Money Saving Expert Martin Lewis has issued key advice for people with more than one Cash ISA – following a change in the rules by the government.
Speaking on the latest episode of The Martin Lewis podcast, the MSE founder explained to his listeners and co-host Adrian Chiles how Cash ISA rules now work following a change to fiscal rules in 2024.
Last year, a long-standing rule limiting people to only one Cash ISA or Stocks and Shares ISA in a single year was abolished. It now means that savers can take advantage of several different Cash ISAs and Stocks and Shares ISAs, including fixes and easy access, all within the same tax year.
Explaining on the latest, July 5 episode of The Martin Lewis Podcast on BBC Sounds and Spotify, Martin Lewis said: “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 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.”
Changes to Cash ISAs are rumoured to be on the way, after the government refused to rule out a possible reduction to the limits in future.
Currently, you can put £20,000 into Cash ISAs within a single tax year (indeed, across multiple ISAs). But reports indicate that the government is considering cutting limits as low as £4,000 in future, though the change isn’t likely to be implemented until 2026.
The change would, according to insiders, encourage more people to invest instead of keeping money in Cash ISAs, with stocks and shares ISAs left unaffected.
Earlier this year, Martin explained the thinking behind the changes. He said: “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.”
