How many ISAs can I have?

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There is no limit on the number of Individual Savings Accounts (ISAs) you can hold, but you can only invest in one ISA of the same type in the same tax year. This means you can deposit money in a maximum of four new ISAs per year — a cash ISA, a stocks and shares ISA, an innovative finance ISA, and a lifetime ISA.

For the current tax year of 2022-2023, you can invest up to £20,000 in ISAs. You can split this allowance across these four ISA types.

 

What types of ISAs are there?

The four types of ISA available for adults to start investing in are:

  • Cash ISAs — These are available as fixed term or easy access accounts, and offer fixed or variable interest rates. To find out more about the accounts we offer at Shawbrook, visit our cash ISAs page.
  • Stocks and shares ISAs — These involve an ISA provider investing your money into stocks and shares on your behalf. Your capital is at risk as you can potentially exit with less money than you invested.
  • Innovative finance ISAs — This is the highest risk ISA type but can offer the highest returns. Innovative finance ISAs involve peer-to-peer lending. You earn money by lending funds and the borrower paying you back with interest.
  • Lifetime ISAs — Also known as a LISA, these can only be opened by adults aged 18-39 (although you can continue to save until you’re 50). They are exclusively for saving for two life events — buying a property and retiring. You can only withdraw money when purchasing a first home or when you’re reaching retirement age (60 or over).

Another type of ISA that adults may be investing in is a Help to Buy ISA. These closed to new investors in November 2019, but savers with existing accounts can continue to deposit into them until November 2029. Help to Buy ISAs are a type of cash ISA, so those saving into a Help to Buy ISA cannot invest in another cash ISA in the same tax year.

Junior ISAs (JISAs) also exist for those under 18, but saving for a child in a JISA does not count towards your limit.

Shawbrook currently only offer cash ISAs, but it’s important to understand the options available before investing.

 

Are there age limits to an ISA?

 

Age limits vary by ISA type:

  • Cash ISA: 16 or over
  • Stocks and shares ISA: 18 or over
  • Innovative finance ISA: 18-39 (for opening an account)
  • Junior ISA: Under 18

 

What happens if you overpay into an ISA?

 

If you accidentally go over the annual ISA limit, you will be automatically refunded.

If you realise you have made this mistake, do not try to fix this yourself. HM Revenue & Customs (HMRC) will contact you after the tax year with instructions about what to do next.

 

Can you transfer from one ISA provider to another?

 

It’s simple to transfer ISAs between providers.

There are several reasons why you might want to transfer an ISA — you may choose to consolidate several ISAs into one, or swap providers to get a better interest rate.

An ISA transfer allows you to move funds without losing any of your tax-free allowance. But you must ensure money is transferred by one of our team to the new provider, not withdrawn yourself. If you withdraw your money from one ISA and deposit it into another, it will be considered a new investment and count towards your annual ISA allowance.

At Shawbrook, it’s straightforward to transfer an existing cash ISA from another provider to one of our accounts. To do this, you need to apply for a new cash ISA. When you apply, we’ll ask you about your current ISA and will work with your existing provider to complete the transfer.

You can also transfer one Shawbrook ISA to another Shawbrook ISA by sending us a message via our secure savings portal.

 

Thinking of opening an ISA?

We offer fixed term and easy access cash ISAs with a range of terms to suit you.

To find out more about our accounts, visit our ISAs page.