Almost half (47%) of Gen Z Brits have said that they wouldn’t feel confident when it comes to opening a cash ISA, Shepherds Friendly has found.

Research by the mutual group revealed that over a third (36%) of Gen Z Brits don’t feel confident in their knowledge of cash ISAs while 41% are not confident in their knowledge of lifetime ISAs.

Furthermore, almost two thirds of Brits overall said that they aren’t confident in their knowledge of cash ISAs.

It comes as a shake-up of the ISA rules are set to come into place next month, including the ability to open multiple ISAs in the same tax year.

However, the study found that almost 24 million adults (53%) in the UK don’t have an ISA, with three in five of those aged 55 and over not having one, making this the least likely generation to do so.

Two thirds of Brits are also unaware that the Government offers a 25% bonus on top of savings paid in to a lifetime ISA.

On average, Brits save an average £339 each month, with men saving significantly more than women (£470 vs £209).

Overall, people in the UK have an average savings pot of £20,612. However, just one in seven Brits use all of their yearly ISA allowance of £20,000.

Chief financial officer at Shepherds Friendly, Derence Lee, said: "Saving money can be a challenge for many of us, even more so in the context of the current financial climate.

"Setting up an ISA can be a great way to help encourage you to build your savings, allowing you to save up to £20,000 tax-free each year. There are several different ISA options to choose from depending on your savings goals, including stocks and shares ISAs that allow you to invest in shares, funds, bonds, and other assets without paying capital gains tax, to junior ISAs that help you to save for your child’s future."

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