At the end of September, households held £207 billion in cash ISAs, confirming a 14% increase from the previous year, as individuals continued to build up “precautionary buffers against an uncertain economic backdrop”, according to industry trade association UK Finance. The organisation also reported that £295 billion was held in savings accounts requiring notice for withdrawal, reflecting a 10% annual rise.
These figures were disclosed as part of UK Finance’s household finance review for the third quarter of 2025. The association noted that households were saving as a precaution, despite falling savings rates.
The report said: “Household savings are likely to see continued growth through the remainder of the year, although a further downward drift in rates or wage growth could limit this growth somewhat.”
Eric Leenders, managing director of personal finance at UK Finance, said: “Savings growth has moderated but remains strong by historic standards, with households continuing to build precautionary buffers against an uncertain economic backdrop ahead of the autumn Budget.”
After months of speculation about the cash ISA limit, the Government confirmed in the Budget that the annual adult cash ISA subscription limit would be reduced to £12,000 from April 2027. However, the overall annual contribution limit into adult ISAs will remain at £20,000, potentially encouraging savers who reach the £12,000 cash ISA limit to invest more in stocks and shares.
Those aged over 65 will continue to benefit from the complete £20,000 yearly cash ISA allowance. Fresh regulations will additionally be brought in to stop individuals from circumventing the new threshold, including levies on interest earned from cash stored in stocks and shares ISAs and assessments to establish whether funds are being kept in “cash-like” accounts.