NEW ISA RULES

New rules since April 2024 mean you have more choice and makes it easier to get a better deal on your savings.

Q: What is new?

A: Prior to April 2024, you were only allowed to open one new ISA of the same type within a a single tax year. So you could only open, for instance 1 cash ISA a year.

The problem is that if you found a much better ISA, you couldn't open that as well, even if you had not usdedyour full £20,000 annual allowance.

So if you put £1 in a Cash ISA then found a much better one, you were stuck, with ther worst paying one for a whole year.

Some ISAs did allow you to switch over to another ISA of the same type but not all ISA providers offered this.

But, since the April 6th, those who hold a cash ISA or stocks and shares ISA, can subscribe to more than one in a tax year.

That means that as long as you keep within the £20,000 savings allowance you can open 1 cash ISA with £10,000 and then see a better one and also open that.

Q: What about ISA transfer?

A: There will also be a change to ISA transfers. Before 6 April, if you wanted to transfer your funds to another ISA, it would have had to be the full amount. Since the new tax year began, you can now partly transfer funds. But, you will have to check that your provider offers this.

Q: What is happening to the minimum age?

The minimum opening age for adult cash Isas will be raised from 16 to 18 years old. This change will bring the product in line with the minimum age requirement for other types of adult Isa.