Cash ISA flows have remained stable ahead of the Budget, according to the latest Bank of England data, despite fears that the limit might be slashed to push savers towards investing.
Savers put £2.4bn into cash ISAs in September 2025, roughly the same amount as in August and actually down from the £3.5bn piled in during the same month last year.
Laith Khalaf, head of investment analysis at AJ Bell, said: “For many people, a laissez-faire attitude probably makes sense. The vast majority of cash ISA savers don’t use the full £20,000 allowance, and may therefore be unperturbed by the prospect of a reduction, even quite a dramatic one.
“As we get nearer to the Budget, the klaxons warning about the cash ISA allowance will probably get more shrill, and we may therefore see more buying now while stocks last.
“On the face of it, there’s a similarity here with people taking their pension tax-free cash out ahead of the Budget, in case the chancellor clamps down on it. However taking tax-free cash out of a pension is irreversible, while money paid into a Cash ISA can be taken out at any time and keeps the taxman at bay.
“The motivation behind these two activities might be the same fiscal event, but the outcomes are very different.”
