How many ISAs can I have? New rules explained

It’s about to get much simpler to use an ISA as restrictions on how many ISAs you can pay into in a year are to be replaced. Andy explains what you need to know.
W A T C H N E X T
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#isa #savings #investing
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00:00 What were the old rules on multiple ISAs?
01:23 The big changes when it comes to ISAs
02:36 Multiple ISAs with the same provider
04:05 Can I put £20,000 in each ISA?
05:33 Can I have both new and old ISAs?
06:56 Should I have more than one ISA?
08:42 Don't keep your old ISAs on a lower rate
S U B S C R I B E / @becleverwithyourcash
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T W I T T E R - / beclevercash
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F A C E B O O K C O M M U N I T Y - / 2661970707423383
W E B S I T E - becleverwithyourcash.com
A B O U T A N D Y
Andy Webb is a money blogger and journalist. He runs the award-winning website Be Clever With Your Cash, hosts the Cash Chats podcast, presented Channel 5’s Shop Smart Save Money and writes every month for Reader's Digest. Andy also founded the community ukmoneybloggers.com.
DISCLAIMER
Content in these videos does not constitute regulated financial advice. Any offers mentioned were correct at the time of filming.

[@outsidethebox2037]

Just be careful with the FSCS protection...1 FSCS 'license' is issued to each bank....so do a little checking, for instance First Direct and HSBC are the same bank. If you have £85000 in a First Direct ISA and another £85000 in a HSBC ISA (of any type) you're only protected up to £85000 not the £170,000....🧐

[@Chris-iu7in]

Is there a list or easy place to see these?

[@Mallarkey]

A new problem to raise its head is Nationwide trying to buy VirginMoney...the same issue could crop up there too.

[@Chris-iu7in]

@@Mallarkey yea which i why I'd like to know, as i have money in both those, so will probably need to move out of one soon.

[@Mallarkey]

@Chris-iu7in It is a frustration if you have been careful to do your research and spread money around separate banking licenses only to be ambushed by a rogue CEOs desire to make a statement acquisition

[@andrewtang6318]

Tesco Bank and Barclay as well.

[@MegaBros64]

You're the first person that I've listened to that has explained this properly. Thanks 👌🏼

[@pams4401]

Thank you. I sort of got it but youve made it so much clearer on how it works

[@RealEconomics_]

Great video Andy, thanks.

[@mattnash3437]

Thanks for this, really helped me understand the new rules! 😁

[@norbertkorcyl3244]

Thank You for useful advice and not to long video ,

[@Norfolkpaul]

Nice job on your video 😊

[@kriskalpa]

thanks for the video.

[@_starhelix]

Love the content as much as the accent 🥰🇬🇧

[@michaelalker1311]

Hi Andy, do you know if Atom are going to start providing a cash Isa any time soon.

[@mary-2240]

Hiiii! Have you done any videos for mortgages to non contractors?❤

[@benjijmason]

Hi Andy, One thing about ISAs confuses me. I am unable to work due to a disability. I receive Universal Credit and the limited capability for work element. Will I still benefit from an ISA, or do I not have a tax allowance because I can't work? Are you able to answer at all? Thanks!

[@godislove3546]

Can you have help to buy isa and a cash isa? 😊

[@bimgalin6239]

Very informative video, I have a question please. If I withdraw my £20k before April 6, can I open again a new one after April 6 or I’m gonna loose the tax benefits 😊

[@comfortzone5618]

Anyone with the Zopa cash ISA?

[@cognachobo2320]

If I pay the monthly interest from an isa into a current account every month does it become taxable?

[@federicoricciardi1133]

Something I did not get from the video (sorry if it's a dumb question, new rules are somehow confusing to me): If I open 2 ISAs this year (2024/2025), say one 15k cash and one 5k stocks and shares, can I move money between the two in a few months time (i.e. before end of fiscal year)? They'd be with the same provider, if that matters...

[@SJGsysadmin]

If you’ve got in to a position where one ISA value has grown beyond the protection limit of that institution, can you do a partial transfer, eg move only 50% of it?

[@samstewart8304]

Yes you can now transfer a portion if you so wish. Make sure the new provider is up for it before opening acc, as Andy was saying will maybe take providers time to change their systems to new rules. Also if it's fixed rate acc would probably have to be matured or lose interest.

[@NS-pt9rr]

I have S&S Isa with hl & want to transfer to Investengine or trading 212, I am sitting in the red on some but have double digit cash sitting waiting to be invested. With the new rules am I able to transfer the cash over to IE or Trading 212 from previous year and leave the shares in the red with hl until they're in the black ?

[@philipsloan6344]

Yes you can. In fact, even before these new rules, you could do this.

[@outsidethebox2037]

T212 all the way....your uninvested cash can make you 5.2% APY....the interest is paid daily, seven days a week...

[@silverfire01]

I currently have a variable cash isa from last year which i took out as interest rates were going up but i want to keep and put money in this year . However i also want to open a fixed rate cash isa as not sure where interest rates are going this year and put money in from another providor but am not sure if that is allowed as long as dont go over a total limit of £20000.00

[@me-myself-i787]

Don't put your money in a cash ISA. You'd benefit more from your stocks being tax-free rather than your cash because stocks give higher returns, and the £20000 annual limit applies to the combination of all your ISAs, so it's better to use that limit up on a stocks and shares ISA rather than a cash ISA.

[@silverfire01]

@@me-myself-i787 thanks for that. Yes I know but stocks and shares are a risk I don't want to take as I am not a risk taker .as you know stocks and shares can go up and down . I agree you can make a lot more money as long as everything goes ok.

[@Williamsimmonite]

My current isa matures at end of April does this mean I can’t open a new account until then ?

[@comfortzone5618]

You can open a new ISA the new financial year.

[@Williamsimmonite]

Can I open a new isa now to get interest rate but not put or arrange For transfer until 6 April ?

[@deltaechomusicnh555]

Yes.

[@outsidethebox2037]

Transfers don't count towards your yearly ISA allowance...so yes 🧐

[@antonymcneillis]

With the new rules, can you transfer cash held in a stocks and shares ISA, to a new Cash ISA?

[@outsidethebox2037]

Yes

[@antonymcneillis]

@@outsidethebox2037 🙏

[@tiptoemouse]

You've been able to do this since July 2014.

[@nataliesegal4797]

With new rules can you do an ISA transfer from bank to bank (within 2024/5 new money) if you find a better rate later in the year?

[@outsidethebox2037]

Ok, so if you open a new ISA of any type and start contributing to it, that is the only ISA of that type you can contribute to during the financial year.....Yes you could open another ISA of the same type and 'TRANSFER' cash from your previous ISA but you cannot contribute to it....Transfers aren't classed as contributions and don't count towards your ISA allowance....For example, let's say you put £15000 into a cash ISA...you find one with a better interest rate, open it and transfer your money into it....fine, but you can still only contribute a further £5000 max into the older one with the lower interest rate ....Hope that makes sense 🤓

[@UKGeezer]

Yes you can, even with the old rules you could do this, but you had to transfer all of it (for funds put in the new year). The new rules allow you to make partial transfers as well for funds put in the new year if you wanted to.

[@nataliesegal4797]

@@UKGeezer thank you. I think that's what I meant...partials, good to have clarity, thank you

[@dr.eyeball.3121]

Won't this mean the end of the bog standard saving account now, then for us, mere mortals? Why wouldn't you put all your savings in the isa wrapper if you got the option now.

[@duppa]

You can still only contribute a combined £20k to all ISAs over the tax year though

[@rjScubaSki]

ISAs you don’t want to take things in and out of very much as you lose any built up allowance above the amount left after withdrawal. Better to use easy access for scratch savings then move to isa later when you are sure you don’t need it short term. ISA is really a different bit of pension in disguise as a savings account …

[@138spoon]

Because ISA rates are generally lower than regular savers etc...still better to max out your PSA first.

[@outsidethebox2037]

It all depends on your ' risk aversion '... Cash ISA's tend to pay lower interest than Savings Accounts but your PSA is only £12,500 per year, so max that first. However a S&S ISA could increase your wealth more substantially, but as the saying goes 'Your Capital is at Risk and you could lose more than you invest'....it's all about your appetite for risk...🤓

[@chigbofaythe7422]

Hi Andy 🎉🎉 hope you are well

[@mrexpress8002]

Can you have fractional shares ? does hmrc allow it ?

[@OutThBlue5]

In a stocks and shares ISA, you won’t have to pay taxes on fractional shares. This will kick in the start of the next financial year.

[@UKGeezer]

Yes, but I think it only applies to fractional shares held in index funds and ETFs. If you own fractional shares in individual stocks then no, you'll be taxed by HRMC even if they're held in an ISA.

[@mrexpress8002]

@@UKGeezer i bought shares 2 weeks ago within as ISA using the trading 212 platform. i bought £1000 shares for 10.353637 . I contacted trading 212 and they said you don't have to worry but i am worried. trading212 is regulated by the FSCS. why would they sell shares that are fractional. also i assuming if if have to pay tax it would be on the 0.343637 part of the share.

[@cognachobo2320]

If I open a 5 year fixed cash isa on 6th April this year, can I add £20k to it every subsequent year on 6th April or can I only pay in once when I open it? Thanks.

[@fleece3867]

Why do you want to open a 5yr fixed ISA ?

[@comfortzone5618]

Yes you can

[@cognachobo2320]

@@comfortzone5618 thank you I appreciate your help

[@sfactory8253]

Question please. I opened my isa in August. Does that mean i can't open a new one until this August or can i put money in a new one from April? It was a fixed 2 year. I can't top it up anymore.

[@dr.eyeball.3121]

Yes, you can open a new isa after 5 April

[@sfactory8253]

Thank you.@@dr.eyeball.3121

[@rinakaur7245]

Can you open more than 1 Junior ISA stocks & shares in 24/25 too? Or just other ISAs?

[@outsidethebox2037]

You can open as many ISA's of any type you want.....BUT you can only contribute to one of each type in a financial year (April-April) and your ISA allowance is £20,000 max, which must be divided between all your ISA contributions, However the max allowance into a Junior ISA is £9,000/year but this does not affect YOUR personal of £20,000 as it ' technically ' belongs to your child, but to open a JISA you'll need to prove the under 18 child's existence, birth certificate etc..etc...🤓

[@outsidethebox2037]

P.S. It's worth mentioning that money in a JISA cannot be accessed until the child reaches 18 years old. 🤓

[@gouthamkumar9586]

@@outsidethebox2037 Can I have 2 stocks and Share ISA and contribute in both ISA in the same year? (with different provider)

[@RingstingIndustries]

​@@gouthamkumar9586 Yeah, I think the other post is unintentionally incorrect. The new ISA changes mean you can add new money to multiple ISAs of the types you can have more than one of (i.e. NOT JISA or LISA) just so long as you do not exceed the 20k limit in that tax year for all ISA type contributions.

[@AkubaCAB]

Silly question but just wanted to be sure, if you have a Help To Buy ISA, can you still open a Lifetime ISA? I know government gives a bonus to one or the other but im not clear as to whether that means you cant have both?

[@godislove3546]

You can have both as I have both too but you can only use one of them when buying a 1st house. I’m just curious if you can have Help to buy isa and cash isa at the same time 😅

[@AkubaCAB]

@@godislove3546 thank you

[@LittleKagsx]

@@godislove3546 I have both - HTB and cash ISA

[@nepsboys0075]

Can I open more than two Cash ISAs or Stocks and Shares ISAs with a total limit of £20,000 in all ISAs?

[@fbaallied]

Yes.

[@mikedennett3291]

Can I swap my low paying isa now into a higher paying isa for this tax year, then another one on the 6th

[@gouthamkumar9586]

Can i have 2 stocks and shares ISA? (With different providers)

[@adamxyz123]

Trying to find this out too

[@gouthamkumar9586]

@@adamxyz123 Thanks. Let us know.

[@outsidethebox2037]

Yes, you can open as many as you want...BUT....you can only make personal contributions to ONE S&S ISA in the financial year..... Unfortunately if you put £1.00 into more than one S&S ISA ....HMRC will hunt you down. So, as many different ISA's as you want....but only pay into ONE of each TYPE during the financial year, up to £20,000 spread across them all....( You're allowed an extra £5000 on top of that provided you put it into the new BRITISH ISA, but they're not available just yet)....hope that helps 🧐

[@adamxyz123]

@@outsidethebox2037 Thanks for this. I was under the impression based on the text that this would have applied to the old rules but not the new rules for Stocks and Shares ISA's but thanks for clarifying.

[@malacca1951]

And you say this is 'so much easier'?! I read about it, watched your video 3 times and studied the Government Gateway pages but still find it complex! To be sure I'm not breaking any rules, I have just one P2P ISA, get 6.5% and have topped it up each year for 5 years. I wish there were other Tax-Free Savings; I can only think of Premium Bonds and they aren't really savings.

[@deltaechomusicnh555]

What is a P2P ISA?

[@outsidethebox2037]

​@@deltaechomusicnh555 a P2P ISA otherwise known as an Innovative Finance ISA, is similar to every other ISA in the respect that you do not pay tax on the money you contribute to it...however it differs in several ways ..Your money is used to 'lend' to other businesses, usually 'start-up' businesses that are looking to raise capital. The interest rate you receive can be higher than a normal ISA, but your capital is at risk and if the businesses that the money is lent too collapse, you lose your money....if the business is a success and the 'loan' repayments are made your balance increases....Also worth noting that a IFISA is NOT protected under FSCS. Hope that helps.

[@concordep2504]

Typically, now I an disabled and on benefits and don’t have the money to invest in is as or anything the giver brings in rules where you can do all this!

[@clothcap]

Cash ISA's are a waste of time for most - use your ISA allowance for stocks & shares and get Real Returns

[@johnevans2044]

@clothcap The choice is all about risk versus long-term growth. If you're retired and on a relatively fixed income, but pay tax on it, then if you have cash that you want to save for a rainy day, a cash ISA is a good option - provided you can get an interest rate that is better than a non ISA savings account would be after tax is deducted. A stocks & shares ISA is more risky because its value can go up and down.This is not a problem if you're saving for a the long term (10 years or more) because overall such an ISA will indeed give better returns than a cash ISA. However, when you're retired and you might need the money in your savings at relatively short notice (e.g. to pay for a private medical care bill because the NHS can't treat you in a reasonable time frame), you need to be sure that your ISA hasn't dropped dramatically in value when you need it! Cash ISA's don't lose capital value, but stocks and shares ISAs can.

[@lawrenciagrtjobdonemygirlb619]

I currently have a stock and shares ISA from last year that i want to keep contributing to but wants to open an s&p 500 with an Isa to skip the tax on interest, is this flexible, if not what will be the advice on n opening the s&p 500 please whilst i keep the isa from foresters