The Chancellor announced today in his Budget that savers will be able to put more into their Isas in the future.
From next month, the annual Isa limit will rise from £7,200 to £10,200 and ISA limits will then increase annually in line with inflation.
Since their introduction in 1999, Isas have saved the public over £270bn and they have proved very popular.
With inflation expected to be around 2 per cent for the next year, this means the ISA limit will be about £10,400 from 2011/12. Assuming that inflation stays around this mark, the Isa limit will be approximately £1,000 higher at £11,200 within 5 years.
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