Savers will be able to save £20,000 a year in an ISA from April 2017, Chancellor George Osborne announced in today's Budget.
The allowance – which for the upcoming 2016/17 tax year will remain at £15,240 – will rise from 6 April 2017 "to further help savers at a time of unprecedentedly low interest rates".
The increase comes alongside the surprise announcement of a new Lifetime ISA from April 2017, giving a state bonus to under-40s saving to buy a home or for retirement.
You can max out your ISA allowance between a combination of a cash ISA (normal savings you never pay tax on), a stocks and shares ISA (where gains are tax-efficient) and from 6 April 2016 the new innovative finance ISA, which incorporates peer-to-peer lending into the ISA system.
The big savings shake-up begins in April 2016, however, when basic-rate taxpayers will be able to earn £1,000 in savings interest outside an ISA before paying any tax, and higher-rate payers will be able to earn £500.