In 2006 it was estimated some 23 million workers were missing out on £3.6 billion in tax-free interest by not taking advantage of the government-offered Isas (individual savings accounts).

Three in four taxpayers were needlessly paying tax on their savings by not investing in a cash Isa, according to a survey by the Portman Building Society.

Previously investors were allowed to save a maximum of £3,000 in mini cash Isas or £7,000 in a maxi Isa in any tax year.However, from 6th April 2008 the terms maxi and mini ISA will no longer be in use and Individual Saving Accounts will simply be referred to as ISAs.

The Portman survey claimed that just 20 per cent of Briton's 30.5 million taxpayers opened a cash Isa back in 2006 and only five per cent held a stocks and shares maxi ISA.

"The level of waste is staggering. Tax paying savers are simply pouring money down the drain if they save in ordinary taxable accounts before using their ISA allowance," said Matthew Wyles, Portman development director.

He added: "Cash Isas are one of the most efficient, secure and simple ways to save"
Make sure you're not one of those missing out on making the most of your tax free savings check out the latest ISA rates and start saving the tax free way.