Let's state the obvious - savings interest rates suck at the moment! With the Bank of England recently cutting interest rates a further 0.5%, it is hard to see the value in saving money. But let's not throw out the baby with the bathwater.

When times get tough it is even more crucial to have a savings cushion to cover at least three months of outgoing expenses, in an easy to access cash account. If you think in terms of the game Monopoly, this is the "get out of jail free card" which you always want to have in your back pocket. It just means that if something was to happen, you have a window of three months in which to gather advice and to make a recovery plan. And with layoffs happening throughout British industry, lots of people are facing this situation.

An ISA, or Individual Savings Account, is a tax-free wrapper which allows each individual to save up to £3,600 in cash, free from income and capital gains tax, per tax year. With the current tax year coming to a close on 5 April 2009, it is now or never as once the 6th of April rolls around, you will have missed out on the opportunity to save this year's amount.

If you currently have cash languishing in a savings account at pitiful interest rates you might want to consider that even the paltry interest you are gaining is still taxable. When the sinking boat is taking on water, you want to plug as many leaks as you can. The same analogy applies to your finances. If you are going to receive miserable interest returns on your savings, you might well protect that interest from the Government taking its 20-40% cut (depending on what tax rate you are at).

You can contribute up to £3,600 per year and if you need to use the money you can remove it penalty free. The only catch is that once removed, you can't re-contribute it.

ISAs are simple to open and many only require an initial deposit of £1. Like a bank account, the Financial Services Compensation Scheme will guarantee up to £50,000 deposited into the scheme, so you know your money is safe, and unlike investing in shares or stocks, you are guaranteed to get back any sums you invest plus interest. It is a low risk venture.

How do you get one?

Cash ISAs are available through almost any bank and building society. Even the Post Office and some of the large retailers now also offer competitive ISAs. The main thing is to shop around in order to find the best deal for you.

There is such a vast array of Cash ISAs available that it can be a bit daunting to select one, but a few things to consider are:

- What is the minimum initial deposit required?
- Do you have to make regular deposits?
- Is the money locked in for a set period of time? Some of the better rates of return come if you are able to lock the money in for one or two years.
- Is there any penalty for transferring your money out of the scheme?

Further research is essential, so check out: www.thisismoney.co.uk, www.moneywise.co.uk, and the money pages of the major newspapers - The Telegraph, The Times, The Guardian, and The Observer.