The Martin Lewis Podcast Everything you need to know about ISAs (Cash & Shares) - but were too afraid to ask!
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Dec 11, 2025 Dive into the complexities of ISAs with insights on cash, stocks, and the future of Lifetime ISAs. Discover how new rules allow multiple ISAs annually and the impact of recent budget changes limiting cash ISA allowances. Explore smart strategies on saving, investing, and avoiding penalties when transferring ISAs. Martin shares beginner tips for DIY shares ISAs and debates the pros and cons of Lifetime ISAs versus pensions. Plus, get festive with listener holiday tips and learn about the car insurance loyalty penalty!
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ISA Is A Wrapper Not A Product
- An ISA is a tax wrapper, not a product, that shields savings or investments from tax.
- Choose what to put inside the ISA (cash or shares) based on whether you should save or invest.
Sequence: Debts, Emergency Fund, Then Invest
- Pay off expensive debts first, then build a 3–6 month emergency cash fund before investing.
- Invest money you won't need for 5+ years because diversified investing likely outperforms savings long-term.
2027 Cash ISA Cut To £12k For Under‑65s
- From April 2027 cash ISA contributions for under-65s drop to £12,000 while total ISA limit stays £20,000.
- You can split the remainder into a stocks and shares ISA to keep within the overall £20,000 cap.