fixed-rate Isa, Callsave, which pays 5.25%. To qualify, savers must invest a minimum of £3,000, then the rate is guaranteed until the end of March 2007. Full transfers or closures are subject to 120 days' penalty. You can apply for the Isa online or phone 0845 7665522.

Bristol & West has come up with a Regular Saver Isa, which pays an impressive 6%, but for a fixed period of one year only. However, after that the rate is variable, and only guaranteed to pay Bank of England base rate minus 1% - so if interest rates were at today's levels then the Isa may pay just 3.75%. The account is for regular savers, and you pay in a minimum of £20, up to a maximum £250 a month, by standing order. If you miss a payment, there's no penalty, but the payment can't be made up later. Withdrawals are subject to 90 days' penalty and must be for a minimum of £100 for the first year. After that, there's no penalty. The Isa is available from Bristol & West branches or by calling 0808 181 0888.

Tipton & Coseley building society has launched a postal mini cash Isa, the Premier Isa, which offers savers 5.5%, including a 0.35% bonus, only available for the first six months of the account. The minimum opening balance is the whole cash allowance of £3,000, withdrawals must be for at least £500, and require 30 days' notice. As well as this, the society offers a branch-based Isa, which can be opened with £1 and pays 5.05% gross. There's seven days' notice on withdrawals, the number of which are unrestricted.

Yorkshire building society offers a the new 30-day notice Isa, which currently pays 5.25%, (includes a 0.35% extra payment for the first two years), and as the name suggests, allows withdrawals after 30 days' notice and transfers in are permitted. Interest is calculated daily and added annually unless you opt to take a monthly income from your account. The minimum balance is £10.

Bradford & Bingley has launched two mini cash Isas. The first, Regular Saver, offers 6.05% in the first year, reverting to the Bank of England base rate +0.50% after that. You need to save a minimum of £10 a month, up to a maximum of £250, by standing order or over the counter, and interest is paid on the anniversary of the plan. The second is its fixed Isa, which offers 5.25%, guaranteed for three years. There is a minimum investment of £9,000. Of that, £3,000 goes immediately into the current year's Isa, and the remaining £6,000 is held in a feeder account (which also pays a rate of 5.25% for three years, but without the tax breaks). After that, £3,000 is automatically invested in the following year's cash Isa, and the same happens with the remaining £3,000 in the third year.

· Compare interest rates and apply for cash Isas for this tax year here