The wealthiest Stocks and Shares ISA accounts hold an average of 17 times more value than their Cash ISA counterparts, according to new figures from HM Revenue and Customs (HMRC).
Data obtained through a Freedom of Information (FOI) request by InvestEngine reveals a stark disparity in the top-tier savings pots.
For the 2022/23 tax year, the average value of the 25 highest-value Stocks and Shares ISAs stood at a staggering £10,980,000.
In contrast, the average value for the 25 largest Cash ISAs was significantly lower, at £640,000.
These figures, which were rounded to the nearest £10,000, are based on the number of accounts rather than individual account holders.
Further insights from the HMRC document indicate that approximately 3,080 ISA accounts held a market value exceeding £1 million in the same tax year.
The data also showed 30 Cash ISA accounts with over £500,000, while a substantial 38,680 Stocks and Shares accounts contained at least £500,000. These specific account numbers were rounded to the nearest 10.
While around 1,530 cash Isas had £250,000-plus in them, the total for stocks and shares Isas was 244,570 in 2022/23.
Speculation over potential changes to the cash Isa limit has intensified in the run-up to the Budget.
Andrew Prosser, head of investments at InvestEngine, said the data obtained through the FOI “reveals a clear and growing divide between saving and investing”.
He said: “While cash Isas will always have an important role, especially for shorter-term financial needs, the figures set out clearly the value of long-term investing, with the highest-value stocks and shares Isas now worth 17 times that of the top cash Isas on average.
“Even beyond the top tier, the pattern is the same. Only 30 cash Isas across the country hold over £500,000, compared to almost 39,000 stocks and shares Isas. The difference reflects how consistent investing has proven to be the most effective route to building meaningful, long-term wealth.
“It’s these kinds of numbers that truly help demonstrate the potential that investing holds.”
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