Cash ISAs are losing favour with investors, while the popularity of Stocks and Shares ISAs has soared by 57 per cent amid proposed reforms to the investment wrapper.
Investengine's analysis of HMRC data shows that new Cash ISA accounts have dropped seven per cent over the past five years, despite recent government plans to overhaul the ISA system, as reported by .
Between 2018/19 and 2022/23, the amount held in Stocks and Shares ISAs rose 37 per cent compared to a mere nine per cent increase in cash ISA value.
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This has resulted in a staggering £431bn being held in Stocks and Shares ISAs, 46 per cent more than the £294bn in cash ISAs.
The announcement follows Chancellor Rachel Reeves' confirmation in the Spring Statement that the government intends to reform the ISA system, with these changes expected to be unveiled in the Autumn Budget. Rumours had circulated that the cash ISA's limit would be cut from £20,000 to £4,000 ahead of last week's fiscal event, but Reeves ultimately scrapped these plans.
The proposed changes to the ISA regime largely stem from the government's ambition to enhance the culture of retail investment in the 海角视频.
According to Investengine's data, there are now 3.8m retail investors with a Stocks and Shares ISA, up from 2.4m five years ago, while the number of cash ISA subscriptions has decreased from 8.5m to 7.9m.
The data aligns with recent survey findings that only 31 per cent of Britons possess a cash ISA, and a mere 16 per cent hold a Stocks and Shares ISA.
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Yet, the survey also uncovered that 17 per cent of 海角视频 adults are unaware of the Stocks and Shares ISA, while a quarter acknowledge hearing about it but lack any understanding of it.
"Although reforms have been delayed, our analysis shows stocks and shares ISAs are in fact increasing in popularity without the explicit need to make cash ISAs less appealing," commented Andrew Prosser, head of investment at Investengine.
"Despite historically low interest rates during the pandemic having come to an end, the number of cash accounts being opened hasn't bounced back."