How many ISAs can you have?

Can you have more than one ISA?

As introduced for the 2024/25 tax year, you are able to open and contribute to more than one of each type of ISA in any tax year (excluding Lifetime ISAs and Junior ISAs). You may also make further contributions to your ISAs from previous tax years out of your current year's allowance. Your prior years' ISAs will no longer be considered 'lapsed' and do not require a new ISA declaration for the current tax year if you didn't contribute in the previous tax year. However, please check with your ISA provider, as some providers may be taking a different approach to the rules regarding holding multiple ISAs.

For investors

Stocks and Shares ISAs may be ideal for those who want to put money away for the longer term – at least three years – by investing tax efficiently in financial markets. If your investments held within an ISA grow in value, any gains made will not be subject to capital gains tax. Investment income, such as dividends and interest received within an ISA, is also tax-exempt. However, as with all investing, there is a risk of capital loss.

The relatively new ability to open and contribute to multiple Stocks & Shares ISAs provides investors with flexibility. For example, an investor could choose to invest across different types of strategies in their various accounts. Say an investor decided to have two Stocks & Shares ISAs, they may choose to hold a risk-managed portfolio as a core holding in one, and then have a separate selection of individual stocks and shares held in a self-directed account with a brokerage provider.

Note that returns aren't guaranteed, and you may get back less than you invest.

For cash savers

A cash ISA, although not a product we offer at Nutmeg, may be suitable for those who want certainty of return through a stated interest rate, often with the possibility of instant access to your cash. Interest rates can be subject to change, so you should check the terms and conditions of any account. With the ability to open more than one account, savers have the flexibility to contribute to, for example, both an instant access cash ISA and a fixed-term cash ISA, which is likely to offer a higher rate.

What are the different types of ISA?

As well as cash and Stocks and Shares ISAs, there are also Lifetime ISAs (both cash or stocks and shares types), and innovative finance ISAs. For saving or investing for children, there are also cash and stocks and shares Junior ISAs (JISA). 

The Lifetime ISA (LISA) could be a good way to save or invest for either your first home or towards retirement. Those eligible (the first contribution must be made between the ages of 18 and 39) can contribute up to £4,000 per tax year and the government will give you a 25% bonus – that's up to £1,000 every year of contribution up until age 50. However, conditions and exclusions apply, which we outline here.

Innovative finance ISAs (which are not offered by Nutmeg) are generally considered as more suitable for more experienced investors as they invest in peer-to-peer loans and are considered higher risk.

A JISA can be set up by a parent or guardian for children under the age of 18, but please note that to open a Nutmeg JISA for your child they must be under 16. The parent or guardian, or friends and family, can contribute to the account but only the child can access the money – and only after they turn 18. Find out more around the JISA rules here. 

How much can you invest in an ISA each year?

You are allowed to put £20,000 per tax year into ISAs in your name under current rules. This allowance may change in the future.

If you still have some of your allowance left for the current tax year, you have the option to open a new account. You will need to have enough of your allowance left to contribute the minimum starting contribution, which at Nutmeg is £500 for an ISA, and £100 for a LISA and JISA.

With a new tax year starting on 6 April, you will have a fresh £20,000 ISA allowance. The start of a new tax year can be a good time to review your finances, and you have the option to open new accounts if you want to, perhaps with a provider that offers different benefits. For example, they may offer a higher interest rate for cash ISAs, or a wider selection of investments for Stocks and Shares ISAs.

Note that JISAs have a separate allowance of £9,000 per tax year that does not count towards the £20,000 annual allowance for other ISA types. These are different to other types of ISA as you can only open one cash JISA and one Stocks and Shares JISA per child throughout childhood. You can, however, transfer a JISA from one provider to another.

Keep track of your contributions

While people now have more flexibility when it comes to their ISA strategy, it also means account holders will need to keep close track of how much they're contributing to their different ISAs.

If you choose to contribute to multiple ISAs in a tax year, make sure you don't exceed the £20,000 annual allowance. Please note that for a LISA, the contribution limit per tax year is £4,000, which is part of the overall £20,000 ISA contribution allowance. For example, if your first decision in the tax year was to max-out your LISA allowance by contributing £4,000, you would then have £16,000 remaining to contribute to any other cash or Stocks and Shares ISAs you hold.

For JISAs, the limit is £9,000 per child. For the adult contributing to the JISA, this does not count towards their £20,000 allowance.

Transferring ISAs

Transferring from one provider to another

ISA account holders can transfer all or a portion of their savings or investments from one provider to another at any point. The ability to do partial current year transfers was new for the 2024/25 tax year and is subject to the ISA provider's terms and conditions.

It can be to a different type of ISA or the same type, however this will be dependent upon the new provider accepting transfers and you taking the correct steps. The investment can have been made this tax year or in previous tax years.

Before you start any transfer, you should check whether your current or new providers will charge a fee for transferring or whether you may lose any benefits.

The transfer itself is handled by the provider of the ISA that you are transferring into and can take several weeks to complete. They should outline the steps for you, starting by providing you with an ISA transfer form.

It’s important not to withdraw and transfer your money yourself as you will lose the tax advantages of the ISA.

Transferring ISAs is common. For cash ISAs, some people find that they can get better rates by transferring. For example, the initial headline interest rate that you opened the account with may fall in subsequent tax years.

Transferring a cash ISA into a Stocks and Shares ISA

You can transfer a cash ISA into a Stocks and Shares ISA, and vice versa. We offer the ability to transfer to Nutmeg, with contributions going into our risk-rated managed global investment portfolios. Discover how to transfer your ISA to Nutmeg.

You may, for example, decide that you wish to transfer money from a low-paying interest rate cash ISA into a Stocks and Shares ISA, which could potentially, over the course of several years, outpace inflation.

However, please remember that investing can be volatile, capital is at risk, and you may get back less than you invest. You should always have easily accessible emergency savings in place alongside your investments.

Alternatively, your Stocks and Shares ISA may have grown, and you might now decide to reallocate some of your funds to a cash ISA to manage your risk. You have the flexibility to do that. This could be, for instance, if you are now close to retirement and wish to use cash savings alongside your pension, without the risk of potential future investment losses. 

Nutmeg's experts are on hand with free financial guidance should you need to speak to someone about your options, including ISA transfers. Book a free call today.

Some things you can’t do

The new ISA rules that came in for the 2024/25 tax year have given ISA holders a great deal more flexibility than they had before. However, there are still a few points to be aware of.

You should always check with your provider for any additional terms and conditions that could affect you. The below is not exhaustive, and you may want to look at our FAQ pages for more information.

JISAs: your child can’t have more than one of the same type of JISA. You can open a cash JISA and a Stocks & Shares JISA for your child, and you can transfer each account from provider to provider. However, your child can’t have, for example, a Stocks & Shares JISA with Nutmeg and a Stocks & Shares JISA with another provider. The same applies to cash JISAs.

LISAs: you can only pay into one LISA each tax year, and to open one you must be 18 or over but under 40. You can transfer from one provider to another as long as that provider allows, but you can only contribute to one LISA per tax year.

Risk warning

As with all investing, your capital is at risk. The value of your portfolio with Nutmeg can go down as well as up and you may get back less than you invest. Tax rules vary by individual status and may change.

With Lifetime ISAs, if you need to withdraw the money before you’re 60, and it’s not for a qualifying purchase of a first home, you may pay a 25% government withdrawal charge. If you choose to opt out of your workplace pension to pay into a Lifetime ISA, you may lose the benefits of the employer-matched contributions. Your current and future entitlement to means-tested benefits may also be affected.

To open a Nutmeg JISA, the child must be under the age of 16 and funds cannot be withdrawn until the child turns 18.

Before you transfer any ISA, LISA or JISA check you won’t lose any benefits and that you know what charges you may incur.