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Open a Cash Lifetime ISA today and earn 4.30% AER (variable) interest on your savings. Over 5-years, that’s hundreds more in your pocket than with the closest market competitor.


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Can I have a Cash ISA and Lifetime ISA?

Jenni Hill
Last Updated 12 June 2024

If you’re a first-time buyer under the age of 40, a Lifetime ISA could make it easier to save a deposit towards your first home. You can save up to £4,000 a year in your LISA and the government will boost your contributions by 25%, giving you a bonus of up to £1,000 each tax year. 

If you’re able to save more than this or you’ve already built up a decent house deposit fund, you might be wondering if you can have a cash ISA and a Lifetime ISA at the same time.

In this guide

Can I open a Lifetime ISA if I already have other ISAs?

Yes, you can open a Lifetime ISA even if you already have other ISA types. You might already have a cash ISA or a stocks and shares ISA, for example. By opening a Lifetime ISA as well, you can place up to £4,000 a year in your LISA, get a 25% boost from the government, and then place any additional savings or investments in other types of ISA. 

If you’d like to compare the two, take a look at our Cash ISA vs Lifetime ISA guide

Can you pay into a Lifetime ISA and a Cash ISA in the same year?

Yes, you can pay into a Lifetime ISA and a cash ISA in the same tax year. Under existing ISA rules, you can pay into two or more ISAs in the same tax year providing they are different types. So you could pay into a LISA, cash ISA and stocks and shares ISA in the same tax year if you wish, but you can’t pay into two LISAs, two cash ISAs, or two stocks and shares ISAs in the same tax year.

Confusingly, although you can pay into a cash ISA and a stocks and shares ISA in the same tax year, you can’t pay into a cash Lifetime ISA and a stocks and shares Lifetime ISA in the same tax year. In the eyes of the government, they’re both considered the same type of ISA. 

You just have to make sure that the money you deposit across all of your ISAs (including your Lifetime ISA) does not exceed £20,000 - this is the annual ISA limit.

Can you pay into multiple ISAs in the same tax year?

Cash LISA + Cash ISA

Cash LISA + Cash ISA + Stocks and Shares ISA

Cash LISA + Stocks and Shares LISA

To learn more, take a look at our guide to the Lifetime ISA and the tax year

Does a LISA count towards the ISA limit?

Yes, the money you put in a LISA counts towards the £20,000 a year ISA limit. Since the ISA limit is capped at £4,000 a year, this leaves you with up to £16,000 a year to spread across other types of ISA. 

If you’re saving for a house deposit and you hope to buy a home in the next 3-5 years, it can be a good idea to keep any additional savings in a cash ISA. You’ll earn interest on your savings and your money will be readily available whenever you need it. 

If you place your savings in stocks and shares ISA, your money will be invested in the stock market and the value of your investments can go up and down. There’s no guarantee you’ll get back what you put in, so using this type of ISA for your house deposit can be risky, particularly if you’ll need access to your money in the next few years.

Learn more: Is a Lifetime ISA worth it?

Coming soon:

Tembo Cash ISA

We know that your savings goals don’t vanish once you’ve bought your first home, or you might want to deposit more than £4,000 each year. So we’re launching a Cash ISA; so you can save up to £20k each year, tax-free.

FSCS-protected up to £85,000

Tax-free deposits up to £20,000

By signing up to receive updates about our Cash ISA, you will be agreeing to our email marketing consent. This gives us permission to send you marketing communications via email with updates on our Cash ISA, which you can unsubscribe to at any time. Read our Privacy Policy here.


Can I transfer money from Cash ISA to Lifetime ISA?

Yes, you can transfer money from a Cash ISA to a Lifetime ISA. The funds you transfer into your LISA will qualify for the government bonus, which you’ll usually receive within 4-6 weeks of completing the transfer. However, you can only transfer enough funds into your LISA from a different type of ISA to take you up your £4,000 limit. So if you’ve already put in £1,000 into your LISA this tax year, you can only transfer £3,000 from your ISA into your LISA. If you’ve not put any money into your LISA this tax year yet, you can transfer up to £4,000 from another ISA account. Any additional savings will have to stay in your cash ISA until the following tax year.

Transfer your ISA savings to a Tembo Lifetime ISA

Moving money from your Cash ISA to a Tembo Cash Lifetime ISA couldn’t be easier. All you need to do is download our app, create an account, and transfer the money from your cash ISA. You’ll benefit from our market-leading AER (variable) interest rate of 4.3% and a number of features designed to help you save, including monthly prize draws, and house-buying tips available exclusively to Tembo customers.

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