One in two (47%) UK adults save into at least one Cash ISA; and two in three Cash ISA savers (67%) say that Cash ISAs are their favourite type of savings account, according to new market data collected and assessed by Flagstone and Opinium*.
The most popular place to safeguard and grow your cash
Last year, Cash ISAs were the most popular place for savers to put their spare cash: 34% of savers with surplus funds saved into Cash ISAs, 32% saved them into non-ISA savings accounts, 27% left surplus cash in current accounts, and 18% invested their funds.
Today the average Cash ISA saver has 1.8 Cash ISAs; and almost one in five (17%) Cash ISA savers save into at least three Cash ISAs.
The average amount held in Cash ISAs is £20,633, but the difference between men and women’s balances is stark.
On average, men have £25,297 in Cash ISA savings while the average woman has £15,440 – a gender gap of 40%. With an average £27,576, Babyboomers (aged 62 to 80) have 50% more in their Cash ISAs than the next generation after them, Gen X (aged 46 to 61) who save £16,154.
A flight to ISAs after the 2025 Budget
The data, which was collected in January 2026 from 2,000 UK adults, corroborates indications that Cash ISAs are in even higher demand than usual since Chancellor Rachel Reeves confirmed her intention to reduce the Cash ISA annual deposit to £12,000 from April 2027.
According to the Bank of England, savers piled £5.1 billion into Cash ISAs in November 2025 in anticipation of the Budget, in December a further £5.2 billion was deposited, and by the end of 2025, a record £57 billion had been deposited in Cash ISAs through the year.
Tax free – and a whole lot more
Being able to earn tax-free interest is the top ranking reason why Cash ISA accounts are the favourite among so many savers: indeed, 87% of Cash ISA savers cite it as a key attraction. 65% of Cash ISA savers also admit that the more tax they pay on their income and savings, the more they prefer this type of account over other saving options.
This rises to among Babyboomers (71%), big savers (77% of those with £100,000 to £249,999 in savings and 87% of those with £250,000 or more in savings); and higher earners (76% of those earning £60,001 to £80,000 and 80% of those earning over £80,000).
However, tax exemption is far from Cash ISAs’ only appeal. For many, it is the relative security and safety of Cash ISAs over investing alternatives that give this savings product a significant edge.
68% of savers stick with Cash ISAs because they feel safer than other savings options. 66% choose Cash ISAs over Stocks & Shares ISAs because they are not prepared to put their money at risk. And 58% feel uncomfortable with fluctuation in the value of savings which is associated with the use of a Stocks & Shares ISA.
Additionally, 84% of Cash ISA savers cite their low risk nature as a key benefit, 79% cite ease of understanding, and 72% cite their competitive rates.
Over three quarters (77%) of Cash ISA savers appreciate Cash ISAs because they encourage anyone to develop good savings habits; and 1 in 2 (50%) Cash ISA holders would opt for a cash ISA over a general savings account, even if the latter had a higher interest associated with it.
Pick Cash ISAs if you want to feel wealthier
Less than 3 in 10 (29%) of adults in the UK consider themselves wealthy for their age. This rises significantly, however, among Cash ISA savers – 38% of whom consider themselves wealthy for their stage in life. This rises even more to 48% of those with three or more Cash ISAs.
Conversely, while 56% of UK adults don’t know if they’ll ever feel wealthy in their lifetime, this proportion falls to 41% among savers with three or more Cash ISAs.
Katie Horne, savings expert at Flagstone, which launched its first Cash ISA product in February 2026***:
'Cash ISAs have become the nation’s favourite savings option, and for good reason.
'For so many of us, Cash ISAs have become a staple of our personal finance plan. They play an important role not only in encouraging good savings behaviours and habits, but supporting financial wellbeing and even a positive attitude towards our own personal financial security.'
Never has it been more important to make sure that Cash ISAs remain easily accessible to people taking an active interest in their future money management. Nothing will knock this tax-free savings option from its perch as the nation’s favourite place to guard and grow their hard-earned savings.
Note to Editors
* Based on the number of banks on the panel and the savings accounts on the platform.
** Bank of England data, published January 2026
*** Created to offer savers greater flexibility and protection without transfer and mobility limitations, the Flagstone Cash ISA is a tax wrapper within which a saver can open, maintain and transfer freely between multiple ISA in a single ISA wrapper. Currently Flagstone’s Cash ISA allows savers to access ISAs provided by six UK banks, meaning that a saver can transfer up to £720,000 of ISA holdings safe in the knowledge that those funds are fully protected by FSCS rules.
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Carmen Dixon: 07717 278 846 | carmen@ripplecomms.co
Jo Candy: 07909 992082 | jo@ripplecomms.co