How many ISAs can I have?

There are five different types of ISA:

• Stocks and Shares ISA
• Lifetime ISA
• Junior ISA
• Cash ISA
• Innovative Finance ISA

Who can open them and how much you can pay in varies. We explain below.

This article is written to explain ISA rules, it is not personal advice. If you are not sure what to do, please ask for advice. Tax rules can change, and benefits depend on your own circumstances.

Each tax year adults have a £20,000 ISA allowance, which can be used across all these types of ISA, except the Junior ISA. You can pay into one of each of these four types of ISA in each tax year.

Because you can open a new one of these ISAs each tax year with a new provider, you could open as many as four every tax year. What you cannot do is pay into two of the same type of ISA in the same tax year. For example, you cannot pay into two Stocks and Shares ISAs in the same tax year. But you could open a Stocks and Shares ISA and then a Cash ISA in the same tax year.

Investing in a Stocks and Shares ISA gives you the chance to grow your money more over the long term. But unlike the security offered by saving in a Cash ISA, investments rise and fall in value so you can get back less than you put in.

You can use your £20,000 allowance across these four ISA types as you wish. But the rules are different for the Lifetime ISA. It’s designed especially to save or invest towards a first home or later life. The maximum you can pay into a Lifetime ISA each year is £4,000, and it counts towards your total £20,000 annual ISA allowance. You also need to be between 18-39 to open a Lifetime ISA, and can continue to pay into one until you’re 50. If you pay the maximum of £4,000 into a Lifetime ISA, the remaining allowance of £16,000 can be spread across any combination of one or more of the remaining three types of ISA.

Hargreaves Lansdown does not currently offer an Innovative Finance ISA.

Junior ISAs

For children, parents and guardians can open a Junior ISA. The Junior ISA allowance is currently £9,000 each tax year. But a child can only hold one Junior Cash ISA and one Junior Stocks and Shares ISA at one time.

When a child turns 16, it’s a little more complicated. They can open a Cash ISA using the £20,000 ISA allowance for adults, while keeping their Junior ISA allowance until they turn 18. We only offer our Cash ISA to adults over the age of 18.

Hold all your ISAs together in one place

It’s easy to collect plenty of ISAs over the years. And having them spread across different platforms can create a lot of work. Save time and effort by transferring them to one provider.

Find out more about transferring to HL

If you’re considering transferring, make sure to check if your current providers charge exit fees.