HMRC's 2024 ISA changes: What savers need know to maximise free cash

With the start of the new tax year In April comes the renewal of the £20,000 tax-free limit for Individual Savings Account (ISA), which allows savers to earn interest on their savings without it affecting how much they pay HM Revenue and Customs. But the 2024 tax year also brings with it a series of changes to the way these savings accounts work.

New rules make it easier for people to move their savings around to take advantage of new deals or better interest rates, or even have a greater say in how their savings cash is invested - making it important for anyone storing their savings in an ISA to ensure that they are making their money work for them.

While the rule changes also meant that 16 to 18-year-olds are now unable to open an ISA, with current Junior ISAs in limbo until the account holder turns 18. However, for savvy savers who are willing to shop around for a better deal, these changes will make it significantly easier to make sure they are getting the best deal possible.

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The four main types of ISA currently offered are: the easy to withdraw cash ISAs, the higher return stocks and shares ISAs, the investor-focused innovative finance ISAs, and the long term Lifetime ISAs.

With the exception of the Lifetime ISA, which is designed for long-term saving towards a mortgage or investment, savers can now open multiple ISAs of the same type to make the most of their savings.

Since April 6, savers have been able to open, for example, three separate Cash ISAs for the first time. Previously, money could only be paid into an ISA of each type each year.

For example, a saver could put £2000 into one Cash ISA to take advantage of a cashback