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.

See our Top Cash ISAs and Stocks and Shares ISAs guides for the best buys.

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.

For more on this see our Personal Savings Allowance guide and read founder Martin Lewis's full thoughts on Why the cash ISA isn't dead.

Martin Lewis
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