Individual savings accounts are ideal for those looking to find a safe haven for their cash during a recession, with the FTSE and the Dow Jones both suffering greatly since October 2007, investors have been looking for a more secure option to save. Even the bond markets have been tested by the downgrading of national credit ratings. Only available to UK inhabitants, ISA savings give tax favourable status to those who take this financial product. They replace the PEPs and TESSAs which have been accused of being narrowly targeted at higher income groups, ISAs have been criticised for being overly confusing although their purpose was to appeal to those less familiar with finance.

This savings option sits alongside other tax free investment options the government offers through its national Savings and Investment programme, offering products such as premium bonds, where the interest is accumulated in a common pot then divided by lottery with prizes ranging from $50 – £1,000,000. For the less adventurous individual looking for a steady return, one of the range from either cash ISAs or stock and shares ISAs would be more appropriate. However, in this time of uncertainty, cash ISAs are becoming an increasingly popular choice as no one can be certain whether the current rally in the stock markets will continue, a more secure savings option is required by investors.