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The countdown is on for anyone who has yet to make the most of their tax-free savings allowances this year.

There are only a couple of weeks to go before the end of the tax year on April 5, so if you haven`t used your annual individual savings account (ISA) allowance this year - act now or lose it forever.

Investments sheltered within an ISA are free from income tax, which means you do not pay any tax on interest and bonuses. You don`t have to do anything either, as the ISA manager will claim back all the income tax on your behalf.

There are also capital gains tax (CGT) advantages from investing in an ISA. All gains from any investment sold within an ISA are free of CGT. ISAs can also help cut down on the time spent filling in your tax return, as they don`t need to be included.

You can save up to £3,000 in a mini cash ISA this tax year, plus up to £4,000 in a mini stocks and shares ISA if you are prepared to accept a high level of risk.

Alternatively, you can invest the full £7,000 allowance into what is known as a maxi stocks and shares ISA, but this means you can`t put anything into a cash ISA.

You could have over £140,000 invested in a tax-free environment if you had taken advantage of the government`s tax-efficient saving options since they were first introduced. If this money had been invested in the average UK All Companies Unit Trust you would have over £300k today.

And if you`d been lucky enough to invest in the best performing trust you would have over £750k which would be completely tax-free in your hands.

Sophie Neary, product director with BeatThatQuote.com says: "Make sure you read the small print before opening any ISA and if you are investing in stocks and shares, be aware that these investments can go down as well as up.

"If you are investing in a cash ISA, then check to see if the advertised rate includes a bonus that drops away after a few months. If an account does have a bonus included, make sure you keep a close eye on rates, particularly once the bonus period ends."

You should also check if there is a `transfer out` penalty - some ISA providers will impose a charge if you want to move your money elsewhere, whereas some will let you switch without imposing any charge. It`s also worth checking if the ISA you choose has any guarantees that the rate won`t drop below a certain level for a while.