But the new rules announced by George Osborne in the March Budget ‘for savers’ have added a touch of pizzazz to the investment tool, previously seen by many as boring.

There’s a new limit, along with fresh investment options and the ability to mix and match cash with stocks and shares.

The New Isas, or ‘Nisas’, come into effect this week, with building societies and banks all rushing to try to offer investors the best deal, providing a second bite of the cherry for many Isa providers ahead of the end of the tax year next April.

Pensions

But it is not just new savers who could benefit from the changes. These new tools could become an even more important investment tool in all types of investor portfolios, particularly given the new regulations on pensions, and the forecast demand from new retirees looking for tax-efficient ways of making their savings last longer.

Recent research from Standard Life’s annual online survey of so-called ‘baby boomers’ – those aged 55 or above – shows that one of the top five financial regrets of the age group is not to have invested in a stocks and shares Isa. Meanwhile, the biggest regret of all is not to have saved earlier.

The ability to store away up to £15,000 in a Nisa gives investors a substantial additional tool that can also be used in general tax-efficient investing strategies alongside the likes of Enterprise Investment Schemes (EISs), as well as help with inheritance tax (IHT) mitigation strategies.

Awareness

One thing that is clear, however, is that many people are simply unaware of the benefits of the changes to the Isa regime, with research from NFU Mutual noting 26 per cent of UK adults are paying too much tax on their savings and investments. It claims that as many as 12.5 million adults save or invest without using a tax-efficient vehicle, such as an Isa.

Sean McCann, chartered financial planner at NFU Mutual, says: “Putting money into an Isa is one of the simplest things to do to protect it from the taxman, and the rules are set to become even more flexible.

“Smart investors will have already made full use of this year’s allowance, and will be topping up their Isas when the limit increases. It is about time more people did the same and stopped needlessly paying too much tax.”

Millionaires

In addition, research from Fidelity Personal Investing suggests that the new limits could make people Isa millionaires in just 25 years instead of 29, providing they fully maximise their allowance of £15,000 and diversify their portfolio.

Maike Currie, of Fidelity Personal Investing, says: “It is often said that no one ever became a millionaire by leaving their money in a cash account, and with interest rates at historic lows this is more true today than ever.

“While it is important to hold some cash as a ‘rainy day’ fund and some disposable cash to take advantage of new investment opportunities, the beauty of a stocks and shares Isa is that it allows you to invest in a wide range of investment vehicles, such as bonds, equities and funds.”

As the Nisa regime takes effect, it looks like the often overlooked staple of the savings world has finally found its chance to shine.

Nyree Stewart is features editor at Investment Adviser

In numbers – Isas

£11,880 – Total investment limit of Isas between April 6 2014 and June 30 2014

£5,940 – The investment limit in a cash Isa up until June 30 2014

£30,000 – The amount a couple can save tax-free in a Nisa from July 1 2014