Could your cash savings be working harder?

Recent HMRC figures show that in the 2023/24 tax year, £69.5 billion was placed into Cash ISAs. Analysts expect this number to rise in 2024/25, driven by high interest rates and a preference for liquidity. Many savers are prioritising stability over market volatility. For them, cash isn’t just sitting idle—it’s a strategic choice.

Survey carried out by Insignis. Originally published 16th October 2025.

Why Cash Still Matters

Cash offers flexibility, supports future planning, and provides control when so much else feels uncertain. But here’s the question: could your cash be working harder for you?

Holding too much cash can come with drawbacks:

• Inflation Risk
  If inflation is higher than your interest rate, your money loses real value.

• Opportunity Cost
  Historically, investments like equities and bonds have outperformed cash over the long term.

• Tax Considerations
  Interest earned above your personal allowance may be taxable, while ISAs and certain investments offer tax-efficient growth.

The Current Challenge

Much of the money in Cash ISAs is still sitting in low-yield accounts with limited protection. This is where your adviser can help, by exploring options to improve your risk-return profile and manage your wider assets more efficiently.

The goal isn’t to eliminate cash entirely, but to strike the right balance for your risk tolerance and financial goals.

Alternatives to Consider

• Stocks & Shares ISAs – Tax-efficient and designed for long-term growth.

• Government & Corporate Bonds – Lower risk than equities, with predictable income streams.

• Diversified Funds or ETFs – Spread risk across multiple assets while aiming for higher returns.

If You Still Need Cash

Even if cash remains part of your portfolio, there may be smarter ways to hold it. Your adviser can help you:

• Access products from multiple FSCS-protected banks

• Consolidate ISA savings under one tax wrapper

• Secure competitive rates without extra admin

Together with your adviser, you can make sure your cash is working as hard as it should, and identify opportunities to make your money go further.

This article is for general information and does not constitute personal financial advice. If you’re unsure what’s best for you, seek independent financial advice.

Past performance is not a guide to future performance, nor a reliable indicator of future results or performance. The value of investments, and the income or capital entitlement which may derive from them, if any, may go down as well as up and is not guaranteed; therefore investors may not get back the amount originally invested.