Opening stocks and shares ISA contributions soar in Q3

-          Opening contributions to stocks & shares ISAs leap 13% in Q3

-          Parents increase JISA contributions by just 4%, highlighting the need for JISA reform

-          Scottish Friendly says mooted plan to cut Cash ISA allowance could lead to investing boom

Investors in new stocks & shares ISAs ramped up their contributions in the third quarter of 2025, according to data from Scottish Friendly.

The data shows that opening contributions to new ISAs surged 13% quarter-on-quarter in Q3, despite the ongoing squeeze on household finances.

Women led the way, marginally, increasing their initial investments by 13% in Q3, although men also registered double-digit growth, at 12%.

By age, the sharpest jump in opening contributions came from 18-34 years olds (21%), followed by 50–64-year-olds (12%) and 35–49-year-olds (7%).

New ISA investors in Northern Ireland hiked their opening contributions by the most (27%) in Q3, followed by those in Scotland (21%), West Midlands (18%), the South West (15%), the North East (13%), Wales (12%), the South East (11%), the North West and Greater London (both 7%), and the East Midlands (4%).

Scottish Friendly’s savings specialist, Kevin Brown, commented on the data: “The rise in opening contributions to stocks and shares ISAs is both surprising and encouraging, particularly given the ongoing pressure on household budgets. A 13% increase suggests that, despite a difficult economic backdrop, many investors are taking a longer-term view and recognising the potential benefits of staying invested through market cycles.

“Rather than pulling back in the face of uncertainty, people appear to be using their ISA allowances to make their money work harder for them. This is a positive sign that households are looking beyond short-term challenges to build resilience and growth over time.

“There is continued speculation that the Chancellor may cut the annual cash ISA allowance in the forthcoming Autumn Statement. If that does happen it could nudge more people to consider investing. Whilst everyone’s personal circumstances always need to be considered, investing has proven time and time again to be savers’ best chance of building wealth and outpacing inflation over the long-term. Therefore, anything that encourages people to do that should be welcomed.”

Scottish Friendly’s data also shows that parents who opened new Junior ISAs (JISAs) in Q3 increased their contributions by 4%, with fathers (5%) increasing their contributions slightly more than mothers (3%).

The smaller increase perhaps highlights the financial pressure that those with children are facing at the moment. 

Brown added: ““The modest rise in Junior ISA contributions reflects the reality that many parents are still feeling the financial strain of higher living costs. Even so, it’s encouraging to see that families continue to prioritise their children’s futures, with fathers and mothers alike increasing their regular savings where possible.

“Raising a family inevitably puts pressure on both time and money, which can mean some parents delay opening a Junior ISA and miss out on the valuable compounding benefits that come with starting early.

“That’s why we continue to call on MPs to consider changing the rules so that close family members – such as grandparents, aunts and uncles – can open a JISA on a child’s behalf. Giving relatives the ability to help set up these accounts would make it easier for more children to benefit fully from long-term investing from the very start of their lives.”