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Our assistant editor Lee Boyce picks his five favourite cash Isas for savers in 2021 - essential reading to help you choose a top savings account for your money.

This top Isa round-up has keeping our readers updated on the best savings deals since 2014 - and is kept up-to-date throughout the year - bookmark it for the very latest developments.

How an Isa works and why you should have one

Each year in April, savers are given a fresh Isa allowance that qualifies for tax-free interest. 

For the 2021/22 financial year, starting 6 April 2021, the limit is £20,000.

Piggy five: We round-up the best tax-free deals - and it is slim pickings at the moment

You can transfer Isa money whichever way you wish between an investment account to savings account, whereas previously you could only shift it from saving to investments. 

Although cash Isas don't currently offer fantastic rates, it is still worthwhile opening one to shield money away from the taxman.   

Isa rules state you can only contribute to one Isa per tax year.

You can also transfer an old Isa for better returns. Here's a quick guide to Isa saving.

It is possible to switch your current year's cash Isa if you move the entire amount, but it is far simpler to get your choice right in the first place.

Rates are low and that makes the best Isa more important

Banks and building societies should be apologising to savers for the slim pickings on offer here. 

The best buy easy-access rate on a tax-free account has plunged under 1 per cent for the first time while no major bank comes close to featuring on the list. 

It also comes at a time as inflation races higher, leaving all savers with a serious headache.

Savings rates really are dire at the moment and unfortunately, institutions are doing little to shelter savers from the assault of the low interest rate environment.

The coronavirus crisis cut to 0.1 per cent for the base rate, launch of a new funding scheme to pump cheap money to banks, and expansion of quantitative easing, has made things even worse. 

Many now ask themselves why bother?

Yet when rates are low it becomes even more important to make sure you are getting as much as you can from your savings. 

We also think an Isa is still worth having, despite the new tax-free savings interest allowance of £1,000 a year for basic rate taxpayers and £500 for higher rate taxpayers. 

It's tough to get that much interest now, but one day rates will rise. 

Money sheltered in an Isa will deliver a tax-free income, even above that £1,000 level and if you are building up a long-term pot, you may one day be very grateful for that.

And who knows if the personal savings allowance will be around forever - it is much more likely to disappear than the Isa wrapper.

You may also want to look into stocks and shares version of an Isa - how to choose the best (and cheapest) DIY investing Isa.

HOW WE PICK OUR FAVOURITE FIVE ISAS

Our five favourite Isas round-up is a permanent feature of This is Money.

It comes complete with an explanation detailing why we're happy to pick each account.

This page will be kept updated as and when new deals pop up or old ones get scrapped.

Our team work tirelessly to stay on top of the latest rate changes, but banks and building societies can pull deals without telling us. 

If you spot a deal here that is not longer available please email us at editor@thisismoney.co.uk

Remember, you can open an Isa or transfer (provided you're not tied to a fixed-term) at any time during the year.

Note that we don't just copy the best rates from the savings tables - we scour the market for all-around winners. 

This is a taster of the top deals. For the best rates, visit our savings rates tables, which are comprehensive and independently compiled.

Our five favourite Isas:  

Cynergy Bank, easy-access, 0.54% [full details]

- Facts: £1 to open

- Transfers in: Yes

- This is Money says: After months of not having a single easy-access tax-free account paying beyond 0.5 per cent, Cynergy Bank - previously known as Bank of Cyprus - have now launched this rate, without a bonus. It can only be opened online and it has FSCS protection, as do all of the accounts in this list. 

Shawbrook Bank, one-year fix, 0.6% [full details]

- Facts: £1,000 to open

- Transfers in: Yes

- This is Money says: If you want slightly more interest, you can fix for 12 months with Shawbrook Bank, based in Brentwood, Essex.

Shawbrook Bank, two-year fix, 0.85% [full details]

- Facts: £1,000 to open

- Transfers in: Yes

- This is Money says: This is the best rate that you can get for 24 months and it too comes from Shawbrook. All of their accounts come with FSCS protection. 

Cynergy Bank, three-year fix, 0.96% [full details]

- Facts: £500 to open

- Transfers in: Yes

- This is Money says: As well as offering the top easy-access rate, Cynergy also has the top three year deal, as fixed-rates start nudging towards the 1 per cent mark once more.

United Trust Bank, five-year fix, 1.11% [full details]

- Facts: £10,000 to open

- Transfers in: Yes 

- This is Money says: The overall best rate on an Isa requires fixing until 2026 and you'll need £10,000 to open. There are a handful of other accounts on the five-year fix list that pay more than 1 per cent. 

THIS IS MONEY'S FIVE OF THE BEST SAVINGS DEALS

Aldermore Bank pays a market-leading 0.5% on its easy-access savings account. It can be opened online with £1,000.

Principality Building Society pays 1.65% to holders of its ‘Thank You Saver’. The account can be opened with £1 but is only open to NHS employees who live in certain postcodes in Wales and Welsh border counties.

Al Rayan Bank pays a tax-free rate of 0.6% on its easy-access Isa. It can be opened with £50 online, by phone or in-branch and accepts transfers. The bank is Sharia compliant.

Shawbrook Bank pays a rate of 1.10% AER interest on its five year fixed-rate cash Isa. The minimum deposit required is £1,000.

Sharia bank Gatehouse Bank pays 1.1% AER interest on its two-year fixed-rate savings account. It requires £1,000 to open.

Check our independent best-buy savings tables