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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
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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
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
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
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
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
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
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