How are my savings protected?
We’re authorised by the Financial Conduct Authority (FCA) as an electronic money institution but we’re not a bank. This means that in different scenarios your money is protected in different ways.
How your money in a savings product is protected
When your money is in a savings product through Active Savings, it’s held by that bank or building society.
If the bank or building society providing the savings product fails:
If the bank or building society were to fail, the FSCS will protect your money up to £85,000 per banking licence.
When using Active Savings, it may take longer to receive your money from the FSCS than if you saved directly with the bank or building society. But as a guide, the FSCS aim to make all payments back to savers within three months.
If HL Savings Ltd fails:
As your money is held by the bank or building society who provides the product, it will not be affected if we go out of business and will still be covered by the FSCS. But it may take longer to get back than if it was saved directly with the bank or building society.
How your money in the cash hub is protected
Any money you pay into your Active Savings account goes into the cash hub while you choose your savings products. When you take money out of a savings product it goes back into the cash hub while you decide what to do with it.
If HL Savings Ltd fails:
As an electronic money institution, we issue you electronic money (e-money) equal to your money held in the cash hub. This is so you can see how much money you hold. But the cash hub isn’t a savings account and it doesn’t pay any interest.
In the unlikely event that we (HL Savings Ltd) fail, your money in the cash hub is not covered by the FSCS. Instead, it’s protected through the FCA’s safeguarding rules.
Money in the cash hub is kept separately from our own company money in a safeguarded account with an approved bank (currently Barclays Bank Plc) that creditors can’t access.
There’s no limit to the amount protected through safeguarding, but some costs could be taken by the administrator or liquidator if we were to fail. This could impact the amount that you receive, and it could take longer to get your money back than if it were held directly with a bank.
If the cash hub account provider fails:
If Barclays were to fail, the FSCS will protect up to £85,000 of your eligible deposits in the cash hub, but it may take longer to get your money back than if it were held directly with Barclays. If you hold money with Barclays outside of Active Savings as well, either directly or through other providers, this may also fall under the same £85,000 limit.