Saver vows to avoid stocks-and-shares ISA after loss as cash ISA limit shrinks

Marc Poskett, a 39-year-old from Middlesborough, North Yorkshire, intends to abandon stocks-and-shares ISAs after losing money while saving for his first home. He originally opened a cash ISA in 2017, depositing £20,000, and now uses a cash ISA to fund a buy-to-let purchase, holding £8,000 so far. With government reforms set for April 2027 reducing the cash ISA limit to £12,000 and requiring the remaining £8,000 to be placed in a stocks-and-shares or innovative finance ISA, Poskett says he will instead place any excess in a regular savings account.

He praises cash ISAs for their safety, steady interest and accessibility, contrasting them with the volatility of equities. Data from Nottingham Building Society shows a rise in high-value cash ISA contributions, while Moneybox’s Brian Byrnes warns the cut may frustrate savers and limit their confidence to invest. Poskett argues the policy change will make acquiring a second home more difficult despite the government’s aim to boost investment.