Flagstone is preparing to launch up to ten new Cash ISA products by the start of 2026, pledging support for savers amid debate over plans to reduce the Cash ISA threshold in the UK.
The platform, which describes itself as the UK’s largest savings platform, said the planned reduction in the Cash ISA allowance is “unfair, shortsighted and irresponsible”. The move comes as new research commissioned by Flagstone reveals many savers feel pressured to invest rather than save, with 70% stating it feels unfair to be expected to take risks with cash that would otherwise be safely held in an ISA.
The findings show that nearly half (46%) of Cash ISA savers lack confidence in making sound investment decisions, while 59% worry about the ability to access invested money when needed.
Data also suggests that reducing the Cash ISA limit is unlikely to significantly shift behaviours towards investing. Currently, 41% of UK adults hold a Cash ISA compared with 22% holding a stocks and shares ISA, while only 18% of Cash ISA savers would consider moving surplus cash into a stocks and shares ISA. Fewer still, just 9%, would look to invest surplus cash outside of the ISA wrapper, with many preferring instead to use extra funds for bills, mortgage repayments or pension contributions.
Flagstone CEO Simon Merchant said, “Reducing how much a saver can put into a Cash ISA is unfair, shortsighted and irresponsible. Our Cash ISA products will offer competitive tax-free rates to savers who deserve to be rewarded for taking action and trying their best to make their money work harder for them. We’re relentlessly told we don’t save enough, so why punish those who do?
“What has happened to encouraging aspiration and good savings behaviours? Reducing how much you can save in an ISA isn’t going to fuel more action on the part of savers, only greater apathy. As a nation, we’re very poor at saving as it is. Take away the greatest incentive (tax free interest) and it becomes even harder to encourage more people to make their money work harder.”
He continued, “It’s fundamentally wrong to encourage people to invest instead of save without equipping them with the education and insight to do so well. Our research shows that savers are understandably worried about what happens to their money if they invest it, and doubt their ability to invest it well. On top of needing to understand market dynamics to some degree, investing requires a certain risk appetite too – something that, for many, takes years to build, and then declines significantly as they get older.”
Flagstone’s upcoming Cash ISAs will be delivered in partnership with up to ten UK banking partners. The ISAs will be managed through Flagstone’s platform, allowing savers to move funds between ISAs to maximise interest while minimising risk. The platform will also support the transfer of existing Cash ISA holdings into its new products.
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