Cash Heavy: Should Britons with £10,000 Rethink Their 75% Cash Strategy?

May 16, 2025

New data from the Financial Conduct Authority reveals that one in five Britons has savings of £25,000 or more, but a daunting 61% of those with more than £10,000 hold the majority in cash rather than investments. While the FCA aims to shift this trend towards mainstream investments, concerns are rising as 10% of individuals lack any cash savings for emergencies. The report highlights a savings culture dominated by cash, partly spurred by high interest rates that make cash accounts more appealing. Financial experts stress the importance of maintaining an emergency fund, recommending three to six months of essential spending in savings. As the government plans potential reforms to ISAs—including a reduction of the cash ISA allowance from £20,000 to £4,000—critics argue this may threaten the financial security of those who already struggle to save. With many lacking confidence in investing, experts urge for a culture shift towards educating the public on both saving and investing to enhance financial literacy and security.

FAQ Section

1. What percentage of Britons have significant cash savings?
One in five Britons have savings of £25,000 or more, while around 10% have over £50,000.

2. What does the FCA recommend regarding cash savings?
The FCA advocates for individuals with over £10,000 in investible assets to consider investing rather than holding most in cash.

3. What are the emergency savings recommendations?
Financial experts recommend maintaining three to six months’ worth of essential spending in cash savings.

4. What ISA reforms are currently being considered?
The government is contemplating reducing the cash ISA allowance from £20,000 to £4,000 to encourage more investments.