How many ISAs can I have? Your questions answered.
ISAs are a popular way to save, especially due to their tax advantages. To get the most out of them, it’s important to understand the rules – including how many you can have.
As investment values can go down as well as up, you may not get back all the money you invest. If you're unsure about investing, please speak to an authorised financial adviser. Tax treatment depends on your individual circumstances and may be subject to change in the future.
What you'll learn in this guide...
- How many ISAs you can have and the total contribution limits
The differences between Cash ISAs, Stocks and Shares ISAs, Lifetime ISAs, and Junior ISAs
What happens to your ISAs from previous tax years
The rules around transferring ISAs
As of 6 April 2024, the ISA rules have changed. You can now open and contribute to multiple ISAs, as long as your total annual contributions don’t exceed the £20,000 ISA allowance.
This means you can contribute up to £20,000 in each tax year in a single ISA or split the amount between multiple ISAs. For example, you can open more than one Stocks and Shares ISA and contribute to both, but the total contributions across all accounts cannot exceed £20,000 in the same tax year.
Important: Lifetime ISAs and Junior ISAs follow different rules. You can contribute to only one of each type per tax year.
Types of ISAs
There are five main types of ISAs that you can hold in a tax year:
Cash ISAsare like regular cash-saving accounts, but any interest you earn is tax-free.
Stocks and Shares ISAs allow you to invest in the stock market. Any gains on your investments and dividends are tax-free.
Lifetime ISAs (LISAs) are for saving towards buying your first home or for retirement. The government adds a 25% bonus to your contributions, up to a maximum of £1,000 a year. You must be aged between 18 and 39 to open a LISA and can only pay into one until age 50. Unless you use the money to buy your first home, which can cost no more than £450,000, you must wait until you’re age 60 to access it. If you access it beforehand, a 25% penalty of your LISA’s total value will apply.
Innovative finance ISAs (IFISAs) are a type of ISA that allows you to invest your annual ISA allowance in peer-to-peer (P2P) lending. Investors (IFISA holders) are matched up with borrowers – usually businesses, individuals or property developers. Your money is then loaned out, and in return, you earn interest as the borrowers repay. Compared to Cash ISAs and other cash savings accounts, IFISAs have a higher potential for return but come with increased risk. Returns are not guaranteed, and there's a chance you may lose some or all of your capital.
Junior ISAs(JISAs) are savings accounts that a parent or guardian can set up for under 18s. Once the account is open, anyone can contribute to it on the child’s behalf. The child can access the money once they turn 18, when the JISA automatically converts into a regular Cash ISA or Stocks and Shares ISA. You can hold a cash JISA and a stocks and shares JISA simultaneously, as long as total contributions don’t exceed the £9,000 annual allowance. However, you can only have one of each type at any time.
ISA allowances
You can contribute up to £20,000 each tax year across your ISAs. The ISA allowance has remained at the £20,000 limit since 2016/17.
Lifetime ISAs and Junior ISAs have separate rules. You can only contribute a maximum of £4,000 per year to a LISA and £9,000 per year to a JISA.
You can split your £20,000 allowance across different ISA types; for example, you could contribute £10,000 to a Stocks and Shares ISA, £4,000 to a Lifetime ISA and £6,000 to a Cash ISA.
Junior ISA
Type of ISA | Annual Allowance |
Stocks and Shares ISA | £20,000 |
Cash ISA | £20,000 |
Lifetime ISA | £4,000 |
Innovative Finance ISA | £20,000 |
Junior ISA | £9,000 |
Can you open multiple ISAs?
It’s possible to open multiple ISAs, and you may have done so over the years with different providers. Previously, you could only open one of each type of ISA per tax year. But as of 2024, you can open multiple ISAs of the same type within the same tax year – just remember, your total contributions across all ISAs can’t exceed the £20,000 annual allowance.
If you have a Cash ISA from a previous tax year, you’re not obligated to continue contributing to it. You can still open multiple Cash ISAs in the same tax year, but you can only contribute to one per provider. In other words, you can contribute to two cash ISAs in one tax year, but only as long as they're with different providers.
There's no limit to how many Stocks and Shares ISAs you can open and contribute to in a tax year. And unlike Cash ISAs, you can contribute to more than one, even if the accounts are with different providers.
You can also open a LISA alongside a Cash ISA and Stocks and Shares ISA. Remember, the annual contribution limit for LISAs is £4,000, which counts towards your overall £20,000 ISA allowance. You can open more than one LISA, but you must only make contributions to one per tax year.
Why you might want to have more than one ISA
Choosing to have more than one ISA could help you meet different financial goals. For example, if you’re saving specifically for a first home, then you may choose to open a LISA.
A cash ISA can be a good option for short-term goals like saving for home improvements or your next holiday, as it offers a low-risk, interest-earning way to grow your savings.
Stocks and Shares ISAs are suited to long-term goals – essentially anything that’s five years or more away. You invest in the stock market, meaning there’s no guarantee you’ll get back what you put in, but you can generate potentially higher returns over time.
Other circumstances may also lead you to have more than one ISA, such as inheriting one from someone else. The ISA inheritance rules allow a spouse or civil partner to inherit the tax-free value of the account automatically. If you inherit an ISA and aren't the spouse or civil partner of the deceased, then you may have to pay inheritance tax. Junior ISAs also have their own rules and cannot be inherited.
ISAs from previous tax years
Each tax year, you can open and contribute to a new ISA, which can result in you having several ISAs from previous years. These ISAs remain open and continue to hold your savings or investments, but you can't use the previous year’s allowance to add more money to them. In other words, the annual allowance does not roll over to the next tax year.
If you have ISAs from previous tax years, you can either keep them with your current provider or transfer them to a new one. To do this, you’ll need to go through your new provider and use their ISA transfer service, letting them know what you wish to transfer.
Transfers do not affect your current year’s allowance. For example, let’s say you have an ISA from a previous tax year with a balance of £10,000 and transfer it, your £20,000 annual allowance for the current tax year remains.
If you’re happy with your current provider – perhaps because of competitive returns or investment options – you can simply continue contributing to your existing ISA.
Can you transfer from one ISA to another?
You can transfer an ISA to another ISA of the same type, for example, a Stocks and Shares ISA to another Stocks and Shares ISA. Transfers between different types of ISAs are also possible.
ISA transfers must be handled through your new provider. Do not withdraw and deposit the money yourself, as this will affect your ISA allowance and may cause you to lose your tax benefits.
Before you begin the process, check with your provider to confirm the transfer can be facilitated and whether any fees apply.
You can’t transfer your ISA to another person; any transfers between accounts must be made between the same account holder.Â
You can request full or partial transfers for Stock and Shares ISAs and Cash ISAs if both providers permit them. For Lifetime ISA transfers, you must transfer the full balance of any current year contributions; though partial transfers of previous years' contributions are permitted. Junior ISAs must be transferred fully; partial transfers are not permitted.
Important information:Â Investment value can go up or down and you could get back less than you invest. If you're in any doubt about the suitability of a Stocks & Shares ISA, you should seek independent financial advice. The tax treatment of this product depends on your individual circumstances and may change in future. If you are uncertain about the tax treatment of the product you should contact HMRC or seek independent tax advice.
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