Opening multiple ISAs

[ScandiNoirNuit]

What are the rules around opening multiple isas in a tax year? I know you can only invest £20k in the year but can you for example have 20 x£1k accounts?

I opened a fixed isa earlier this year and can’t pay more into it as fixed. Could I open another in next few days and pay remaining allowance? I already have plans to use full allowance next year. Thank you.

I believe you can contribute only to two different ISA accounts in a given year: one cash ISA and one "stocks and shares" ISA, with the combined contribution not to exceed £20,000 in a tax year. Assuming the one to which you already contributed is a cash ISA, that would leave only the "stocks and shares ISA".

Despite the name, you can hold cash or low risk short-term government bonds in a stocks and shares ISA. So if my assumption is correct that you already contributed to a cash ISA and cannot add to the same one in this tax year, then my suggestion would be to open a stocks and shares ISA.. If you do not actually want to invest in stocks and shares, you could then either hold cash (but probably without earning any interest), or buy a low risk investment such as a money market fund, a short-term bond fund or an individual UK gilt with a short maturity date, or if you expect to keep the money in the ISA for at least 5-7 years you probably ought to consider buying an investment fund or an ETF in order to have the chance at some sort of investment returns over that period.

You can put money into up to four isas each year but they have to be one of each type e.g.

Cash
Stocks and Shares
Innovative
Lifetime (these are the help to buy and the one where you save for retirement)

So if, for example, you already have a cash ISA you cant have another one but you could have a Stocks and Shares etc

I did not know about the "Innovative Finance" ISA, but from reading about it, it looks like a type of tax-advantaged but high-risk investment. Not for everyone.

On the "Lifetime ISA", before putting any money in that type make sure you understand the restrictions on accessing your funds, as they are different and more restrictive compared to a normal cash or Stocks and Shares ISA. Depending on your circumstances it could be better than a normal ISA (because of the 25% government bonus up to £1000) or it could be worse (because of the restrictions on access to funds).

Too old for a Lisa unfortunately!

You only need one to solve your problem. Stocks and Shares ISA can do that. But you only have until Wednesday so you’d best get on it if you want one! They can be opened online and paid in with a debit card. The two platforms recommended by Which.co.uk are Vanguard and AJ Bell. Vanguard offers lower fees, with a limited selection of funds (only their own; the focus is very low cost passive investing). AJ Bell offers a lot more choice in exchange for slightly higher fees.