Cash still king as Cash ISA savers stay put

Only 2% of Cash ISA holders have opened a Stocks & Shares ISA since the Chancellor announced a reduction in the Cash ISA tax-free limit in November’s Autumn Statement, according to new research from Opinium.  

Cash ISA savers stay put  

From April 2027, the annual cash ISA limit will drop to £12,000 from £20,000 for under-65s, aiming to boost investing in the UK. Nearly four in five (77%) Cash ISA holders say they are aware of the upcoming rule changes to the tax-free limit, compared to just over half (56%) of the public overall.  

However, only one in ten (11%) Cash ISA holders say they plan to open a Stocks & Shares ISA before the change comes into effect, undermining the Chancellor’s claim that the reduction of the tax-free limit will lead to a significant rise in investing among the UK public. This rises to 21% among Gen Z Cash ISA holders, suggesting greater openness to investing among younger people. 

Over two in five (44%) Cash ISA holders are definitely sticking with cash, saying they have no plans to open a Stocks and Shares ISA before the rule changes. Only 16% of Cash ISA holders are considering moving money from a Cash ISA into a Stocks & Shares ISA ahead of 2027, although this rises to 37% among Gen Z.  

Investment risk fears limit Stocks & Shares uptake 

Nearly half (49%) of Cash ISA holders who don’t plan on opening a Stocks & Shares ISA say concerns about investment risk are the main reason. Two in five (38%) say they prefer the security of cash and three in ten (29%) say they do not know enough about investing to open a Stocks & Shares ISA.  

Profile of British savers vs investors  

Nearly half of UK adults (48%) currently have a Cash ISA, compared to only a quarter (23%) who have a Stocks & Shares ISA. Fewer than three in ten (28%) people with a Cash ISA also had a Stocks & Shares ISA before the tax-free limit changes were announced in November 2025. 

Two in five (39%) UK adults say they currently have neither product, rising to 46% among Gen X, compared to 34% of Gen Z and 36% of Millennials.  

Men are twice as likely (31%) to have a Stocks and Shares ISA as women (16%) and are more likely to have a Cash ISA (52% vs 44%). A third (32%) of men have neither product, compared to 45% of women. 

Matthew Howlett, Research Manager at Opinium, comments: “Following the Chancellor’s announcement that the Cash ISA allowance will drop from 2027, our research suggests that relatively few people have taken action already, with just 2% of Cash ISA holders opening a Stocks & Shares ISA since the Autumn Statement. While awareness of the upcoming changes is high, people remain cautious, with only a small number planning to open or transfer money into investment products ahead of 2027. We also see that younger savers appear much more open to investing than older generations, and a significant gap between how likely men and women are to have Stocks & Shares ISAs.”