Bag £223 in minutes

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With the end of the tax year less than two weeks away, we show you how you can make some easy cash in minutes.

Market research consultancy firm Mintel found that 35% of adults in the UK admit to having less than £500 reserved for a rainy day and 19% have no savings at all.

If your money is languishing at a low rate, you may be £223 better off by switching to a competitive tax-free Individual Savings Account (ISA).

It’s no secret that the interest you will earn on savings accounts isn't ideal but with the UK still struggling with economic recovery, sheltering cash from the taxman may be the best way to earn yourself a decent return this year.

Inflation now stands at 4% under the Consumer Price Index, making it difficult if not impossible for a saver to earn a decent return from ordinary savings accounts.

Here is what you can do

The Halifax ISA Direct Reward account offers a rate of 3.0% AER with unlimited penalty free withdrawals. With this account you can make unlimited deposits throughout the tax year up to £5,100.

What’s more, if you are an existing Halifax customer your rate increases to 3.2% AER. If you’re not already a customer, you could sign up for the Halifax Reward Current Account prior to opening this particular ISA and you will get an additional £60 a year if you pay in £1,000 per month.

If you were to invest the maximum allowance of £5,100 at 3.2% AER with the Reward Current Account you could receive £213. (£153 from ISA interest and £60 from the current account)

With the tax burden set to jump sharply this year, it's more important than ever to take advantage of your annual ISA allowance. You can invest £10,200 in a stocks and shares ISA or you can put half of that amount into a cash ISA and the remainder in stocks and shares.

Although low interest rates and repaying debts have hindered savings, some ISAs can be opened with a deposit as low as £1.

Banks and building societies have launched higher paying ISAs to attract your business before the end of the tax year.

Uncertainty about when the central bank will increase the base rate has spurred savers to opt for instant access and short-term fixed-rate deals. Many high-paying accounts are available for savers transferring existing ISA funds along with their allowance for this year.

These investments can prove to be wise considering many accounts drop to unsavory rates when the initial term is competed.

Source: BeatThatQuote.com. Rates correct as of 21 March 2011

ISA facts

-Adults over the age of 18 can invest up to £10,200 this tax year of which £5,100 can be cash. The limit increases to £10,680 next year of which £5,340 can be cash.

-Cash ISAs are tax free which means the cash you deposit is exempt from income and capital gains tax.

-You can invest in a cash ISA or a stocks and shares ISA or both types up to the limit.

-Cash ISAs can be converted into stocks and shares but investments can not be turned into cash.

**This material is for information purposes only and should not be considered financial advice. We strongly encourage our readers not to rely solely on this content, but to seek independent advice when making financial decisions.**

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