The vast majority of cash ISA savers (87%) believe they need a significant savings buffer to feel comfortable investing, according to a new study by Moneybox.

The firm’s findings revealed that an average threshold of £27,617 would make savers feel comfortable before investing.

Moneybox carried out a nationwide survey of 1,000 cash ISA savers and found that over two in five (44%) said that building up their cash savings is the key to increasing their motivation to invest.

Among those who hold a cash ISA, almost half (48%) began their investing journey after opening a cash ISA, with 65% doing so within two years. Moneybox said this demonstrates the “critical role” cash ISAs play in helping people move from saving to investing with confidence.

Chief savings officer at Moneybox, Cecilia Mourain, commented: “Cash ISAs play a critical role in helping people build financial security and the confidence to take their first steps into investing. A strong cash foundation enables households to weather shocks and pursue long-term goals, from homeownership to retirement.”

Ahead of the Autumn Budget, Moneybox also found that an overwhelming 93% of respondents aw cash ISAs as vital for building financial security and resilience while 88% called for the Government to protect the cash ISA tax free savings allowance.

Four in five respondents (80%) said that cutting the allowance would undermine financial confidence, while just 9% said it would prompt them to start investing more.

“In a period of economic uncertainty, consistency and clarity in savings policy is essential,” Mourain added.

“Millions of people rely on the cash ISA to build their financial future, and any changes should be carefully considered to ensure they continue to support savers on their journey from building resilience through saving to long-term wealth.”

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