Before opening an ISA, it’s important you work out exactly what you need from your next account - whether that’s flexibility, easy-access or maximum return. Try to figure out what’s worked well for you this time around and what needs to change moving forward in your next account. Here are a couple of things to consider when it comes to transferring to a new account:

• ISA rates: Generally speaking, the higher the rates on your new ISA account the better your return. However, as with standard savings accounts, the best rates tend to coincide with reduced accessibility to your funds. If you’re able to limit access to your money, the rates available will likely be more generous. Always keep in mind that some initial terms often drop off after 12 months and may not offer the best longer term value.
• Accessibility: Will you need access to your funds throughout? Make sure to always read the fine details and ensure the accessibility of your chosen account works for you, whether fixed-rate or easy access.

ISAs are a tax efficient way to build your savings. With an annual tax-free threshold of £20,000 (unlike other savings accounts), ISA savers can earn safely, store their funds and gain tax-free interest for the year.

This threshold becomes particularly important during ISA season. If, come February or March, you haven’t reached the annual limit, you’re at risk of losing the full tax-free benefit an ISA offers. So if you have money sitting in another savings or a current account, moving this into your ISA during this time will help you maximise your savings.

Multiple ISA accounts

When it comes to understanding accounts, many savers will ask the question ‘can I pay into two ISAs in the same tax year?’, and the short answer is yes. However, the annual £20k threshold applies no matter how many ISAs you hold. Your total ISA savings, across one or multiple accounts, cannot exceed the ISA allowance.

Also, whilst you’re able to hold multiple ISA accounts, you aren’t able to pay into two cash ISAs within the same tax year. You're also only able to open one new ISA each tax year.

When it comes to understanding accounts, many savers will ask the question ‘can I pay into two ISAs in the same tax year?’, and the short answer is yes. However, the annual £20k threshold applies no matter how many ISAs you hold. Your total ISA savings, across one or multiple accounts, cannot exceed the ISA allowance.

Also, whilst you’re able to hold multiple ISA accounts, you aren’t able to pay into two cash ISAs within the same tax year. You're also only able to open one new ISA each tax year.

There are a number of different ISA account types, and each account will help you to save in different ways. There are currently four types of ISA account: a Cash ISA, Stocks and Shares ISAs, Lifetime ISAs and Junior ISAs.

Benefits:

• Tax-free perks: Not only do you receive a tax-free allowance, but savers can also transfer their cash to other ISA users and keep the tax-free status.
• Guaranteed protection: Under the Financial Services Compensation Scheme (FSCS), money deposited into a Cash ISA is protected up to the value of £85k

Limitations:

• Savings cap: There are limits to the amount that you can stash away.
• ISA rates: In recent years, ISA rates have not been quite as competitive as they once were.
• One at a time: You can only save into one cash ISA at a time.