# Twenty-four percent of 18 to 24 year olds don’t know what an ISA is Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2019-03-14 Category: NEWS Category URL: https://financedigest.com/category/news Meta Title: Understanding ISA Deadline & Types: Shocking Survey Meta Description: Learn about the ISA deadline and the different types of ISAs available. Improve your financial knowledge and make informed investing decisions. URL: https://financedigest.com/twenty-four-percent-of-18-to-24-year-olds-dont-know-what-an-isa-ishtml ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/fd160418-1-1-1736839093470-compressed.jpg) _ISA deadline and types of ISA also remain a mystery to majority of British public_ One in four of the UK’s young adults (aged 18 to 24) don’t know what an ISA is, according to research conducted with 2,000 members of the British public. ![Frazer Fearnhead](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/frazer-450x450-1736839093444-compressed.jpg) Frazer Fearnhead The survey, commissioned by peer to peer property lending platform [The House Crowd](https://www.thehousecrowd.com/), also shows a lack of ISA awareness throughout the rest of the population, with 62 percent of all those asked claiming that they don’t know when this year’s ISA deadline is, despite it being less than a month away. Additionally, a whopping 69 percent don’t know the difference between cash ISAs, stocks and shares ISAs, and IFISAs, with an even larger number (87 percent) not knowing what an [Innovative Finance](https://www.financedigest.com/innovations-in-finance.html "Innovations in finance") ISA (IFISA) is. Commenting on the findings, Frazer Fearnhead, founder and CEO of The House Crowd, said: “It seems the government needs to work on increasing general awareness of the ISA product set, especially with the [younger generation](https://www.financedigest.com/british-monarchys-fashion-mantle-passes-to-younger-generation.html "British monarchy’s fashion mantle passes to younger generation"). “Two decades on, the Cash ISA remains a popular option, but average [interest rates](https://www.financedigest.com/london-stocks-slip-ahead-of-key-interest-rate-decisions.html "London stocks slip ahead of key interest rate decisions") can easily be eroded by inflation. Innovative Finance ISAs offer returns that are, on average, much higher and much more consistent. “Our research shows only two percent of the British public will be saving £20,000 or more in the [next 12 months](https://www.financedigest.com/prince-harry-and-meghan-to-visit-britain-next-month.html "Prince Harry and Meghan to visit Britain next month"), which means it’s important they understand their options. Stocks and Shares ISAs increased in popularity in 2017/18, while the amount of [money invested](https://www.financedigest.com/six-tips-for-saving-money-and-investing-wisely.html "Six Tips For Saving Money And Investing Wisely") in cash ISAs fell. “However, a lot of people are reluctant to [invest in stocks and shares](https://www.financedigest.com/railway-bearing-market-size-2021-key-manufacturers-industry-share-investment-opportunities-future-trends-market-impact-revenue-demand-and-analysis-by-forecast-2030.html "Railway Bearing Market Size 2021 Key Manufacturers, Industry Share, Investment Opportunities, Future Trends, Market Impact, Revenue, Demand and Analysis by Forecast 2030") due to volatility. The FTSE, for example, has dropped 9.6 percent since April 2018\*. That’s why the IFISA is appealing – it’s based on lending, which people understand. What [people don’t](https://www.financedigest.com/people-dont-like-to-be-told-no-when-it-comes-to-finance.html "People don’t like to be told no when it comes to finance") realise is that even though their investment isn’t protected by the FSCS, it can be secured against a tangible asset like property. “The government decided to introduce the IFISA, so we [feel it has a responsibility to educate potential investors](https://www.financedigest.com/shipping-companies-feel-the-heat-as-investors-shun-coal.html "Shipping companies feel the heat as investors shun coal") on what it is.” The amount invested in the Innovative Finance ISA increased from £36 million ( [spread across](https://www.financedigest.com/germany-u-s-agree-to-new-covid-curbs-as-omicron-spreads-across-globe.html "Germany, U.S. agree to new COVID curbs as Omicron spreads across globe") 5,000 accounts) in 2016/17, to £290 million (spread across 31,000 accounts) in 2017/18. This was versus approximately £39.8 billion [invested](https://www.financedigest.com/samsung-elec-breaks-ground-on-new-chip-rd-centre-plans-15-billion-investment-by-2028.html "Samsung Elec breaks ground on new chip R&D centre, plans billion investment by 2028") in 7.8 million Cash ISA accounts and approximately £28.7 billion invested in 2.8 million Stocks and Shares ISA accounts in 2017/18\*\*. The research can be accessed in full on The House Crowd’s website. --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---