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Interest rates

The Bank of England increased the Base Rate to 5.25% on 3 August 2023.

These are the current interest rates paid on Hargreaves Lansdown accounts. These rates have applied since 10 January 2024.

AER stands for Annual Equivalent Rate and shows what the interest rate would be if interest was paid and compounded once each year. Interest is calculated on the daily cleared balance and paid monthly, the interest period is from 10th to the 9th of each month and payment is normally credited within four working days of the end of this period.

Interest in all ISA and SIPP accounts is paid free from UK income tax. Interest in all other accounts is paid gross and you are responsible for paying any tax due on interest that exceeds your Personal Savings Allowance to HM Revenue & Customs. Tax rules can change.

If you hold cash balances in more than one HL account (e.g. an HL SIPP and a Fund and Share Account) these will be considered separately when calculating the tiered interest. Each tiered interest rate applies to the cash held in that specific tier (e.g. a balance of £150,000.00 would receive the rates detailed below on the first £9,999.99, the next £40,000.00, the next £50,000.00 and the remaining £50,000.01). Interest is not paid on balances within your loyalty bonus account and is only paid on balances in income accounts within the Portfolio Management Service.

Cash held in an HL ISA, Junior ISA or Lifetime ISA

Current rates and tiers
Account balance Tax-free % for this tier only AER% for this tier only
£100,000 + 3.70 3.76
£50,000 - £99,999.99 3.40 3.45
£10,000 - £49,999.99 3.20 3.25
£0 - £9,999.99 3.00 3.04

Cash held in a Fund and Share Account

Current rates and tiers
Account balance Gross % for this tier only AER% for this tier only
£100,000 + 2.90 2.94
£50,000 - £99,999.99 2.70 2.73
£10,000 - £49,999.99 2.50 2.53
£0 - £9,999.99 2.25 2.27

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Money held in a Fund and Share Account can be transferred online. Unfortunately we can’t offer transfers from an HL Stocks and Shares ISA or SIPP yet, but we hope to in the future. Register for alerts and we’ll tell you as soon as it’s available.

Cash held in an HL SIPP or Junior SIPP

Current rates and tiers
Account balance Tax-free % for this tier only AER% for this tier only
£100,000 + 4.20 4.28
£50,000 - £99,999.99 3.90 3.97
£10,000 - £49,999.99 3.65 3.71
£0 - £9,999.99 3.45 3.51

Cash held in an HL SIPP Drawdown

Current rates and tiers
Account balance Tax-free % for this tier only AER% for this tier only
£100,000 + 4.55 4.65
£50,000 - £99,999.99 4.20 4.28
£10,000 - £49,999.99 3.90 3.97
£0 - £9,999.99 3.65 3.71

Cash held in the Portfolio Management Service - all accounts except Drawdown and SIPP

Current rates and tiers
Account balance Gross % AER%
£0 + 3.70 3.76

Cash held within the Portfolio Management Service - Drawdown

Current rates and tiers
Account balance Tax-free % for this tier only AER% applied to this tier only
£3,000 + 4.55 4.65
£0 - £2,999.99 3.65 3.71

Cash held within the Portfolio Management Service - SIPP

Current rates and tiers
Account balance Tax-free % AER%
£0 + 4.20 4.28

We do not charge a fee for holding cash or for cash transactions. HL expects to receive interest of between 0.5% below and 0.5% above the prevailing Bank of England base rate over the next 12 months on cash balances held in the Client Bank Accounts and SIPP Trustee Bank Accounts. The rates we pay clients are determined by the nature of the account and how that account is typically used by our clients. For example, we pay our highest rates in Drawdown, which is often used to hold higher levels of cash for rainy-day money in retirement. HL retains the difference between the interest HL receives and the interest paid to you.

HL will not typically invest any cash on your behalf unless you have instructed us to do so. Cash held in your account will typically be the first place we look to for fee collection. You’re able to view and amend your fee collection method in your account settings of your online account or by calling our Helpdesk.

Where is my cash held?

Client money is held in a client bank account. Client bank accounts are designated trust accounts and segregated from our own funds in accordance with the FCA’s client money rules and guidance. This means that any creditors of HL would have no legal right to it and HL cannot use any of this money to cover its obligations.

You’ll have one instantly investable cash balance but this balance is spread across many banks. The majority of your money is held with core UK clearing banks such as Lloyds, HSBC, Bank of Scotland and Barclays. We carefully analyse each bank and move your money between them to help keep it safe – each bank is protected by the Financial Services Compensation Scheme (FSCS), so spreading your money around means you receive more protection.

Our policy for choosing banks is continually reviewed and the primary consideration is always security. Client money held in the HL SIPP is segregated from other client money, so the distribution across banks will differ from the HL Stocks and Shares ISA and Fund and Share Account.

We look at the percentage of total client cash held at each bank and quantify the cash balance you would need to have with us to exceed the FSCS limit of £85,000. For more information on the maximum percentage of client money that could be held with each bank, please visit our cash page.