With the a downturn in the economy, it has never been more important to make the most of your savings. One way of getting a good return on your 'rainy day' funds is to open an ISA. But all ISA products are not equal, so you need to know how to spot the best deal.

The first thing you should consider is how much you want to put away each month, and then check that the ISA meets your requirements. If you want to save under £3,600 year a cash ISA is a viable option. But if you want to invest more than that you may be better with a stocks and shares ISA which has a cap of £7,200 per annum. It is best to shop around before committing to opening an ISA account. Many people automatically open one with which ever bank or building society they have been using for years, but don't realize that they might get a far better deal with an ISA operated online.

One of the other areas people often make a mistake is to skim read the small print or not thinking long term enough. There are often deals available which offer exceptionally good short term rates for new savers, but once the introductory offer ends the rate it reverts to is pretty pitiful. If you are allowed to transfer your ISA to another provider after the introductory rate expires that is fine, but some ISA providers include a tie-in period with the contract so you may have to wait to look for a better deal. Sometimes just going for a fairly good but consistent rate pays bigger dividends in the long term.

Make a habit of checking your finances once a year and looking around to see if you are still getting the best rate. It is usually simple to change to a more competitive ISA provider as once you have given your instructions they will do most of the work necessary to move it. Be aware that there may be charges, so you should look at the terms and conditions in the contract.