- The total sum in ISAs hit £951.9 billion in 2024/25 – up £74.6 billion from 2023/24 (Source: Annual savings statistics 2026 - GOV.UK)
- 16.8 million people paid an impressive £135.7 billion into adult ISAs in 2024/25 – that’s £32.7 billion more than a year earlier and an increase of 32%
- 10.7 million savers piled £26.1 billion more into Cash ISAs than a year earlier – a 37.5% rise, with savers squirrelling away £95.6 billion
- 4.9 million investors boosted Stocks and Shares ISAs by £6.1 billion more than a year earlier – that’s a 19.6% increase with investors paying in a total of £37.2 billion
- Lifetime ISA contributions rose to £2.8 billion and 99,750 people bought a house with the proceeds, but £119 million was lost to withdrawal penalties
Sarah Coles, head of personal finance at AJ Bell, comments:
“It was a phenomenal year for ISAs across the board. Money paid into Cash ISAs soared by an impressive 37.5% - which is particularly notable given the previous year had seen such a bumper season for tax-free savings. Meanwhile, the amount poured into stocks and shares was also up an eyewatering 19.6%. The ISA market has become a behemoth, with millions of people protecting almost £1 trillion of their savings and investments from the taxman.
Cash ISAs
“It was a record year for the amount paid into Cash ISAs, thanks in no small part to an influx of savers at the tail end of the year. Savers poured in an eye-watering £95.6 billion, that’s more than three times the sum paid in 2021/22 - just three years earlier.
“All other things being equal, we’d have expected ISA saving to drop with rates, which started falling during the year. However, reports that firms were lobbying the Chancellor to curb Cash ISA use contributed to speculation that the Cash ISA allowance could be cut dramatically, which altered the picture and caused money to flood into savings. Ironically, a move that was intended to encourage people to move from savings to investing managed to dramatically increase the amount being saved, long before the cut was actually announced.
“We can expect 2025/26 to have been another astonishing year for the Cash ISA, as the 2025 Budget revealed that the Cash ISA allowance will fall to £12,000 a year for those under the age of 65 from April 2027. Bank of England data shows April 2026 didn’t match April 2025 for ISA contributions, but that’s largely because contributions were elevated throughout the year.
“The change in the allowance is creeping ever-closer, so anyone who needs to protect big chunks of savings from tax should consider taking advantage ahead of the change. In the five-year fixed rate market, you can match what’s on offer in the wider savings market (5.25%) with a Cash ISA, and easy access and other fixed rates are only fractionally less generous, so the maths is highly likely to stack up in favour of an ISA if you pay tax on your savings.
Stocks and Shares ISAs
“It wasn’t just a Cash ISA bonanza. Investors poured £37.2 billion into 4.9 million Stocks and Shares ISAs – with subscriptions up an impressive 19.6% year-on-year. The attractions of tax-free investing hit home as frozen tax thresholds forced more investors into higher rate tax bands. Meanwhile, shrinking allowances in recent years and rising rates on dividends from April 2022 and Capital Gains on stocks and shares from October 2024 encouraged a flood of people keen to protect their investments from tax. At the same time, the variety and persistence of Budget rumours pushed tax saving into the forefront of people’s minds.
“Enthusiasm for Stocks and Shares ISAs was also fired up by impressive investment performance during the year, with global and US stock markets delivering double-digit gains, driven largely by the strength of tech and AI giants.
Lifetime ISAs
“It was a significant year for the Lifetime ISA (LISA), with inflows of £2.8 billion. The combination of people saving for a property and retirement enticed 1.1 million people into paying into their LISA – the first time this has topped a million.
“The following year’s figures are likely to be affected by the fact the government announced a consultation on a replacement in the November 2025 Budget. Given that there is still no clarity on what that might look like, and the potential bonus on offer, some people may be sitting on their hands while they wait for more certainty, putting their property buying dreams on hold.
“However, there are no guarantees that the replacement product will be as generous as the LISA, so waiting may not pay off. The government has said that anyone who opens a Lifetime ISA will be able to continue using it as normal, so if it suits your needs, there’s no reason not to take the plunge. The government won’t be replacing the retirement savings portion of the Lifetime ISA, either, so if this was something you were considering you may want to take advantage while you can.
“However, it’s key to make sure the product is right for you, and that you don’t end up making unauthorised withdrawals that land you with a punitive charge. During the year, £119 million was lost to exit charges. It shows how many people either don’t fully understand the rules or are forced to raid their savings in an emergency. The average withdrawal is still only £3,088, so people are cashing in relatively small amounts and facing this horrible penalty.”
