The Future of the ISA: What UK Consumers Want from Long-Term Saving

The Future of the ISA: What UK Consumers Want from Long-Term Saving

Individual Savings Accounts (ISAs) remain one of the UK's most established and trusted financial products. For decades, they have enabled millions of people to save tax-efficiently, whether for emergencies, major life events or long-term goals.

Robinhood UK recently launched its first stocks & shares ISA, combining zero account fees, low FX fees*, and an intuitive user experience and a 2% cash bonus on eligible contributions until 5 April 2026**- giving UK investors a simpler, more rewarding way to invest tax-efficiently.

Alongside this launch, Robinhood is unveiling new research into UK consumers' attitudes towards ISAs, long-term saving, and investing - both for themselves and for their family. The findings point to a consistent theme: people value security and accessibility, but they also want their money to retain its purchasing power and, over time, grow.

The landscape for ISAs is shifting: recent Budget announcements have reflected careful policymaking aimed at improving the effectiveness of ISAs while preserving the features consumers trust. Against this backdrop, Robinhood conducted research based on a nationally representative survey of 3,331 UK adults, alongside in-depth qualitative interviews, conducted in late 2025.

Our research revealed:

1. Cash comfort breaks down once inflation is made visible. When respondents were shown how inflation erodes the real value of cash holdings, interest in a Cash ISA dropped sharply - more than a third of those who were initially interested lost interest after seeing the illustration. The same pattern appears in how people prioritise their savings decisions: 32% said their top priority is ensuring their money keeps pace with or outgrows inflation, and 30% prioritised the potential for growth. By contrast, only 17% saw minimising the risk of losing money as a defining feature of where to save. Taken together, the findings suggest a striking behavioural shift in which many people now see the risk of their savings falling behind inflation as greater than the risks associated with investing.

2. Investing is often seen as a reward for wealth, not a way to build it. Many Britons believe they need to build up a substantial cash buffer before allocating any of their savings to a Stocks and Shares ISA. In our research, respondents said they would need a median of £8,764 held separately in cash before opening a Stocks and Shares ISA, with nearly one in five (19%) believing they would need more than £20,000. This perception positions cash holding as a prerequisite, rather than one component of a longer-term saving journey. As a result, meaningful sums can remain concentrated in low-return accounts even when people are working towards long-term goals.

3. Non-cash ISA options are less well understood within the saving landscape. Understanding drops as soon as savings move beyond cash. Just under half of respondents (49%) said they knew at least a little about how Stocks and Shares ISAs work, despite their long-standing place within the ISA framework. Familiarity falls further for more specialised products: 36% of respondents reported they understand the Lifetime ISA (LISA) and just 9% of respondents claimed any familiarity with the Innovative Finance ISA. Only 2% of respondents said they understood the Innovate Finance ISA well. Taken together, these findings suggest that lower engagement with non-cash ISA options reflects how savings choices are structured and presented, rather than a lack of appetite for long-term saving.

Implications for the Future of ISAs

ISAs are widely trusted by the public, and this trust will continue to shape how consumers respond to changes in the product over time. Overall, the research highlights that UK consumers are cautious, thoughtful and forward-looking. They want to make informed decisions, understand the trade-offs involved and need to feel confident that their savings are working for them over the long term. Throughout this report, we make recommendations intended to address identified challenges.

Jordan Sinclair, President, Robinhood UK said: "Too often, investing is seen as a reward for wealth rather than a way to build it. There is a clear opportunity to challenge this perception and increase awareness of the role investing can play in creating financial freedom. This is not about moving away from saving, but about empowering UK consumers to make clearer choices across assets so their money works harder for them."

Research methodology

Robinhood designed and carried out a nationally representative online survey of 3,311 respondents between 24th October and 5th November 2026. The survey was fielded by Yonder Data Solutions. This large sample size allowed for significant exploration of results according to subgroups - both demographically and according to reason for saving (e.g., for retirement, for a child).

To aid in the development of questionnaire content, ten in-depth interviews were conducted in July and August 2025 with a range of different savers. Secondary data sources used are referenced throughout the report.

* Other costs apply, see our fee schedule.

** Offer terms and conditions apply. Hold eligible contributions for 1 year to keep full cash bonus. Transfers from your Robinhood individual investing account, as well as ISA transfers from other providers, will not earn the 2% cash bonus. Offer ends 5 April 2026.

Disclosures:

All investments involve risk and loss of principal is possible. Tax treatment depends on your individual circumstances and ISA rules, which may change. Robinhood does not provide investment advice. Individual investors should make their own decisions.

Robinhood UK Limited is a company registered in England and Wales (09908051) and is authorised and regulated by the Financial Conduct Authority - Firm reference 823590. Robinhood UK Limited's registered office is 70 Saint Mary Axe (Suite 404), London, England, EC3A 8BE. Robinhood UK onboards UK customers and has the lead customer relationship with UK customers in relation to their use of the Robinhood UK app and website.

5215825