If you have cash in various accounts , you will find it increasing difficult to find a decent interest rate in the current environment.
ISAs can be the most tax efficient, but ordinary deposit accounts with Building Societies and Banks can offer higher rates of interest than Cash ISAs, outweighing the tax advantages of tax free interest.
As we can now earn £1 000 a year in interest tax free , however for higher rate taxpayers this is only £500. But it is still good tohave and use.
For longer term investing, five years and longer, then stocks and shares ISAs are recommended, if you can handle some volatility in the short term.
ISAs invested in funds or direct shares can provide tax free gains and a tax friendly (not quite tax free) income.
This is most useful in later years when you are looking to maximise income in retirement without paying too much income tax.
Investing for income is a key component in retirement and ISAs make your money work harder for you.