Initial investments into new ISAs in the UK surge in Q1 2025
Initial investments into new ISAs soar 11% in Q1 2025 compared to the previous quarter despite ongoing cost-of-living pressures
Women increase their contributions at a faster rate than men in Q1
Parents and legal guardians increased the amount they put towards their children’s futures by 10% in Q1
Initial investments into new ISAs soared in the first quarter despite ongoing cost-of-living pressures, new research from Scottish Friendly reveals.
The mutual’s latest Investor Index, which analyses its own customer data, shows that the opening contributions of new ISA accounts jumped 11% quarter-on-quarter in Q1.
The figures suggest that investors are choosing to put more away despite the uncertain economic climate – a sign of growing awareness around the need to build financial resilience.
Broken down by gender, women who opened new ISA accounts increased their contributions by 13% in Q1, compared to a 9% rise for men.
Contributions to new ISA accounts rose across all age groups in Q1 – most notably among those aged 50-64 (15% uplift). Younger adults (18–34) opening new ISAs boosted their contributions by 9% and those aged 35–49 increased theirs by 6%.
On a regional level, Scotland saw the strongest growth in average ISA opening balances, up 19% quarter-on-quarter. The North East and North West followed, with double-digit gains of 17% and 16%, respectively. Wales was the only region to see a fall, with average opening balances down 3%.
A similar pattern played out across Junior ISAs (JISAs), with the opening balances on new accounts increasing by 10% compared to the previous quarter.
Broken down by parents, fathers increased their contributions to their child’s JISA by an average of 11% in Q1 compared with the previous quarter while mothers increased theirs by 10%.
Parents in the East Midlands saw the sharpest increase in average opening JISA contributions, up 30% quarter-on-quarter – more than the rest of the UK. Greater London and the North East followed, both with increases of 26% on average.
Scottish Friendly’s savings specialist, Kevin Brown, commented on the data: “Against a backdrop of continued macro-economic uncertainty and rising living costs, people are understandably looking for ways to gain greater control over their financial futures. For those who can afford to do so, ISAs remain a trusted and tax-efficient tool to help build long-term financial resilience.
“What’s striking about these figures is not just that people are still investing – it’s that they’re investing more, even in challenging times. Whether it’s older adults shoring up their retirement plans or parents putting more aside for their children’s future, it’s clear many UK households are taking action where they can to prepare for whatever lies ahead.”
-ENDS-
Contacts:
Paul Thomas, Head of News and Content at MRM
07884 667981
Editors notes:
Remember that the value of investments can go down as well as up and the child could get back less than you paid in.
Past performance is no guide to future results.
Tax treatment depends on individual circumstances which can change in the future.
About Scottish Friendly
Scottish Friendly is a leading UK mutual life and investments organisation. It provides its members and their families with a wide range of investment and protection solutions and provides life and investment products and services to other financial organisations.
Scottish Friendly has roots stretching back to 1862. Established as the City of Glasgow Friendly Society, its name changed in October 1992 when it took over Scottish Friendly Assurance.
Scottish Friendly, Galbraith House, 16 Blythswood Square, Glasgow, G2 4HJ
Scottish Friendly Assurance Society Limited. Authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority.
Scottish Friendly Asset Managers Limited. Authorised and regulated by the Financial Conduct Authority.