- Cash ISAs have the highest level of awareness (78%), but CapitalRise data shows awareness about other ISA types remains low
- 12% of consumers are confused by the range of different ISA types that are available to them
With ISA season in full swing – and fresh from the Chancellor’s new British ISA announcement – leading property investment platform and Innovative Finance ISA provider CapitalRise breaks down consumer awareness of the different Individual Savings Accounts (ISAs) currently available in the UK
Awareness by type
The study, which surveyed 2,000 adults from across the UK, revealed more than ten times as many consumers have heard of Cash ISAs (78%) than Innovative Finance ISAs (7%) demonstrating the huge gap in awareness between different ISA types.
This continues across other ISAs on the market, with the majority of respondents familiar with Stocks & Shares ISAs (60%), but half or less familiar with Lifetime (50%), Help to Buy (47%), Junior (44%) and Flexible (32%) ISAs.
Type of ISA | Consumer awareness |
| Cash ISA | 78% |
| Stocks & Shares ISA | 60% |
| Lifetime ISA | 50% |
| Help to Buy ISA | 47% |
| Junior ISA | 44% |
| Flexible ISA | 32% |
| Innovative Finance ISA | 7% |
Improving awareness of ISA options
Nearly half (49%) of respondents say having a broad range of ISA types to cater for different people’s needs is a positive thing. However, a third (33%) believe more education is required to help people understand the options that are available to them.
This is evidenced by 12% of consumers who admit they struggle to keep up with ISA changes and the growing number of different types has left them feeling confused.
In keeping with this, the IFISA – least known among consumers – was the latest type of ISA to be introduced, launching in 2016. IFISAs are tax wrappers for money invested in certain alternative investments. In CapitalRise’s case, funds are invested into loans to developers looking to finance new prime property projects in areas across London and the Home Counties.
CapitalRise found awareness of IFISAs is much higher among younger generations, with 11% of 18 to 34 year olds familiar with them, compared to just 2% of over 65s. This could indicate older investors are more set on traditional types and perhaps less open to the newer ISAs entering the market.
Uma Rajah, CEO and Co-Founder of CapitalRise, said:
“The introduction of the British ISA in last month’s Budget is a testament to the commitment to bolster investment and savings, which is crucial for our economy’s resilience and sustainability. Yet, amidst this promising development, we must acknowledge the imperative for greater education surrounding the existing ISA types already on the market.
“Our research has spotlighted huge gaps in consumer knowledge that urgently need addressing. Just 7% of those we surveyed were familiar with IFISAs – only 1% higher than when we conducted the same survey last year, which shows awareness is growing but at a very slow pace.
“Low awareness of the different types of ISA available means people could be missing out on good options for their own savings and investments, in particular not making the most of their £20,000 tax-free ISA allowance.
“Broadening the range of options to meet different people’s financial requirements is fantastic, but it must be done in tandem with improving awareness of the products already available on the market.”
