Multiple ISA accounts | Monday 29 Jul 2024 (2024)

FAQs

How many ISAs can I have in 2024? ›

In the 2024/25 tax year, if you wanted to, you could open four different types of ISAs.

The ISA rules have changed as of 6 April 2024. You can now have - and contribute - to as many ISAs as you want (except for Lifetime ISAs and Junior ISAs). Provided you don't contribute more than your £20,000 ISA allowance across them all.

At Spring Budget 2024, the government announced the introduction of the UK ISA . The new £5,000 allowance, in addition to the existing ISA allowance, will provide a new tax-free savings opportunity for people to invest in the UK, while supporting UK companies.

You can take money out of most ISAs whenever you want, without affecting the tax benefits. However, some types of ISAs have specific rules and costs around withdrawing, like the Lifetime ISA. Certain providers may even charge you to make a withdrawal – so always check the terms before you sign up.

ISA providers are required to send information to HMRC about customers who have opened ISAs or contributed to them that year. Don't try to sort it yourself. Keep the account open and don't withdraw your money. Contact HMRC's ISA helpline to explain what's happened – 0300 200 3300.

You won't be able to invest any more in an ISA before you get a new allowance at the start of the next tax year on April 6th.

Putting money into an ISA

Every tax year you can save up to £20,000 in one account or split the allowance across multiple accounts. The tax year runs from 6 April to 5 April. You can only pay into one Lifetime ISA in a tax year. The maximum you can pay in is £4,000.

How many ISAs can I have? You can have as many ISAs as you like, as long as you meet the eligibility criteria for each type. However you can only pay into one Lifetime ISA in a single tax year (up to £4,000) and you can't pay more than your annual £20,000 ISA allowance overall.

"For most people with fixed rate cash ISAs, I can't promise everyone, but certainly enough of you very close to the end of it should be ditching them, paying the penalty, and putting them [the money] in somewhere that pays more at the moment."

You can open as many ISAs of the same type as you like

But you couldn't save into more than one ISA of the same type. Under the new rules, you can pay into multiple versions of the same type of ISA, up to your annual ISA allowance of £20,000 in each tax year.

Can I pay into two cash ISAs in the same tax year? ›

You can even pay into multiple Cash, Stocks and shares or Innovative Finance ISAs in the same tax year, if you stay within the overall ISA allowance. There's still restrictions on multiple Lifetime ISAs or Junior ISAs.

He said this would “provide them with a potential ISA contribution of £29,000 in total” before adding it would be “the biggest allowance anyone at any age receives”. However, Mr Khalaf noted: “This loophole is being closed from April 5 this year when the minimum age to open a Cash ISA will be raised from 16 to 18.”

You can open an ISA or ISAs each tax year, so you can have multiple accounts with different providers. ISAs from previous years remain open and active provided you stick within the rules outlined below. If you have questions about the tax rules for ISAs, you can call the ISA helpline.

You cannot open 2 cash ISA in the same tax year. You can open 1 and transfer the funds from another into the new one as long as you havent paid any funds into the existing one.

In the 2024/2025 tax year, the allowance is £20,000.

You can split the ISA allowance across any combination of different ISAs but it's your responsibility to ensure you stay within the £20,000 limit.

It provides you with a personal ISA allowance, which offers tax-free returns on savings or investments up to a certain amount. There's no limit to how many ISAs you can have at any one time. There are, however, restrictions on contributing to some ISAs of the same type in a single tax year.

Putting money into an ISA

Every tax year you can save up to £20,000 in one account or split the allowance across multiple accounts. The tax year runs from 6 April to 5 April. You can only pay into one Lifetime ISA in a tax year. The maximum you can pay in is £4,000.

You can transfer some or all savings from the current tax year's ISA or previous years. There's no limit on the frequency of transfers.