Thousands of investors ‘within touching distance’ of being Isa millionaires

Katie Horne, banks relationship manager at Flagstone, said: “This fresh HMRC data confirms something many of us have long suspected: nothing will knock ISAs from their perch as the nation’s favourite place to guard and grow hard-earned savings.

“In just over a quarter of a century, ISAs have completely captured the public’s mood.

“Their popularity stems not just from their tax-free status, but from providing ordinary working people an unprecedented route to amass extraordinary wealth.

“ISAs have opened up a whole world of retail investment and high-interest savings opportunities that, before the turn of the century, were reserved only for high net worth individuals and institutional investors.

“The ISA has democratised saving in a way that no other single financial instrument has and it’s a great thing to celebrate.

“Joining the millionaire’s row won’t be within reach of many ISA savers, but that’s not stopping them from maximising their ISA allowance every year to the best of their ability and then managing that tax-free cash proactively and with discipline to create additional wealth to be spent on their children, mortgage, later life plans, or whatever else they choose.

“Cash ISAs in particular have earned their place at the heart of our savings culture.

“New research (January 2026) by Flagstone and Opinium found that two in three (67 per cent) Cash ISA holders prefer Cash ISAs over all other savings options.

“According to these Cash ISA savers, a Cash ISA’s popularity typically comes down to its tax-free status, low-risk reputation, simplicity and competitive rates, and 77 per cent praise Cash ISAs for encouraging anyone to develop good savings habits.

“Accessible savings options create better savings habits, and encouraging and protecting these is essential above all else.

“The government’s plan to reduce the Cash ISA threshold to £12,000 for anyone aged 65 and under starting next April puts this accessibility at risk.

“Sixty-six per cent of Cash ISA savers choose them over Stocks and Shares ISAs (Flagstone research, January 2026) because they don’t want to put their money at risk and there’s no evidence to suggest that by reducing the cash portion of a saver’s ISA allowance will encourage them to accept more risk for more potential reward.

“Never has it been more important to ensure Cash ISAs remain easily accessible to people taking an active interest in their future money management.”