Martin Lewis has explained how a change in the rules now means savers can take out several different cash ISAs or stocks and shares ISAs within the same tax year
Money Saving Expert Martin Lewis has offered crucial guidance for individuals with more than one Cash ISA, in light of a recent change in government regulations. On the latest episode of The Martin Lewis podcast, the founder of MSE clarified to his listeners and co-host Adrian Chiles how Cash ISA rules now operate following a fiscal rule alteration in 2024.
Previously, a long-standing rule restricted people to only one Cash ISA or Stocks and Shares ISA per year, but this has now been scrapped. This means savers can now utilise several different Cash ISAs and Stocks and Shares ISAs, including fixed-rate and easy access, all within the same tax year.
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During the July 5 episode of The Martin Lewis Podcast on BBC Sounds and Spotify, Martin Lewis explained: “Ever since ISAs were set up, there’s been a limit on the amount of money you can have in, and you’ve been able to open a Cash ISA and a Stocks and Shares ISA in the same year.
“But you’ve only been able to open one of each type. But, from April 6 2024, the rules were changed, and the restriction on subscribing to one ISA of each type, in a year, was removed.
“You may now open as many different ISAs of one type, for example a Cash ISA, you can have a fix, and you can have two different Cash ISAs, all of which you’ve opened and put money into, within one tax year.”
There are whispers that changes to Cash ISAs could be imminent, after the government declined to dismiss a potential reduction to the limits in the future, reports the Express.
Currently, savers can stash up to £20,000 into Cash ISAs within a single tax year, across various accounts. However, there’s buzz that the government might slash this limit to as little as £4,000, potentially from 2026.
This move could, insiders claim, nudge more Brits towards investing rather than hoarding cash in ISAs, with stocks and shares ISAs reportedly not facing the same cuts.
Earlier in the year, money guru Martin weighed in on the potential changes, remarking: “The concept behind it is that it’d encourage people to put the money in shares ISAs instead (personally, I’m sceptical if it’d work – many will just keep saving but pay more tax).
“Of course, everything is pure supposition – I doubt any firm decision has been made yet. But if it happens as rumoured, it WOULDN’T impact money already in cash ISAs, it’d just cut what you can put in, in future.
“Whether it’d start immediately, or in January or April 2026, no one knows (including at this point, I suspect, Rachel Reeves). Yet if you plan to save in a cash ISA, all of this would suggest getting it in sooner would seem safer.”