Some ISA providers have yet to adopt rule changes designed to boost the tax-efficient savings accounts’ flexibility.
This tax year is the first one when you can open more than one of the same type of ISA.
In the past you could only pay into one type of ISA per provider, but rule changes now mean you can open different ISAs with the same providers.
You still need to make sure you don’t exceed the ISA allowance, but the new rules mean you can pick and mix where you store your money.
In practice, it means you can open an Easy Access Cash ISA, a Notice Cash ISA or others on offer.
Research from financial data firm Moneyfacts suggests nearly two thirds of cash ISA providers won’t let customers open a second account with them in the same tax year.
This applies to building societies and banks, including Barclays, Lloyds, NatWest, Santander and HSBC.
Moneyfacts research carried out for the Guardian newspaper shows 36 out of 98 cash ISA providers it listed will allow multiple accounts in the same tax year.
Rachel Springall, Finance Expert at Moneyfactscompare.co.uk, said savers who want to split their cash across multiple ISAs with the same provider will be left disappointed if firms don’t adjust their systems to accommodate them.
She added: “Firms could stand to lose their customers to their rivals if they take too long to accommodate their loyal savers. However, there will be savers out there who don’t trust the more unfamiliar brands and prefer to stash their savings with a high street bank regardless.
“Unfortunately, this means savers invested with the biggest banks will not feel too encouraged to explore the perks of spreading their investment unless they move their money elsewhere.
“Staying still may also see them miss out on better returns with other providers who are working harder to entice ISA deposits.”
According to Moneyfacts, lenders that currently allow savers to divide their money across the multiple ISAs they offer include Aldermore, Close Brothers Savings, Monzo Bank, Skipton Building Society and TSB.
The Guardian reports that banks including Santander have suggested they could review their stance in future.
A Treasury spokesperson said: “It is a commercial decision for individual ISA providers whether they take advantage of increased flexibility in the ISA system, and customers should compare the terms offered by providers to find a product that suits their needs.”
The full list of lenders allowing savers to mix cash ISAs as of February 28, according to Moneyfacts, are:
Aldermore
Hanley Economic BS
Post Office Money®
Bank of Ireland UK
Harpenden BS
Skipton BS
Beverley BS
Kent Reliance
Suffolk Building Society
Buckinghamshire BS
M&S Bank
Tembo
Castle Trust Bank
Moneybox
The Stafford BS
Charter Savings Bank
Monzo Bank
Trading 212
Chorley Building Society
Nationwide BS
Triodos Bank
Close Brothers Savings
Newcastle BS
TSB
Cynergy Bank
OakNorth Bank
UBL UK
Earl Shilton BS
Paragon Bank
United Trust Bank
Ford Money
Penrith BS
Vernon BS
Hampshire Trust Bank
Plum
Zopa
