New official data has exposed a dramatic wealth gap between Britons who save and those who invest, with the largest investment pots being worth 17 times more than the biggest cash savings accounts.
The Stark Figures from HMRC
According to figures obtained from HM Revenue and Customs (HMRC) for the 2022/23 tax year, the average value of the top 25 stocks and shares Isas stood at a staggering £10.98 million. In sharp contrast, the average for the top 25 cash Isas was just £640,000.
The data, secured by investing platform InvestEngine via a Freedom of Information (FOI) request, highlights the profound long-term benefits of investing in the markets over traditional saving. The figures were rounded to the nearest £10,000 and are based on the number of accounts, not individual holders.
A Nation of Millionaire Isa Accounts
The HMRC document further detailed the scale of wealth held in these tax-efficient wrappers. It revealed there were approximately 3,080 Isa accounts with a market value exceeding £1 million during that tax year.
The disparity is even more pronounced further down the wealth scale. While the UK contained only 30 cash Isa accounts holding over £500,000, there were a massive 38,680 stocks and shares Isas with balances of at least half a million pounds.
A similar pattern was seen at the £250,000 mark. Just 1,530 cash Isas had reached this threshold, compared to an impressive 244,570 stocks and shares Isas.
Expert Insight: A 'Clear and Growing Divide'
Andrew Prosser, Head of Investments at InvestEngine, stated that the data "reveals a clear and growing divide between saving and investing".
He elaborated, "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. Even beyond the top tier, the pattern is the same. The difference reflects how consistent investing has proven to be the most effective route to building meaningful, long-term wealth."
This analysis emerges amid intensifying speculation about potential changes to Isa allowances ahead of the upcoming Budget, putting the spotlight on personal finance strategies for UK savers and investors.
