The ISA limit for over 50s has today risen to £10,200 in total.

Starting today (6 October), people over the age of 50 will be able to save up to £10,200 in tax-free ISAs – half in cash and half in stocks and shares.

The limit on the tax-free Individual Savings Account (ISA) for over 50s has risen from the previous limit of £7,200 in total. From 6 April 2010, the new limit will apply to everyone.

The new limit was announced in this year’s Budget by Chancellor of the Exchequer, Alistair Darling and is available to anyone born on or before 5 April 1960.

Mr Darling said: “I am determined to help savers, because while low interest rates have helped millions of homeowners, I also know that they have hit those who rely on their savings to get by.”

Gordon Brown as Chancellor introduced ISAs ten years ago in an attempt to encourage saving amongst the British population.

According to the BBC, there are now about 19 million people in the UK with ISAs, with five million of them using the full allowance each year.

Each person can open one cash ISA and one stocks and shares ISA each year, with various fixed and variable rates across different banks and building societies.