2025
9
UK ISAs Market Report 2025
2025-11-07T08:01:29+00:00
REPC2494D92_E0C8_454E_938B_F72DA292876A
2995
188401
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Report
en_GB
The cash ISA segment has experienced record growth in the past year, however, market conditions are now shifting in favour of stocks and shares ISAs. In addition to the downward…
UK
Savings and Investments
simple

UK ISAs Market Report 2025

"Falling interest rates and changing regulations are enhancing the appeal of stocks and shares ISAs. However, providers must help savers overcome their aversion to risk."

George Zaborowski - Senior Market Analyst

George Zaborowski - Senior Market Analyst

Market Intelligence ReportSavings and InvestmentsUK

UK ISA Market – Trends and Insights

  • The cash ISA segment has seen record growth over the past year in the UK ISA market, but market conditions are now shifting in favour of stocks and shares ISAs, driven by a downward trend in the base rate and government efforts to stimulate retail investment activity.
  • A potential reduction in the annual cash ISA allowance could encourage more investment in stocks and shares ISAs, with 74% of cash ISA holders under 35 indicating they would be motivated to invest more.
  • Despite the recognised value of ISAs, many consumers still perceive them as overly complex. While new rules have made ISA savings more flexible, further simplification is needed for the market to reach its full potential.
  • The rise of zero-fee or ultra-low-cost FinTech ISA providers is making stocks and shares ISAs more accessible and less intimidating, helping to expand the market.
  • These digital platforms, equipped with fully integrated tools and features, are educating and guiding investors to make informed, personalised decisions. AI is expected to play a key role in enhancing these platforms with even more customised guidance.

This Report Looks at the Following Areas:

  • The short-, medium- and long-term impact of the economic and regulatory environment on ISAs
  • How digital commission-free providers, like Trading 212 and Robinhood, are transforming the ISA market
  • Key factors driving the choice of ISA provider and current ISA owner saving and investment intentions over the next year
  • How a potential reduction in the annual cash ISA contribution limit would impact saving and investment behaviour
  • Consumer preference for penalty-free withdrawals and low transaction fees when choosing an ISA provider
  • The level of consumer understanding when it comes to ISA benefits and whether consumers actively check the progress of their ISA investments

Collapse All

  1. EXECUTIVE SUMMARY

    • Opportunities for the ISA market
    • AI can empower consumers to invest and manage risk
    • Close the stocks & shares ISA gender gap to boost growth
    • Enhanced cash ISA flexibility will maintain demand while rates start to decline
    • Market dynamics and outlook
    • Market size & forecast
    • Market predictions
    • Slower growth in cash ISA subscriptions anticipated
    • Consistent climb in stocks and shares ISA subscriptions expected
    • Retail banking brands control the cash ISAs market
    • Graph 1: market share of cash ISA or lifetime cash ISA providers, 2025
    • Investment specialists play a bigger role in stocks and share ISAs
    • Graph 2: market share of stocks and shares ISA or lifetime stocks and share ISA providers, 2025
    • Falling rates and government initiatives will boost stocks and shares ISA growth
    • What consumers want and why
    • Savers continue to prioritise products with safe returns
    • Graph 3: ownership of savings and investment products, 2025
    • ISA owners plan to increase the amount held in their ISA accounts
    • Graph 4: ISA intentions over the next 12 months, 2025
    • Competitive returns and flexibility drive choice of ISA provider
    • Graph 5: important factors when choosing an ISA provider, 2025
    • ISAs are highly valued, but some still find them too complex
    • Graph 6: attitudes towards ISAs, % of respondents who agree with statement, 2025
    • Planned cap on cash ISA contributions will motivate under-35s to shift cash into stocks and shares ISAs
    • Graph 7: cash ISA owners who would be encouraged to invest/invest more into stocks and shares ISAs if cash ISA limit is reduced, by age, 2025
    • Innovation and marketing
    • Lightyear launches stocks & shares ISA backed by AI
    • Social media empowers ISA providers to promote the product as well as to educate

  2. MARKET DYNAMICS

    • Market size
    • Value of ISA subscriptions surges in 2023/24
    • Various factors and Budget speculation drive growth in ISA subscriptions
    • Stocks and shares ISAs continue to dominate share of funds
    • Graph 8: market value of ISA assets under management, by component, 2013/14-23/24
    • Falling rates and government efforts may boost interest in stocks and shares ISAs
    • Managed funds the top choice for investors
    • Market forecast
    • Slower growth in cash ISA subscriptions anticipated
    • Consistent climb in stocks and shares ISA subscriptions expected
    • Shift in market conditions to favour stocks and shares ISA growth
    • Market segmentation
    • Stocks and shares ISA new business rebounds
    • Lifetime ISA subscriptions reach record high
    • Innovative Finance ISA decline accelerates
    • Average cash ISA subscriptions expand sharply in 2023/24
    • Graph 9: average subscription, by type of ISA, 2018/19 – 23/24
    • Stocks and share ISA average contributions likely to gain as savings rates dip
    • Market share
    • Nationwide and Barclays are the most popular cash ISA providers
    • Graph 10: market share of cash ISA or lifetime cash ISA providers, 2025
    • Retail banking brands dominate cash ISAs
    • Barclays most commonly used for stocks & shares ISAs
    • Graph 11: market share of stocks and shares ISA or lifetime stocks and share ISA providers, 2025
    • Investment specialists play a bigger role in stocks and share ISAs
    • Channels to market
    • New ISA business driven by non-advised sales
    • Market environment
    • Base rate trending down
    • Cash ISA savings rates decline, but remain competitive
    • ISA rates continue to mirror fixed bonds rates
    • Graph 12: average monthly quoted interest rates for fixed cash ISAs versus fixed bonds, 2021- 25
    • Number of higher-rate tax payers continues to expand
    • Graph 13: total number of taxpayers and higher-rate taxpayers, 2021/22-25/26
    • Consumer financial confidence has improved, but frailties remain
    • Graph 14: financial confidence index, 2020-25
    • Graph 15: financial wellbeing index, 2020-25
    • Ongoing pressure on household budgets will maintain focus on near-term financial resilience
    • Household savings ratio remains elevated
    • Graph 16: household savings ratio, 2019-25
    • Cash ISA deposits continue to rise
    • Social, environmental and legal factors
    • Government eager to boost stocks and shares ownership
    • CGT rate rises boost the appeal of ISAs, but annual limits are frozen until 2030
    • FCA aims to lower barriers for first-time investors with targeted support
    • Withdrawal of the LISA and consultation on replacement

  3. WHAT CONSUMERS WANT AND WHY

    • ISA ownership
    • Products with secure returns prioritised by savers
    • Graph 17: ownership of savings and investment products, 2025
    • Cash ISAs are most popular ISA product
    • Notable gender gap in stocks and shares ISA ownership remains
    • Graph 18: ownership of stocks and shares ISAs, by gender and age, 2025
    • ISA intentions
    • Nearly a third expect to increase total ISA savings
    • Graph 19: ISA intentions over the next 12 months, 2025
    • ISA subscription value growth to be driven by wealthier consumers
    • Only a minority intend to switch providers or open a new type of ISA
    • Factors when choosing an ISA provider
    • Competitive rates and returns are key, but flexibility, low fees and reputation are also valued
    • Graph 20: important factors when choosing an ISA provider, 2025
    • Older and more affluent the most focused on returns
    • Digital tools and educational content most appealing to under-35s
    • Graph 21: importance of digital tools/features, by age, 2025
    • Graph 22: importance of educational ISA content, by age, 2025
    • In-person support still relevant for both younger and older savers
    • Attitudes towards ISAs
    • Most ISA owners strive to make the most of their annual allowance
    • Graph 23: attitudes and behaviours towards ISAs, 2025
    • Younger ISA owners most eager to maximise contributions
    • Graph 24: ISA owners who try to contribute as much of annual allowance as possible, by age, 2025
    • Further ISA simplification key to reducing consumer confusion
    • Younger cash ISA owners most likely to invest in stocks and shares ISAs if limits change
    • Graph 25: cash ISA owners who would be encouraged to invest/invest more into stocks and shares ISAs if cash ISA limit is reduced, by age, 2025
    • Digital providers well placed to deliver investors the support they need

  4. INNOVATION AND MARKETING TRENDS

    • Competitive strategies
    • Cash ISA providers fight for new business with high rates and short-term boosts
    • Plum Cash ISA regular savers can win up to £10,000
    • Cash incentives being used to lure in new Stocks and Shares ISA customers
    • Stocks & Shares ISA providers also using referral bonuses to drum up new business
    • Fidelity and AJ Bell will cover up to £500 in ISA transfer costs
    • Launch activity and innovation
    • Hargreaves Lansdown links up with UK fintech to enter the cash ISA space…
    • …and becomes the first to offer retail investors access to LTAFs
    • Lightyear launches AI-supported Stocks & Shares ISA
    • Revolut adds Stocks & Shares ISA to its ‘app-first experience’
    • Robinhood to launch no-fee stocks and shares ISA
    • Advertising and marketing activity
    • Adspend is centred around ISA season
    • Graph 26: monthly above-the-line, online display and direct mail adspend on ISAs, 2023-25
    • ISA providers dedicate most of their adspend to social media and TV
    • Graph 27: proportional distribution of above-the-line, online display and direct mail adspend on ISAs, by media type, 2021/22-24/25
    • Providers leverage social media to promote as well as educate
    • Skipton Building Society promotes ISA range with ‘guessing game’ campaign
    • OneFamily launches TV ad promoting its LISA
    • NatWest calls on young people to take action about their finances

  5. APPENDIX

    • Supplementary data
    • Number of accounts subscribed and value of subscriptions
    • ISA assets under management
    • Household deposit balances
    • Total ISA advertising spend
    • Total ISA advertising spend by advertiser
    • Market forecast data and methodology
    • Market forecast for cash ISAs – value
    • Market forecast for stocks and shares ISAs – value
    • Forecast methodology
    • Report scope and definitions
    • Market definition
    • Abbreviations and terms
    • Methodology
    • Consumer research methodology
    • External data sources
    • Nielsen Ad Intel coverage

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