The upper limit on the amount that can be saved in an ISA account is to go up next year.
The level of increase is determined by the rate of inflation as it stands in the September before the new limit comes into effect in the following April.
The current limit of £10,200 is expected to increase by £470 in April 2011 to £10,670 or by £235 to £5,335 in the case of cash-only ISA accounts.
Half of the total annual sum can be placed in a cash ISA account, and half or all of the allowance saved in a stocks and shares ISA.
It is thought that there are some 20 million ISA accounts in the UK, with savers taking advantage of its tax-free status.
However, nearly half of those savers do not take up the full allowance each year, which means that they lose out on the full tax benefits.