Overview
- IG says about 2.8 million people contribute more than £10,000 a year to cash ISAs, roughly a third of holders.
- YouGov polling cited by IG indicates 28% of those savers would invest excess funds, with around 784,000 potentially gaining over £9,000 each across five years for a total uplift of about £7.2 billion.
- IG estimates only £1.6 billion of annual cash ISA contributions would divert from building societies, about 0.4% of their retail deposits, suggesting limited effect on mortgage funding.
- The Building Society Association has warned that reducing the limit could undermine deposit funding for home loans, and a Nottingham Building Society executive argued that both saving and investing have a place.
- IG has launched a public push including a mobile advertising van directed at the Chancellor ahead of the 26 November Budget, with the reduction remaining a proposal rather than policy.