Official Statistics

Commentary for Annual savings statistics: June 2022

Updated 25 November 2022

This bulletin provides commentary and analysis on the Individual Savings Accounts (including Lifetime ISA), Child Trust Fund and Help to Save statistics contained in this release.

1. Individual Savings Accounts (ISAs)

1.1 Number of ISAs subscribed to (Chart uses data from Table 9.4)

Chart 1 below shows that around 12 million Adult ISA accounts were subscribed to in 2020 to 2021, down from 13 million in 2019 to 2020. The number of cash ISAs subscribed to decreased by 1.6 million compared to 2019 to 2020. The number subscribing to stocks and shares ISAs increased by around 860,000. The share of accounts subscribed to in cash has fallen to 66% of accounts, compared to 75% in 2019 to 2020.

Chart 1: Number of Adult ISA accounts subscribed to during the financial year

Around 940,000 Junior ISA accounts were subscribed to in 2020 to 2021, the ninth full financial year since the scheme was launched, down from 1 million in 2019 to 2020.

1.2 Amounts subscribed (Chart uses data from Table 9.4)

Chart 2 shows that around £72 billion was subscribed to Adult ISAs in 2020 to 2021, a decrease of £2.4 billion compared to 2019 to 2020. This decrease was driven by the fall in cash ISA subscriptions, which decreased by £12 billion. The amounts subscribed to stocks and shares ISAs has increased by £10 billion since 2019 to 2020.

Chart 2: Amounts subscribed to Adult ISAs during the financial year

In 2020 to 2021, £1 billion was subscribed to Junior ISAs, around 57% of which was in cash. Average subscriptions in 2020 to 2021 were £1,133, a 19% increase on the 2019 to 2020 figure.

1.3 Market value of ISA funds (Chart uses data from Table 9.6)

Chart 3 shows that at the end of 2020 to 2021 the market value of Adult ISA holdings stood at £687 billion. This is an 11% increase compared to the value at the end of 2019 to 2020. This was driven by a 31% increase in the market value of funds held in Stocks and Shares ISAs. Stocks and shares ISA holdings account for 58% of the market value of ISA funds, a increase from 49% in 2019 to 2020. Cash ISAs account for 42% of the market value, a decrease from 51% in 2019 to 2020.

Chart 3: Adult ISA market values

1.4 ISA holders by income (Charts use data from Tables 9.7 and 9.10)

Chart 4 shows details of the 27 million Adult ISA holders analysed by income band for the year 2019 to 2020. The median ISA holder (by income) had annual income of between £20,000 and £29,999, with an average ISA market value of £21,996. At higher earnings levels the number of ISA holders declines (due to fewer people in higher income bands), but is accompanied by a large increase in average ISA savings values. For ISA holders with incomes of £150,000 or more, the average market value was £74,928.

Chart 4: Number of ISA holders and average ISA market value by income band in 2019 to 2020

Chart 5 shows that the amount subscribed to an ISA increases with the income of the individual subscriber. 15% of subscribers saved at the maximum in 2019 to 2020, rising to 39% of those with income of £100,000 to £149,999, and to 60% of those with income of £150,000 or more. The highest proportion of savers, around 54%, saved between £1 and £2,499.

The chart suggests that some individuals may have contributed more to their ISAs than their annual earnings allow (such as those subscribing the maximum £20,000 with an income of less than £5,000). This may be possible where individuals have existing taxable savings that they are transferring into ISA accounts.

Alternatively, in households with more than one adult, earnings from one high income individual may enable other adults in the household to open an ISA account, in order to maximise the tax free return on their savings.

Chart 5: ISA subscriptions by income band and size of subscription in 2019 to 2020

Chart 6 shows the proportion of ISA holders with different levels of ISA savings value across income bands. Amongst ISA savers with income of £150,000 or more, 44% have ISA savings of £50,000 or greater, compared to just 6% of savers on an income below £5,000. The colours in Chart 6 indicate the market value group each ISA holder is in.

Chart 6: ISA holdings by income band and ISA market value in 2019 to 2020

1.5 ISA holders by age and gender (Charts use data from Tables 9.8 and 9.11)

Chart 7 illustrates the distribution of Adult ISA holdings across different age groups. The lowest number of ISA holders was in the youngest category (under 25), but approximately 79% of this group were active savers in 2019 to 2020.

The greatest number of ISA holders was in the 65 and over group however, a large portion of this group (70%) were not active savers in 2019 to 2020.

Chart 7: Age distribution and average market value of ISA holders in 2019 to 2020

The size of ISA holdings increases with age. Chart 8 shows that the proportion of ISA holders with ISAs valued at £50,000 or more is highest amongst those aged 65 or more, whilst the proportion of ISA holders with ISAs valued at between £1 and £2,499 is highest amongst those under 25. The colours in Chart 8 indicate the market value band each ISA holder is in.

The average ISA market value at the end of 2019 to 2020 was around £3,910 for the under 25 group and £6,366 for the 25 to 34 age group. This is compared to around £46,090 in the 65 and over group.

Chart 8: ISA holdings by age range and ISA market value in 2019 to 2020

The sex split of total number of ISA holders is approximately equal. Chart 9 shows that in 2019 to 2020, females accounted for a marginally higher proportion of the total number of ISAs. Females accounted for 52% of all ISAs and 50% of ISA holdings worth £50,000 or more.

Chart 9: ISA savings by sex in 2019 to 2020

1.6 Geographical location of ISA holders (Charts use data from Table 9.9 and 9.12)

Chart 10 illustrates that amongst English regions, the proportion of adults holding ISAs is greatest in the South West at 57% and lowest in London at 45%.

Chart 10: Proportion of population with ISAs and average market value by English region in 2019 to 2020

Chart 11 shows that at the end of 2019 to 2020, 52% of adults in England had an ISA. By comparison, in Wales, Scotland and Northern Ireland, 54%, 46% and 36% of adults respectively, had ISAs. ISAs held by individuals in England and Scotland had higher average values than the rest of the United Kingdom.

Chart 11: Proportion of population with ISAs and average market value by UK region in 2019 to 2020

2. Lifetime Individual Savings Accounts (LISAs)

2.1 Withdrawals for a house purchase (Charts use data from LISA Table 1a)

Chart 12 shows 50,800 account holders withdrew from their LISA in order to purchase a first time property in 2021 to 2022, an increase of around 15,000 on the previous tax year.

Chart 12: Number of individuals withdrawing for a house purchase

Chart 13 shows that the average value of withdrawal for a house purchase was £13,192 for tax year 2021 to 2022. The average value of withdrawal for a house purchase has increased by approximately £700 since the 2020 to 2021 tax year.

Chart 13: Value of withdrawals for a house purchase

3. Child Trust Funds

3.1 Market value of Child Trust Funds (Charts use data from CTF Table 1 and 2)

Chart 14 shows the average market value of a Child Trust Fund (CTF) in 2020 to 2021 was £1,911. The average market value of stakeholder and non-stakeholder accounts were £1,776 and £2,321, respectively. The average market value of a continuing matured account was £2,721 and for a claimed matured account was £2,142. Around 320,000 accounts have now matured, of which around 175,000 have been claimed as of April 2021. Around 1,000 of the continuing matured accounts have a £0 market value, and around a further 114,000 have between £0.01 and £2,499 market value.

Chart 14: Average market value of Child Trust Funds in 2020 to 2021

Chart 15 shows that in 2020 to 2021, as subscription amount increases, the number of individuals subscribing decreases. The majority of CTF subscriptions were in the £1 to £249 band, with 510,000 subscribers. Around 4.6 million CTFs received no subscription. The average subscription to stakeholder accounts was £419 whilst the average subscription to non-stakeholder accounts was £590. The average subscription across all CTFs was £457.

Chart 15: Child Trust Fund subscribers by subscription amount in 2020 to 2021

4. Help to Save

Chart 16 shows that in the past twelve months (April 2021 to March 2022), 75,250 Help to Save accounts have been opened, which is a reduction of approximately 32,900 accounts compared to April 2020 to March 2021. This reflects the difference in the number of people eligible for Help to Save each year. The total number of accounts opened now stands at 359,200, a 26% increase on the total number of accounts opened by the end of March 2021.

This version of the release also contains statistics at a government office region, local authority district and parliamentary constituency level. Birmingham has remained the local authority district with the greatest number of accounts opened and the North West has remained the region with the most accounts.

In total, around 310,000 individuals have now made a deposit to their Help to Save account, up 32% compared to the total as of March 2021. For those individuals making deposits, the average deposit per person per month has remained at £48; the maximum permitted monthly deposit is £50, with 92% of monthly deposits being the maximum. However, there are 48,400 open accounts that have still received no deposit.

Total deposits to the scheme in the 12 month period of April 2021 to March 2022 were around £110 million.

Chart 16: Total number of Help to Save accounts opened, number of accounts receiving deposits per month, and total value of monthly deposits

Source: HMRC data

4.1 Contact Information

The statistical contacts for this publication are:

• K Ismail

• T Arthur

• D Bromilow

• P Holmes

• A O’Brien

• [email protected]

For press queries, please contact HMRC Press Office: [email protected]