Stocks and shares ISAs outpaced cash ISAs between February 2025 and 2026 respectively, with fund growth from investing averaging 11.2% in the past 12 months, Moneyfacts has found.

The latest data marks a consecutive year of positive growth returns on stocks and shares ISAs.

This compares to the Moneyfacts average cash ISA rate, which returned 3.48% over the same period. The average return on this product is down compared to the previous 12 months.

Moneyfacts stated that confidence remains a “key divider” for new investors, with Aviva revealing that 55% of consumers have no investments.

A further 39% of consumers think that it is too risky to invest.

Finance expert at Moneyfacts, Rachel Springall, said that this latest data should be a wake-up call to those who fear investing, although it is important to not rely on returns over the shorter-term when making longer-term investment decisions.

She added: "It is going to take a lot more than positive returns to encourage an investing culture in the UK. Not every saver will feel confident enough to invest, but if they get good guidance, they can start small and slowly gain more knowledge to encourage them to increase their deposits.

"Cash is considered a safe choice, but investing shows the gains that could be made over the longer-term. Granted, past performance is not guaranteed to be repeated, so short-term gains should not be a decision maker in isolation. The past year alone laid bare the importance of seeking advice before taking the plunge to invest, some sectors boom one year and perform badly the next but can bounce back."

The latest data comes after the UK Government made changes to encourage investments in the Autumn Budget, such as the cut to the cash ISA allowance.

Springall concluded: "The Government has been very vocal about the desire for more investment in the UK, and by April 2026, the Retail Investment Campaign is expected to be launched. The initiative is intended to raise awareness of the importance of investing to people’s future financial wellbeing and highlight the value of investing to the economy.

"Those intrigued to know how well UK fund sectors have fared over the past 12 months may be pleased to see the UK All Companies fund returned 13.72%, slightly higher than a year prior of 13.26%."

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