Today, Insignis, the cash management platform, and The Private Office, a leading firm of Chartered independent financial advisers, reveal findings from a joint survey of 91 financial advisers and 4360 adult savers, that cash is not held out of fear or uncertainty of the stock market, but as a conscious and deliberate strategy by savers.
Countering the narrative that cash is used by those who lack investment experience, the research uncovers how savers and advisers increasingly regard cash as a key component of modern financial and wealth planning.
Key findings from savers include:
- A quarter of savers hold more than 75% of their savings in cash.
- Three quarters (76%) of respondents see earning a competitive interest rate on their cash savings as a key part of their wealth strategy.
- The most common reason for holding cash for more than half (53%) of savers was being in, or nearing, retirement and wanting to reduce risk and exposure to volatility.
- Emergency access remains the most common reason for holding cash in low-interest accounts for 51% of savers, with administrative hassle of switching in second place at 18%.
- Just one in ten (11%) of savers hold cash due to lack of investment experience.
The picture painted by advisers echoes the growing importance placed on cash savings. They report:
- Eight out of 10 advisers regularly discuss cash management with their clients as part of their overall wealth-building strategy.
- Clients view cash as a source of security and certainty, even at the expense of higher returns – though nearly half (48%) of savers will move accounts, provided access remains reasonable.
- A quarter of advisers surveyed report that between 25-50% of their clients hold their cash in accounts giving less than 2% interest – far below the best available rates in the market.
The findings come at a time when the Treasury is preparing to launch a consultation on ISA reform, which may include cutting the cash element of the tax-free allowance to just £4,000 – and could have far-reaching implications for the UK’s savers who hold £300 billion in cash ISAs.
Kate Toumazi, CEO of Insignis, said:
“The findings reaffirm what advisers have always told us at Insignis: that maintaining robust cash reserves is not a sign of indecision, but a deliberate and increasingly sophisticated part of long-term financial planning.
“The key for savers is to ensure that this cash is actively managed. Earning competitive interest while keeping funds accessible and safe isn’t the admin nightmare it used to be. Far from being a fallback for the uninformed, our findings show cash is held as a long-term strategic asset which savers need to be supported with, rather than pushed away from.”
Anna Bowes, Personal Finance Expert at The Private Office, said:
“Cash is the cornerstone of a resilient financial plan – not a weakness. It’s the pot that protects. While cash is often dismissed for lacking the long-term growth potential of investments, criticism misses the point. Cash isn’t there just to chase returns – it’s there to also provide stability, liquidity, and customer choice when it matters most.
“At a time when billions remain in poorly paying, taxable accounts, penalising those who proactively use cash ISAs to manage their money efficiently feels counterproductive.”