A new way to save with Active Savings
Exclusive access to the new HL Cash ISA
You can now save up to £20,000 each tax year free from UK income tax through Active Savings, with our new Cash ISA. It’s only available to Active Savings clients at the moment, so you’re one of the first to see it.
We’ve launched the HL Cash ISA with a 0.40% (AER/Tax-free) easy access product from Coventry Building Society. But there's more to come.
What is a Cash ISA?
It’s a tax-efficient way to save - unlike other savings accounts, all interest earnt within a Cash ISA is free from UK income tax.
Tax rules for ISAs can change and their benefits depend on your circumstances.
This is just the start
We’ll bring you more choice and functionality soon, just like your Active Savings account. Including:
- More choice of banking partners
- Fixed term, notice and limited access products
- Ability to top up by debit card directly into the Cash ISA
- Transfer from ISAs held elsewhere
- Transfer to and from the HL Stocks and Shares ISA
Don’t miss out. Once everything’s available you’ll have much more freedom than a typical Cash ISA. Register for our Cash ISA priority alerts now so you’re one of the first to know.
Available Cash ISA products
The Cash ISA works in a similar way to your Active Savings account. When you apply you’ll set up a Cash ISA and then add money to your first savings product to open your Cash ISA. Products available can be added or withdrawn at any time. Minimum deposit requirements apply to individual products.
I'm looking for
AER (Annual Equivalent Rate) shows what the interest rate would be if it was paid and compounded once each year. It helps you compare the rates on different savings products.
Tax-free: Interest in the Cash ISA is paid free of UK income tax. Tax rules can change.
Fixed term products pay a fixed rate and easy access products pay a variable rate.
How much can I save into a Cash ISA?
Each tax year (6 April to 5 April) there’s a limited amount of money you can put in ISAs. This tax year the ISA allowance is £20,000. You can split your allowance between different types of ISAs as long as you don’t exceed the total allowance across them all. However you can’t subscribe to more than one of each type of ISA each tax year. The maximum you can put into a Lifetime ISA (LISA) is £4,000 each tax year.
With Active Savings you can choose an easy access product from Coventry Building Society.
But unlike most Cash ISAs, you’ll be able to save into any combination of partner bank savings products in the HL Cash ISA once they’re available.
Cash ISA charges
We don’t charge you directly to have a Cash ISA, instead we charge our banking partners. This means the same or similar products offered directly by the banks and building societies may have different interest rates to those available through the HL Cash ISA.
Who is my money with and is it protected?
When your money is in a savings product within the HL Cash ISA, your money is with the bank that provides that product. All banks offering products through the HL Cash ISA are covered by the Financial Services Compensation Scheme (FSCS), up to a maximum of £85,000.
The £85,000 limit applies to all deposits you have with that bank under their banking licence – across your Cash ISA and any other accounts held elsewhere. None of our banking partners share a licence with each other. All money coming in and going out of your Cash ISA goes through a transaction account, currently held with Barclays, and is covered under their banking licence until it’s cleared. Find out more about FSCS protection on their website.
How can a Cash ISA help to save tax?
If you have normal savings accounts, you may have to pay tax on the interest you earn. This will depend on the Personal Savings Allowance, which allows you to earn up to £1,000 interest per year without paying tax. Your individual allowance will depend on which income tax band you’re in. Scottish taxpayers should also use the UK tax bands for working out their Personal Savings Allowance.
Basic rate tax payers can earn £1,000 without paying tax. For higher rate tax payers it's £500, and it's £0 if you’re an additional rate tax payer. Low earners may be able to earn more interest without paying income tax on it.
All interest you earn within a Cash ISA is free from UK income tax.
How do I add and withdraw money?
As the Cash ISA is only available to Active Savings clients, all money goes via your Active Savings Account. If you want to add money to your Cash ISA, add it to your Active Savings cash hub first.
Withdrawing is easy and can be done in a few clicks online. When you withdraw money from your Cash ISA, it’ll go via a transaction account and back to your Active Savings cash hub. This could take up to one working day. Both the transaction account and cash hub are held with Barclays. From your cash hub you can choose what you’d like to do with the money. Please remember that when withdrawing money from your Cash ISA it’ll lose its ISA status and can’t be replaced without counting as a new subscription.
Tell us what you think
We’re always glad to receive your feedback. Let us know what you think, by completing our Cash ISA survey.
Want to transfer an existing Cash ISA?
We know that the ability to transfer another ISA is important, so we’re working hard to add this functionality soon. Sign up to our alerts to be told as soon as it’s launched.
Frequently asked questions
This website is issued by Hargreaves Lansdown Asset Management Limited (company number 1896481), which is authorised and regulated by the Financial Conduct Authority with firm reference 115248.
The Active Savings service is provided by Hargreaves Lansdown Savings Limited (company number 8355960). Hargreaves Lansdown Savings Limited is authorised and regulated by the Financial Conduct Authority (firm reference number 915119). Hargreaves Lansdown Savings Limited is authorised by the Financial Conduct Authority under the Electronic Money Regulations 2011 with firm reference 901007 for the issuing of electronic money.
Hargreaves Lansdown Asset Management Limited and Hargreaves Lansdown Savings Limited are subsidiaries of Hargreaves Lansdown plc (company number 2122142).