Individual Savings Accounts (or ISAs as they are more commonly known) were introduced a few years ago by the government to encourage people to save. People are encouraged to save by being offered tax breaks and readily accessible funds. A variety of ISAs are now available, some including investment portfolios and other focussing solely on savings.

If you are interested in saving with an ISA the following guide will help you to choose the right one.

Mini ISAs are a versatile investment plan that can involve savings, stocks and shares and other forms of investment in different combinations. You can take out these investments with different providers which accommodates the opportunity to diversify your investment.

Mini cash ISAs are a popular choice with many people as they have very little risk. Mini Cash ISAs work in a similar way to saving accounts and do not involve any form of share portfolio. As your money is not being invested into the success of a particular company or scheme there is no risk of losing your initial investment.

Depending on which Mini ISA you choose you may be able to receive the interest earned each month, quarterly or annually. Access to your ISA may also vary depending on which Mini ISA you choose. Some providers may offer a better of rate of interest in exchange for a longer notice to withdraw funds. Mini ISAs are often well suited for individuals who have less than the maximum investment of £7,000 to put into a savings account.

As the name suggests, stock ISAs are saving schemes that invest capital in stocks and shares. Stock ISAs present an opportunity to earn a better return than mini cash ISAs but there is obviously an associated risk.

With a stock ISA you can’t predict an accurate return on your investment made as the success depends on the state of the stock market during the investment. Generally speaking, the longer the investment continues the better the return will be compared to savings accounts.

The downside is that stock ISAs are entirely reliant on the stock market so if the stock market performs poorly you will also receive a poor return on your investment. It is also worth bearing in mind that you will have to pay charges and also stamp duty in some cases.

Tracker ISAs are investments that track stock market performance. Tracker ISAs offer a marginally more secure investment than stock ISAs as they track the performance of the stock market.

Tracker ISAs may offer a safer investment than alternatives but aswith all stock investments they aren’t impervious to failure. As with all stock investments the return is reliant on the success of the stock market. With a tracker ISA you will generally receive a good return when the market is good but you may not receive as good a return when the market is strong as you would do with a conventional stock ISA.