Should You Move £1m From Savings to Stocks? What You Need to Know

Over 33,000 British savers are currently holding at least £1 million in cash savings accounts — and the government wants them to invest it instead.

The figure, based on HMRC data from 2025, reveals how many high-net-worth individuals are keeping their money in banks and building societies rather than the stock market. The Labour government believes shifting more cash into British stocks and shares would strengthen our economy and boost business growth. But is it the right move for you?

Why cash savings might not be enough

If you have substantial savings, there’s a real issue to consider: inflation. Right now, inflation stands at 2.6 per cent. If your savings account pays less than this in interest, your money is losing purchasing power every year. While top cash savings accounts currently offer around 4.5 per cent or more, rates could fall again in future.

Over the long term, investing in stocks and shares has historically delivered better returns. According to financial data analysed for this story, equity investments averaged 12.9 per cent annual returns over the past decade — far outstripping the typical 2.18 per cent from a cash ISA.

But there’s a catch

Unlike a savings account, investment returns aren’t guaranteed. Stock values can go down as well as up, and you could lose money if you need to withdraw during a downturn. That’s why financial experts say you should only invest money you won’t need for at least five years, and keep three months’ essential living expenses in accessible cash first.

What’s changing soon

The government is pushing people towards investing by tightening the cash ISA rules. From April 2027, the annual cash ISA allowance will drop from £20,000 to £12,000. This makes tax-free cash savings less attractive and encourages people to put money into stocks and shares ISAs instead.

What to do next

If you have substantial savings, chat with a qualified financial adviser who can look at your whole situation — your age, how much you need access to, and your attitude to risk. Spreading money between safe cash savings and longer-term investments might be the sensible middle ground.