How Many ISAs Can You Have? The Rules Explained

Many savers assume you're only allowed one ISA, or one of each type — but the rules are more generous than that, especially since a big change in April 2024.

There's no limit on how many ISAs you can hold in total. You can pay into as many as you like in a single tax year, and since April 2024 you can even open more than one of the same type. The only hard limit is your overall £20,000 allowance, which is shared across all the ISAs you contribute to in the year.

In this insight we explain the £20,000 allowance, the four ISA types, what changed in April 2024, and the handful of rules you still need to keep in mind.

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Key Takeaways

• There's no cap on how many ISAs you can own — the limit is on the money, not the number of accounts.
• You share one £20,000 allowance across every ISA you pay into during the tax year.
• Since April 2024 you can open and pay into more than one ISA of the same type in the same year.
• The allowance resets on 6 April each year and can't be carried forward, so unused allowance is lost.

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The One Rule That Matters: £20,000

The number of ISAs you hold is almost beside the point — what really matters is the £20,000 annual allowance. This is the total you can pay into all your ISAs combined in a single tax year.

You could split that £20,000 across several accounts however you like: £10,000 into a cash ISA and £10,000 into a stocks and shares ISA, for example, or spread across three or four different providers. As long as your total new contributions stay within £20,000, you're within the rules. Our guide to your ISA allowance covers this in more depth.

The allowance runs with the tax year, resetting on 6 April. You can't carry unused allowance into the next year, so anything you don't use by 5 April is simply gone.

The Four Types of ISA

There are four main types of adult ISA, and you can hold and pay into any combination of them:

• Cash ISA — a tax-free savings account. See cash ISA vs stocks and shares ISA.
• Stocks and shares ISA — a tax-free investment account. Read our stocks and shares ISA guide.
• Lifetime ISA — for a first home or retirement, with a 25% bonus. See lifetime ISA explained.
• Innovative finance ISA — holds peer-to-peer loans and similar.

The Lifetime ISA has its own quirk: you can pay in a maximum of £4,000 a year, and that counts towards your overall £20,000. There's also the Junior ISA for under-18s, which has a separate £9,000 allowance — our junior ISA explained guide covers it.

What Changed in April 2024

This is the big update many people miss. Before April 2024, you could only pay new money into one ISA of each type per tax year. If you'd paid into one cash ISA, you couldn't open and fund a second cash ISA in the same year.

Since 6 April 2024, that restriction has gone. You can now open and pay into multiple ISAs of the same type in a single tax year — several cash ISAs, or several stocks and shares ISAs — as long as your combined contributions stay within the £20,000 limit.

Why does this matter?

It gives you far more flexibility. You could, for example, open a new cash ISA to grab a better rate partway through the year without having to transfer your existing one. Previously that wasn't allowed; now it is. The Lifetime ISA is the main exception — you can still only pay into one LISA per year.

The Rules You Still Need to Follow

The change made ISAs simpler, but a few rules remain:

• Stay within £20,000 total. Contributions across all your ISAs mustn't exceed the allowance.
• Only one Lifetime ISA per year can receive new money, up to the £4,000 sub-limit.
• Use transfers, not withdrawals, to move existing ISA money between providers, so you keep the tax-free status.
• You must be a UK resident and meet the age rules for each ISA type.

If you accidentally pay in over the limit, don't try to fix it yourself — HMRC usually spots it and will contact you about the excess.

Should You Have More Than One?

Just because you can hold several ISAs doesn't mean you always should. Spreading money across accounts can help you chase better rates or separate goals — an emergency cash ISA here, a long-term investment ISA there. But too many accounts can become hard to track.

A common, sensible approach is a cash ISA for short-term money and a stocks and shares ISA for the long term, perhaps topped up with a Lifetime ISA if you're saving for a first home. Our first-time buyer hub explains how a LISA fits in.

Frequently asked questions

Can I pay into two cash ISAs in the same year?

Yes, since April 2024 you can. You can open and pay into more than one cash ISA in the same tax year, as long as your total ISA contributions across all accounts stay within the £20,000 allowance.

Do old ISAs from previous years count towards my allowance?

No. Only new money you pay in during the current tax year counts towards the £20,000 allowance. Money saved in previous years, plus any growth, sits outside the current year's limit entirely.

Can my spouse and I each have our own ISAs?

Yes. The £20,000 allowance is per person, so a couple can save up to £40,000 between them across their own ISAs each tax year. ISAs can't be held jointly — each is in one individual's name.

What happens if I go over the £20,000 limit?

HMRC will usually contact you and may reverse the excess contributions. It's best not to fix it yourself. To avoid the problem, keep a running total of what you've paid in across all your ISAs during the year.

General information only, not financial advice. ISA and savings rules can change — check gov.uk before acting.