How many ISAs can you have at the same time?

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What are the different types of ISAs?

There are a few different types of ISAs you can choose from but three types are affected by the new rules. These are:

• Cash ISA – this works in the same way as a normal savings account where you’re paid interest according to the amount of money you hold, except everything is in an ISA wrapper so you don’t pay tax on any interest received.
• Stocks and shares ISA – the money in these accounts are intended for investing; as it’s in an ISA wrapper, you don’t have to pay any capital gains tax or dividend tax.
• Innovative finance ISA – a lesser known category, this is a portfolio that includes peer-to-peer lending; again, you won’t pay tax on any earnings.

In addition to the main ISAs, there’s also the Lifetime ISA (LISA).

There are a few things that make the LISA different from a regular ISA.

For one, you have to pay a penalty to withdraw the money unless you’re using it to buy your first home, which must be worth less than £450,000, or you’re over 60 or terminally ill.

You also get a government top up of 25% on whatever you put in, which can make it a good pension alternative.

For those under 18, there’s the Junior ISA, with an annual allowance of £9,000.

Annual ISA allowance

You can only open an ISA if you’re over 18 and are a UK resident, or you’re working abroad for the government (eg you’re a diplomat or in the army).

For everyone eligible, the annual ISA allowance is £20,000, which refreshes at the beginning of each tax year on 6 April.

This money can be distributed across any combination of the three main types of ISAs – so cash ISA, stocks and shares ISA or innovative finance ISA.

However, you can only pay £4,000 a year into your LISA.

And if you contribute the full amount, you can only pay up to £16,000 into your main ISA in that tax year.

How many ISAs can you have at the same time?

The new ISA rules that came into effect on 6 April 2024 only apply to the main ISAs, and not LISA or the Junior ISA.

You still get the £20,000 annual allowance as before.

However, for the first time you can split this sum across multiple ISAs instead of having to choose just one.

In effect, you can open an unlimited number of normal ISAs in the same year.

For example, you can hold a cash and stocks and shares ISA in the same year.

Or you can choose to have two different cash ISAs with different providers.

However you do it, your contributions across all of the ISAs cannot exceed £20,000, or £16,000 if you’re also paying the full sum into a LISA.

As for the LISA, the rules have not changed.

It means you can only hold one LISA at a time and have to choose between the cash LISA or stocks and shares LISA

Benefits of the new ISA rules

Under the old rules, you could only contribute to one ISA each year, which meant you had to choose between cash, innovative finance or stocks and shares.

If you’re nervous about investing, you might not feel all that confident about putting all of your money into a stocks and shares ISA.

And while interest rates for cash ISAs are higher than they were during the pandemic, they’re often not as competitive as traditional savings accounts.

The new rules mean you can split your money across multiple products and diversify your portfolio in a way that suits you.

I personally think it could also encourage more competition between ISA providers since you don’t have to put all your money into one place for the first time.

Plus, it gives you more opportunities to take advantage of any incentives that ISA providers are offering, such as a sign up bonus.

Things to be aware of

As well as your £20,000 annual allowance, you should remember that the Financial Services Compensation Scheme (FSCS) has an £85,000 limit on the protection they offer for money saved with each provider.

If you think your ISAs – plus any other money held with the provider – might go over this limit, it might be worth spreading your ISA across multiple providers to spread the risk.

Remember that if you want to move your money from one ISA to another, don’t withdraw it. Instead, request a transfer.

If you withdraw the money and then save it again, you’ll eat into your ISA allowance.

Also bear in mind that not all providers allow transfers in so it’s worth checking the terms and conditions before you open an ISA.

This post was originally published in April 2024. It was updated in February 2025.

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