How many ISAs can I have?

At a glance

• While there’s no limit on the total number of cash ISAs you can hold, bear in mind some accounts and providers have their own restrictions in place
• In fact, it may be worth considering opening more than one ISA if you have multiple goals you’re looking to save towards simultaneously
• But, remember it’s your responsibility to meet the conditions of each account and to make sure you don’t exceed your annual ISA allowance.

Individual Savings Accounts (ISAs) can be a great way to shelter your hard-earned cash from tax, so it’s understandable that you might want to open more than one of these accounts.

Whether you already have an ISA and are looking to open another, want to pay into both a cash ISA and a stock and shares ISA, or you’d like to hold multiple of the same type of ISA, we explain the rules below:

The basics: How many ISAs can you have in a tax-year?

There are no limits on the total number of ISAs you can open in a tax-year (from 6 April to 5 April the following year), so long as you don’t exceed the £20,000 annual allowance.

Can you have more than one ISA? The rules explained

Some may remember that before April 2024 you could only subscribe to (pay into) one of each of the four main types of ISA per year (one Cash ISA, Stocks and Shares ISA, Lifetime ISA and Innovative Finance ISA).

This rule was amended in the 2023 Autumn Budget so that it’s now possible to open and pay into as many cash ISAs, stocks and shares ISAs and Innovative Finance ISAs (IFISAs) as you like.

That being said, you may find some providers still impose a limit on the number of ISAs you can open with them each year – so it’s always best to check directly with a bank or building society before applying.

Quick overview: What are the different types of ISAs?

There are four main types of ISAs that each suit different needs, circumstances and savings goals. They include:

• Cash ISAs: Cash ISAs pay tax-free interest on the money you deposit and are perhaps the most similar to traditional savings accounts. They come in different varieties, such as easy access cash ISAs, fixed rate cash ISAs, notice cash ISAs and regular savings cash ISAs.

• Stocks and Shares ISAs: Stocks and shares ISAs offer a tax-efficient way of investing in the stock market. Unlike cash ISAs, any returns you receive will be based on the performance of your investments (meaning your capital is at risk).

• Lifetime ISAs (LISAs): LISAs are specifically designed to help those saving a deposit for their first home or putting money away for retirement. Available to those aged 18 to 39, the Government applies a 25% bonus to money deposited in these accounts. However, bear in mind you can only add up to £4,000 to a LISA each tax-year and a 25% charge applies when withdrawing cash not for the intended purpose.

• Innovative Finance ISAs (IFISAs): IFISAs facilitate peer-to-peer lending but it should be noted that the Financial Conduct Authority (FCA) considers investments held in this type of account to pose a high risk and they may not be covered by the Financial Services Compensation Scheme (FSCS).

Can I transfer from one type of ISA to another?

Although there are no hard-and-fast rules preventing you from transferring between different types of ISAs, it’s ultimately up to a provider which accounts they accept transfers from.

While all banks and building societies must allow ISAs to be transferred out, they are under no obligation to accept transfers in. Before applying, it’s therefore best to check which type of ISA (if any) your prospective provider accepts transfers from. You can find this information by selecting ‘view further details’ next to a listing on our ISA charts.

Importantly, transferring an ISA doesn’t count as opening a new account, nor does it affect your annual ISA allowance.

For more information, read our guide on how to transfer an ISA.

How to manage multiple ISAs: Should you open more than one?

Opening more than one ISA could be a good idea if you’re saving towards multiple goals as some accounts may be better suited than others to meeting certain objectives. For instance, you could:

• Build an emergency fund in an easy access ISA while saving towards a longer-term goal with a fixed rate cash ISA
• Invest using a Stocks and Shares ISA while also putting money aside in a less risky option such as a Cash ISA
• Add a LISA to your portfolio for the express purpose of saving a deposit for a first home or a nest-egg for retirement.

However, it’s important to keep track of how much you’re depositing in each account, as it’s your responsibility to ensure you don’t exceed your ISA allowance.

How to maximise your ISA allowance each tax-year

If you want to maximise your ISA allowance, it might help to open or pay into an ISA as soon as possible once a new tax-year begins – as this will give you longer to get the full, £20,000 deposited.

Those looking to make the most of their ISA allowance should also check they’re receiving competitive returns on their cash ISAs and consider switching if not. Our charts are regularly updated throughout the day so you can easily find the best ISA rates currently available.