How many ISAs can I have?

A shake-up of ISA rules has given savers and investors more flexibility with the tax wrapper. So, how many ISAs can you have, and can you open more than one ISA in a tax year?

Previously, ISA savers and investors could only put money into one cash ISA and one stocks and shares ISA each tax year.

But a rule change in April 2024 means you can now open more than one of the same type of ISA during a tax year, as first announced by former chancellor Jeremy Hunt in his Spring Budget last March.

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The changes, which kicked in during the 2024/25 tax year, mean savers who hold a cash ISA or stocks and shares ISA can subscribe to more than one of the same type within a given tax year – but there’s a catch.

The change is not mandatory and some savings providers have decided not to offer the reforms.

So, it’s essentially up to your ISA provider if they want to implement the new rule.

In the midst of other ISA changes that came in during the 2024/25 tax year, this one could prove beneficial for thousands of cash ISA holders, as it means just like a traditional savings account, savers can keep on top of grabbing competitive rates without the hassle of transferring their money.

And it means investors can shop around for the best investment platform to host their stocks and shares ISA.

We dive into how the new rule works, and which banks, building societies and stocks and shares ISA providers have welcomed the new ISA rule.

How many ISAs can I open in a year?

Before the 2024/25 tax year, ISA holders were only permitted to open or pay into one ISA of the same type within a given tax year.

If you wanted to switch over to another ISA of the same type, previously you would have had to check if your current provider would allow your funds to be transferred to the new provider – and not all ISA providers offer this.

Since 6 April 2024, it’s been possible to subscribe to more than one cash ISA or stocks and shares ISA in a tax year.

Plus, there's also been a change to ISA transfers. Before 6 April, if you wanted to transfer your funds to another ISA, it would have had to be the full amount. Since the 2024/25 tax year began, you can now partly transfer funds. But, you will also have to check that your provider offers this.

While your £20,000 tax-free ISA allowance remains the same, the new rule means you can spread it across various ISA providers and accounts of the same type within your limit.

Can I open two cash ISAs in one year?

Yes, you can now open two cash ISAs in the same tax year. You could open more accounts than that if you like, for example, four cash ISAs. You can also open two or more stocks and shares ISAs in any tax year.

However, note that the new rules do not extend to lifetime ISAs: you cannot pay into more than one lifetime ISA, as this is limited to one per tax year.

Also note that your ISA provider will need to allow these new rules on multiple cash ISAs or stocks and shares ISAs. Providers do not have to update their systems and permit customers to open more than one of each type of ISA each tax year.

Which banks and building societies allow customers to open more than one cash ISA in a tax year?  

As mentioned, it’s up to the ISA provider whether they want to take on the new ISA reforms and offer the rule change to their customers.

MoneyWeek asked a range of high-street banks and building societies whether they accept applications from ISA holders who already hold a cash ISA elsewhere, or with them.

So, of the ISA providers we asked, only TSB, Nationwide, Skipton and Yorkshire building societies are offering the ISA reform. It means between these four providers, you can open two or more cash ISAs.

For example, if you have a fixed-rate cash ISA with Nationwide, but months later you see TSB is offering a better rate, you can open a cash ISA with TSB without having to close or transfer the funds from your Nationwide account.

It's a shame that more than a year after the rule change came in, big banks like Barclays, HSBC, Lloyds, NatWest and Santander are still telling customers they can only open one cash ISA each year.

A few other ISA firms allow customers to hold multiple accounts, for example opening two cash ISAs in the same tax year. Savings and investment app Moneybox confirmed it has taken the new ISA rule on board. It says customers are able to open and deposit into more than one cash ISA in the same tax year.

Investment firm Hargreaves Lansdown launched a cash ISA platform last year, under its Active Savings platform.

It offers three types of cash ISAs – easy-access ISAs, fixed ISAs and limited-access ISAs – and under the new rules, it allows savers to hold more than one cash ISA per tax year.

Which investment firms allow customers to have more than one stocks and shares ISA?

The ISA change also applies to stocks and shares ISAs, but which investment platforms have welcomed the new ISA rule?

Hargreaves Lansdown (HL) told MoneyWeek: “In line with the changes to the ISA rules implemented from 6 April 2024, clients can open/contribute to a stocks and shares ISA with HL and an alternative provider in the same tax year.”

Investment firm Interactive Investor said under the new rules, you can open and contribute to stocks and shares ISAs with other providers in the same tax year too.

AJ Bell has also confirmed that it is allowing subscriptions to multiple ISAs.

A spokesperson from Fidelity told MoneyWeek: “In order to ensure clients continue to have the widest possible choice, Fidelity has removed the requirement that ISA account holders only contribute to a single stocks and shares ISA within a tax year.”

In fact, all the investment platforms we asked said they would allow ISA customers to open and/or pay into stocks and shares ISAs with rival platforms during the same tax year.

Brian Byrnes, head of personal finance at Moneybox, says allowing investors to have more than one stocks and shares ISA will give them more choice and freedom, adding that the rule change should encourage ISA holders to shop around and look at the providers' different features and costs.

Is now a good time to open an ISA? 

It is never too late to start saving or investing.

If you’re looking to open a stocks and shares ISA, research by HL shows that early bird investors are better off, although you can usually still make money over the long term whenever you begin.

It may also be a good time to open a cash ISA right now – you'll escape paying tax on any savings interest, plus if you fix for a year or two you won’t be affected by any further interest rate cuts by the Bank of England. It's predicted that the base rate could be reduced two more times this year.