Since a rule change, you’ve had much more flexibility – in idea.

ISA restrictions had been loosened in 2024, making it simpler to combine and match your tax-free accounts. Right here’s what you might want to know.

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What number of new ISAs can I pay into in a yr?

The previous guidelines

Prior to six April 2024, the foundations had been you possibly can solely pay new deposits into certainly one of every sort of ISA annually. These ISAs are: Money, Shares & Shares, Revolutionary Finance and Lifetime ISA. Right here’s more on each ISA.

However that’s modified and now you can pay into greater than one of many identical sort in the identical day, week, month or yr for all however the Lifetime ISA and the Junior ISA (we’ll come again to those).

So when you now wish to add money to a mixture of Money ISAs, maybe some in an quick access and a few in a few fastened charge accounts, that’s completely high quality.

And if you wish to use completely different funding platforms to your Shares & Shares ISAs that’s additionally all okay. Perhaps you’ve an current portfolio you wish to preserve including to, whereas attempting out a unique platform for more cash.

Can I’ve a couple of ISA with the identical supplier?

Maintaining your money with the identical financial institution or constructing society actually makes it simpler to handle. Nevertheless, it’s as much as every supplier whether or not they’ll truly allow you to open up a couple of new ISA with them annually.

In actuality, only a few have modified their processes to permit this, successfully limiting you to certainly one of every ISA sort with them every tax yr. Notable exceptions embrace Zopa and Nationwide, the place you possibly can add completely different ISA accounts.

However this lack of implementation elsewhere doesn’t imply you are able to do it elsewhere. You’ll as an alternative have to buy round for additional accounts, which isn’t a nasty thought anyway. Or you possibly can search for a portfolio ISA the place a supplier enables you to open a single ISA, however inside that put your cash in several merchandise (although it might be these disappear for brand new accounts as they’re fairly redundant now).

In relation to Stocks & Shares ISAs, the story is completely different with extra suppliers implementing the brand new guidelines.

Can I put £20,000 in every ISA?

The ISA allowance, which resets each April, is a complete of £20,000. This covers all new ISA contributions collectively. This implies when you add cash to eight completely different ISAs it’s essential to ensure you don’t put greater than £20,000 in mixed.

There are some exceptions. Inside that £20,000 is a sub allowance for the Lifetime ISA. This ISA has a most restrict of £4,000 that may be added annually. So something you add to your LISA will cut back the remaining allowance for all the opposite ISAs you wish to contribute to in that yr. For instance, when you’ve added £2,000 to your LISA, that depart a most of £18,000 on some other Money, Shares & Shares or Revolutionary Finance ISAs that yr.

Then there’s the Junior ISA which has a separate £9,000 allowance annually. Right here’s more on the 2025/26 ISA allowances.

After all, this might all change, with the Treasury on the lookout for methods to encourage savers to speculate as an alternative. Rumours recommend the Cash ISA allowance could be reduced, although there’s been an enormous backlash towards the thought.

Can I’ve each new and previous ISAs?

Sure! When you open an ISA you possibly can preserve it yr after yr. And every new monetary yr when the annual £20,000 allowance begins once more, you’ve at all times been in a position to open up a brand new one when you wished. So when you did that yearly, you’ll presumably have already got fairly a number of.

You don’t even need to open new ISAs to your new contributions as you possibly can add more money to current accounts (so long as that particular account does permit this). Although ensure you’re not dropping out relating to rates of interest and funding charges when you do that.

Ought to I’ve a couple of ISA?

It’s positively price contemplating. For a begin, relating to new contributions, the brand new guidelines additionally provide the flexibility to have each quick access and stuck Money ISAs, so you possibly can make the most of locked in charges whereas additionally having some simply accessible cash.

Additionally, do not forget that your cash is barely protected in a single monetary establishment by the Financial Services Compensation Scheme up to £85,000. When you’re prone to go over this then it’s higher to separate your cash throughout completely different suppliers.

Nevertheless, when you simply need a single model of a number of sort of ISA, then there’s no hurt doing so. Simply bear in mind charges do change on a regular basis, particularly fastened Money ISAs as soon as they mature (i.e. when the fastened time period ends after say 12 months). Some main straightforward and restricted entry Money ISAs additionally include bonuses within the first yr, that means the speed can drop quite a bit. And new platforms can launch with decrease charges or entry to completely different fund.

So it is likely to be that any older ISAs aren’t the perfect accounts to your current and new cash. Which means it’s price on the lookout for better paying Cash ISAs or decrease charge Shares and Shares ISAs – after which transferring your money across.

Abstract: can I’ve a couple of ISA?

What number of Money ISAs can I’ve?

You’re in a position to have and pay into as many Money ISAs as you need

What number of Shares & Shares ISAs can I’ve?

There’s no restrict to what number of Shares & Shares ISAs you will have.

What number of Revolutionary Finance ISAs can I’ve?

There aren’t truly many Revolutionary Finance ISAs on the market, however when you actually wish to use them you possibly can contribute to a number of ones in the identical yr.

What number of Lifetime ISAs can I’ve?

You may solely pay new cash into one Lifetime ISA (or LISA) every monetary yr. That features whether or not you need a Shares & Shares LISA and a Money ISA – it’s sadly one or the opposite.

However you possibly can open up a brand new one every monetary yr if you wish to change supplier or switch over current ones.

The LISA is barely out there to below 40s, although you possibly can preserve including cash till you’re 50. In idea you’re in a position to open new ones annually after 40, although in observe not all suppliers allow you to do that.

Right here’s more on how Lifetime ISAs work.

What number of Junior ISAs can I’ve?

As with the LISA, you possibly can solely add new cash to a single Junior ISA every monetary yr. And once more meaning you might want to select annually in order for you that to be a Money or Shares & Shares model.

But as with all different ISA sorts you possibly can open a brand new one every April when you do wish to combine issues up, and contribute to that as an alternative.