Initial investments into new Isas grew in the first quarter of the year despite ongoing cost-of-living pressures, according to research from Scottish Friendly.
The mutual’s latest Investor Index, which analyses its own customer data, found the opening contributions of new Isa accounts jumped 11 per cent quarter-on-quarter in Q1.
Scottish Friendly said this suggested 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 per cent in Q1, compared to a 9 per cent rise for men.
Contributions to new Isa accounts rose across all age groups in Q1 — most notably among those aged 50 to 64 (15 per cent uplift).
Younger adults (18 to 34) opening new Isas boosted their contributions by 9 per cent and those aged 35 to 49 increased theirs by 6 per cent.
Kevin Brown, savings specialist at Scottish Friendly, said: “Against a backdrop of continued macroeconomic 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.
On a regional level, Scotland saw the strongest growth in average Isa opening balances, up 19 per cent quarter-on-quarter.
The North East and North West followed, with double-digit gains of 17 per cent and 16 per cent, respectively.
Wales was the only region to see a fall, with average opening balances down 3 per cent.
Junior Isas
A similar pattern played out across Junior Isas, with the opening balances on new accounts increasing by 10 per cent compared to the previous quarter.
Broken down by parents, fathers increased their contributions to their child’s JISA by an average of 11 per cent in Q1 compared with the previous quarter while mothers increased theirs by 10 per cent.
Meanwhile, parents in the East Midlands saw the sharpest increase in average opening JISA contributions, up 30 per cent quarter-on-quarter — more than the rest of the UK.
Greater London and the North East followed, both with increases of 26 per cent on average.
“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,” Brown said.
“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.”
sonia.rach@ft.com
