Cash ISAs had a record year in 2025, with £57bn of money paid into the accounts, according to the latest Bank of England Money and Credit figures.
December saw £5.2bn paid into cash ISAs – a record for a non-tax year end month.
The high inflows were prompted by Budget rumours and the decision to cut the cash ISA allowance from April 2027.
Laura Suter, director of personal finance at AJ Bell, said: “The 2025 figures mark the highest inflows in the past 10 years and the biggest since the ISA allowance rose to £20,000 in 2017. It’s a stark contrast to just four years ago, in 2022, when there were net outflows from cash ISAs, as more people took money out of them than paid into them.”
|
Year |
Cash ISA inflows (£m) |
|
2016 |
£7,247 |
|
2017 |
-£646 |
|
2018 |
£7,223 |
|
2019 |
£13,570 |
|
2020 |
£1,484 |
|
2021 |
-£4,685 |
|
2022 |
-£1,109 |
|
2023 |
£47,656 |
|
2024 |
£50,794 |
|
2025 |
£56,792 |
|
Source: Bank of England/AJ Bell. |
|
Ms Suter said: “There’s no doubt that the rumours around cash ISAs being cut and the eventual decision to slash the cash ISA allowance for under 65s in last year’s Budget will have meant more people rushed to use the accounts, despite the fact the cut won’t happen until April 2027. Inflows to cash ISAs in December 2025 were 47% higher than the same month a year earlier, showing the Reeves effect on the accounts.”
Mark Hicks, director of active savings, Hargreaves Lansdown, said: “The amount put into cash ISAs held up impressively yet again. The Budget had just delivered bad news on a lower cash ISA limit for those under 65 from April 2027, so savers were taking advantage while they could.
“It means we’ve had two consecutive months of strong ISA savings around the Budget, as first people worried about what might happen to the allowance, and then the bad news dropped.”