It's still worth a flirt with TESSA.
After that you can't start a new one but existing TESSAs will be allowed to run their five-year course.
All the interest earned on TESSAs is tax-free on capital that stays in the account for five years.
Legal & General have just launched one paying a variable 7.9 per cent on balances of pounds 3,000 - the most you can put into a TESSA in its first year - and 7.4 per cent on lower sums.
The minimum input is pounds 1,000. The most you can salt away in any TESSA in stages over its five-year life is pounds 9,000.
If you've got pounds 9,000, you can put pounds 3,000 into L&G's TESSA and the rest into a feeder account, which pays a taxable 7.9 per cent.
The rest will be transferred annually into your tax-free TESSA.