With interest rates continuing to remain at an all-time low and inflation hovering around the 2% mark, it is difficult for savers to get any meaningful return on their investment.

But the use of tax-efficient savings products assisted by Budget announcements, can help boost an individual’s finances.

Individual Savings Accounts (ISAs) have been around for some time and provide tax-free income and growth while within this investment.

These have been revamped following the Budget.

There are two types of ISA: cash ISAs and stocks and shares ISAs and a saver can have one of each.

Cash ISAs may be suitable for short-term savings, so that you can get at your money easily.

Stocks and shares ISAs may be appropriate if you can afford to leave your money untouched for longer than, say, five years.

However, your investment may go down in value as well as up and there are no guarantees that you will make a profit.

To open an ISA you have to be aged 16 or over if the ISA is a cash ISA or 18 or over if the ISA is a stocks and shares ISA. You also have to be resident in the UK for tax purposes.

For those who have not already used their 2013/14 ISA allowances, there are a few days left to invest up to £11,520. For a cash only ISA the limit is £5,760.

From April 6, 2014, the overall ISA saving limit will be increased to £11,880 of which £5,940 can be invested in cash.

Following the Budget, ISAs will be reformed into a simpler product, the ‘New ISA’ (NISA) from July 1, 2014 ,with all existing ISAs becoming NISAs.

The subscription limit for NISAs is set at £15,000 and any amounts invested into an ISA between April 6 and June 30, 2014, will count against this limit.

NISA savers will also be able to subscribe the full amount into a cash account and for those aged 18 or over they will have the flexibility to switch between stock and shares and cash investments.

For younger savers, the subscription limits for Junior ISAs and existing Child Trust Fund holders will be increased from £3,720 to £3,840 from April 6, 2014, and then to £4,000 from July 1, 2014.

For both these investments, no withdrawals can be made until the child reaches 18, but they offer the possibility of parents, grandparents, other family members and friends saving towards the child’s future educational costs, whatever they will be!

Although not currently on sale, NS&I Index-linked Savings Certificates are an excellent tax-free vehicle as your investment will grow in spending power each year, whatever happens to the cost of living.

That’s because they ensure the value of your savings is guaranteed to grow ahead of inflation as measured by the Retail Prices Index (RPI), when held for at least a year.

Those who currently have such certificates can roll them over into new certificates on maturity.

Another NS&I account which offers a tax-free return is the Children’s Bond which allows parents and grandparents to invest up to £3,000 per child over a five- year period.

The current bond offers a return of 2.5% pa guaranteed over this term.

Investors not seeking a regular or guaranteed return on their investment may want to consider buying Premium Bonds to shelter income from the taxman.

The current maximum amount that can be invested is £30,000, but following the Budget this will rise to £40,000 from June 1 and to £50,000 from 2015/16 with the possibility of tax-free prizes being won.

Two monthly jackpot prizes of £1m will also be offered from June 1, 2014, which would definitely give an investor a significant return in these dim days of saving!

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