Overview

• HMRC reports 15 million ISAs were opened in 2023–24, the most in 13 years, with cash ISA accounts rising by about 2.1 million to nearly 10 million.
• Cash ISA holdings jumped 67% to roughly £70bn in 2023–24 and have since been reported at a record near £103bn as households parked more savings.
• Lifetime ISA early-withdrawal charges totaled about £102m in 2024/25, up from £75.3m the previous year, reflecting more non‑qualifying withdrawals.
• Under current rules, taking money from a LISA before age 60 for non‑qualifying reasons incurs a 25% charge on the amount withdrawn.
• Advisers cite a rush to ‘stuff’ cash ISAs on rumours of allowance cuts and warn some cash ISAs may lag inflation, pointing some savers to low‑risk money market funds within stocks and shares ISAs.