The great thing about NISAs is that any interest you earn is tax free. For example, if you earned £100 interest in a regular savings account you would only see £80 of that.
But with a NISA you keep the whole £100. Any money you deposit into your NISA, and any interest earned, remains cash free for as long as it's in there. So you money really is your money.
With NISAs you can deposit up to £15,000 a year and the slate is wiped clean at the start of every new tax year.
Here's the best on the market:
Post Office
Best for: Easy access
Rate: 1.55% AER variable Minimum deposit: £100 Interest paid: Annually
You can only make two withdrawals throughout the tax year, and if you make more then you'll either reed to transfer or close the account.
Virgin Money
Best for: Long term
Rate: 2.25% Minimum deposit: £1 Fixed term: Three years Withdrawal penalty: 120 days' interest
Nationwide
Rate: 2.2% Minimum deposit: £1 Fixed term: Four years Withdrawal penalty: 320 days' interest
Newcastle BS
Best for: No access
Rate: 2.57% AER variable Minimum deposit: £0 (Penalty if you deposit £0 per month)** Interest paid:** Monthly Access: No