Frequently asked questions
Opening an Active Savings Account
What is a fixed term deposit?
With a fixed term deposit you receive a set rate of interest, but you can’t withdraw your savings before they mature. Fixed terms typically run from 3 months up to 5 years. Depending on the product you will either receive regular interest payments with the money originally deposited repaid at the end of the term, or all interest along with the money originally deposited returned at the end of the term. You generally receive a higher rate of interest the longer you fix for.
What is the minimum amount I can open an Active Savings Account with?
You can start Active Savings with as little as £1,000. Please be aware the maximum payment you can make with a debit card is £99,999.00, although your bank may set lower limits. If you wish to add more than this to your Active Savings Account then you will need to make multiple debit card payments. You have three working days to choose a product or your money will be returned to you.
What type of savings products can I access through Active Savings?
Our banking partners can offer UK fixed term deposits ranging from 3 months up to 5 years. Not all partner banks offer all types of fixed term products, but we aim to provide a range to choose from.
What if I change my mind about committing to a fixed term product?
Some fixed term savings products may offer a cooling off period but some do not. Please check individual product summaries for details and only commit savings once you are happy with the terms.
Is there a limit to the number of products I can have within my Active Savings Account?
No, you can have as many products as you wish.
Can I save in an ISA or SIPP?
No, you cannot currently hold any savings products in a SIPP or ISA, although we hope to offer this in future.
Do any partner bank savings products have teaser rates?
Some banks sometimes offer a high savings rate, which drops after a short period of time to a significantly lower rate. These are known as ‘teaser’ rates. None of our partner banks will have ‘teaser’ rates on Active Savings, they only offer products which provide consistently good rates.
What is the cash hub?
The cash hub is where we hold your money before adding it to your chosen savings products. When you open your Active Savings Account any money you deposit goes into the cash hub. Once you’ve chosen your savings products your money held in the cash hub will be moved into them.
Interest payments, and returned capital from a maturing fixed term product, will be paid into the cash hub. Withdrawals to your Nominated Bank Account can only come from the cash hub, not directly from your products.
Please be aware, money held in the cash hub is held with Barclays and currently earns you 0.0% interest. You need to add money to savings products to start earning interest. Any money in the cash hub must be added to a product within three working days, otherwise it will be returned to you.
Do you offer easy access savings?
We don't currently have any easy access savings available, only fixed terms, but we hope to offer some in future.
Can I open an Active Savings Account without choosing a product?
Yes, you can open your Active Savings Account with a debit card payment or cash transfer from your Fund and Share Account, and choose your savings products later. Your payment will be held in the cash hub, but you must choose your products within three working days or we will move that money to your Fund and Share Account or (if you do not have a Fund and Share Account) we will return that money to you.
Who is eligible to open an account?
Any UK resident aged over 18 can apply. You can’t apply for an account if you live overseas, or aren’t a UK resident for tax purposes.
Can I apply for a joint account, or an account for a child?
Currently you can only open an account in the name of an individual aged over 18 years old. We hope to offer joint accounts, and accounts for children, in the future.
Managing your savings
Why must I choose my products within three working days of money arriving in the cash hub?
The cash hub is regarded as a “payment account” by the Financial Conduct Authority. This means that it can only be used to make deposits into savings products, not to hold money on a long-term basis. Therefore, you can only hold your money in the cash hub for three working days while you choose your savings products. If you have not instructed us to put your money in savings products within three working days of it arriving in the cash hub, your money will be transferred to your Fund and Share Account (if you have one) where it can be held pending your instructions. If you don’t have a Fund and Share Account then your money will be returned to your debit card or Nominated Bank Account.
Once you’ve opened an Active Savings Account you can choose your products by logging into your account and viewing the Latest Rates tab.
How do I access my Active Savings Account if I’ve forgotten my log in details?
You can retrieve all the details you need to access your Active Savings Account, including resetting your password, by visiting the log in section on our website. If you are still having problems accessing your account please call our Helpdesk on 0117 980 9984.
Can I withdraw from a fixed term deposit before the end date?
No, you cannot withdraw from a fixed term deposit before it reaches maturity, other than in extreme circumstances (for example some partner banks may allow withdrawals due to death or financial hardship). So please only commit savings you will not need access to before they mature.
Can I create a savings portfolio?
Yes you can. You can pick and mix products from different banks and building societies to potentially improve overall returns. We offer UK fixed term products of variable terms from 3 months up to 5 years. You can make more of your savings by blending shorter terms for earlier access, and longer terms for potentially higher rates.
How secure is my Active Savings Account?
We take the security of your Active Savings Account very seriously, which is why we’ve invested heavily in security features to protect you and your money. For more details please visit our Online Security Centre.
How can I access my Active Savings Account?
You can access your Active Savings Account at any time by logging in via our secure website, using the same log in details you use to access your other Hargreaves Lansdown accounts. If you are having any problems with your Active Savings Account you can email us or call our award-winning Helpdesk on 0117 980 9995.
Can I access my Active Savings Account through your smartphone app?
Currently you can only view your total Active Savings Account balance on our smartphone app. You can’t see how much you hold in each product. We are planning to add this information, and the ability to move your savings between products, in future.
How will I be able to stay up to date with my savings?
Once you have opened your savings products you will be able to see:
- Your total balance across all your savings
- How much you have in the cash hub
- Your individual savings rate by product
- All your transactions on a single statement
- When your fixed term products are due to mature
- All pending transactions
You'll also automatically receive an annual tax statement as part of your April Investment Report to make completing your tax return simple.
What is a Faster Payment?
The Faster Payments service is a UK banking initiative to reduce payment times between different banks' customer accounts. It means that payments are typically made within a few hours, and no longer than one working day.
How will I know what products are available?
You can see all the currently available products on our Active Savings homepage.
How do I withdraw my savings?
You can typically withdraw your money from the cash hub to your Nominated Bank Account or (if you have one) your Fund and Share Account. However, if you withdraw money within 60 days of adding it to your Active Savings Account, we reserve the right to refund that money to the source of payment. If you have money in a fixed term product you will need to wait until it matures and your savings returned to the cash hub before they can be withdrawn. Please remember you cannot usually withdraw money from fixed term products before they reach their maturity date.
Withdrawals are typically sent via Faster payments, which usually complete within one working day. Other payments can take up to three working days to complete.
How do I open a new product?
Log in to your Hargreaves Lansdown Account. Select your Active Savings Account and choose the Latest Rates tab. Once you’ve chosen a product select 'Details' to read and agree to the all the key information. You can then choose how much to save from your cash hub.
What happens at the end of a fixed term?
Shortly before your product is due to mature we will contact you outlining your options. Once your savings have been returned to the cash hub you have three working days to choose a new savings product or your money will be returned to you. Alternatively, you withdraw them to your Nominated Bank Account or transfer into your Fund and Share Account.
Whatever you decide, you can give us your instructions online without any forms or fuss.
How long does it take for payments to clear into/from my Active Savings Account?
You can add money to or withdraw money from the cash hub at any time. Below we provide a brief summary of how long it generally takes various payment types to clear.
- Debit card payments – one working day
- Cash transfers from a Fund & Share Account – same working day if instructed before 12pm, otherwise one working day
- Cash transfers to a Fund & Share Account - same working day if instructed before 4pm, otherwise one working day
- Withdrawals – up to three working days
How do I set up a Nominated Bank Account?
You may already have a Nominated Bank Account, but if you haven’t you’ll be able to set one up when you open your Active Savings Account. You can check the details and request to change your Nominated Bank Account online. Log in to my account.
Interest payments, charges and tax
What tax information will be provided?
As part of your April bi-annual statement, we will send you a consolidated tax schedule which summarises all the interest you have received in the previous tax year from the products held in your Active Savings Account along with all your other holdings within Hargreaves Lansdown accounts. You are responsible for submitting this to HMRC with your tax return.
Do I pay any charges?
We don’t charge you directly, but the banks and building societies pay us up to 0.25% of balances held per year. This means the same or similar products offered directly by the banks and building societies may have different interest rates to those available on Active Savings. If you would like further details please contact us.
No charges are deducted from the interest paid to you. This means the interest rate you see advertised is the interest rate you receive.
Table of charges Account set up £0 Debit card payments £0 Product opening £0 Annual management charge £0 Switching your savings £0 Withdrawal £0 Interest collection £0 Maturity rollover £0 Transfer in from other HL accounts £0 Transfer out to other HL accounts £0 Account closure £0
How is the interest I receive taxed?
All interest is paid gross, i.e. without any tax deducted. Interest received from products held in your Active Savings Account counts towards your Personal Savings Allowance (in 2017/18 up to £1,000 for non/basic rate taxpayers, £500 for higher rate taxpayers and £0 for additional rate taxpayers). Any interest you receive above these amounts will be taxed at your usual income tax rate. You are responsible for paying any tax due to HM Revenue & Customs. Tax rules change over time and any benefits depend on personal circumstances.
Can interest be rolled up within a savings product?
Some products allow interest to be rolled up, with the original deposit and all interest accrued paid out to you at maturity. For others all interest will be paid back into the cash hub, and cannot be added back into the original product. Please check individual product summaries for details. Once in the hub it will need to be added to a product within three working days, or it will be automatically returned to you.
When will I receive any interest?
How interest will be paid varies by product. Typically interest will be paid annually into the cash hub. Products running for less than a year will have both the capital and all interest repaid into the cash hub at maturity. Please see individual product summaries for details. When interest payments are made into the cash hub they can then be withdrawn or saved into a new product. Once in the hub it will need to be added to a product within three working days, or it will be automatically returned to you.
What is the Financial Services Compensation Scheme?
The Financial Services Compensation Scheme (FSCS) is the UK's deposit guarantee scheme. It pays compensation to consumers in the unlikely event a financial services firm (covered by the scheme) they save or invest with stops trading. For banks and building societies for eligible deposits the compensation limit is £85,000 per banking licence.
Are my savings protected under the Financial Services Compensation Scheme (FSCS)?
All our partner banks are covered by the Financial Services Compensation Scheme (FSCS). This means that, if a partner bank were to fail and is unable to pay its debts, the FSCS will compensate you for any eligible deposits that you hold with that bank, up to £85,000. Any deposits you hold with the partner bank above this limit will not be covered by the FSCS, but could still be reclaimed from the bank through the insolvency process (although repayment is not guaranteed and could take some time to claim).
HLSL does not hold a banking license and Active Savings is not a bank account. This means Active Savings is not part of the Financial Services Compensation Scheme (FSCS). However, any money you place in the cash hub is held with Barclays Bank, and in the event of Barclays becoming insolvent is covered by the FSCS under its banking licence. The same £85,000 limit and conditions as outlined above and below apply. The cash hub account is a segregated trust account and is therefore held separately from Hargreaves Lansdown’s own money. This means that, if we were to fail, your money in the cash hub will not be available to our creditors.
What does the FSCS limit apply to?
The £85,000 compensation limit applies to the combined amount that you hold in all products held under a single banking licence. You should therefore be aware that the compensation limit does not apply per savings product, per account or (in some circumstances) per bank brand. This means that, when considering how to spread deposits or maintain FSCS cover, please note that:
- Any cash you hold outside Active Savings with a partner bank (or Barclays) will count towards your overall compensation limit with that particular bank;
- Some bank and building society 'brands' share banking licences. Deposits with brands under the same banking licence are protected up to £85,000 in total, not per brand. A list of bank and building society brands under the same banking licence can be found here. All banks and building societies with products available through Active Savings, each currently hold individual, separate banking licences.
- The £85,000 limit applies to the combined amount of deposits in all products held under a single banking licence, not per product. So, if you have four products with a particular partner bank, you will need to consider the total amount held across those four products to determine if you have reached your cover limit for that particular bank.
- The compensation limit also applies to any interest you earn on the amounts deposited with a particular bank. This means that, if you deposit £85,000 under a particular banking licence, any interest that is earned and retained for you by that bank will not be covered.
For those with more than £85,000 in savings, splitting deposits between separate banking licences should maintain FSCS coverage – see below for examples of this can be done.
Examples of how your savings are covered by FSCS:
Example 1 - covered
- £40,000 saved with ABC bank (separate banking licence)
- £60,000 saved with XYZ bank (separate banking licence)
All savings are covered by FSCS, as less than £85,000 is held under each separate banking licence.
Example 2 - not all covered
- £40,000 saved with EFG bank (share banking licence with LMN bank)
- £60,000 saved with LMN bank (share banking licence with EFG bank)
A combined total of £100,000 is deposited with EFG and LMN banks, who share the same banking license, so only the first £85,000 is covered. This means £15,000 of the amount deposited is not covered by FSCS.
How is my money held?
All money that you put in to Active Savings is placed in the cash hub, until you add it to a savings product or it is returned to you. Money in the cash hub is held with Barclays Bank, in a pooled client trust account in the name of HLSL Nominee Limited – see “Pooled Accounts” below for further information. Remember you must choose your products within three working days of your money clearing into the cash hub, otherwise it will be sent back to you.
Your money will be deposited with partner banks/building societies in one of two ways: “Pooled Accounts” or “Direct Accounts”. You’ll be told which type on the product summary page. In both cases your money will continue to belong to you, and will be held separately from Hargreaves Lansdown’s own money. You will be able to see your holdings through your Active Savings Account.
Pooled Accounts - most savings products available through Active Savings will be held in Pooled Accounts. Your money in the savings product will be deposited with the partner bank in a pooled client trust account in the name of HLSL Nominee Limited. Your money will be held by the bank with the money of other Active Savings’ clients who have also deposited in that product. In the unlikely event of the default or insolvency of the partner bank, any shortfall in the Pooled Account would be shared proportionately by you and other Active Savings clients in the product. In these circumstances, you may be entitled to compensation under the FSCS.
Direct Accounts - your money in the savings product will be held by the partner bank in a client account in your name. On first depositing in the savings product, you will be provided with the bank’s terms and conditions, which will explain to you (amongst other things) the bank’s obligations to you when holding your money. You’ll still manage these savings through your Active Savings Account and will not typically have direct contact with the bank to manage your savings. In the unlikely event of the default or insolvency of the partner bank you may be entitled to compensation under the FSCS.
Saving more than £85,000?
Be aware, the £85,000 limit applies to the combined amount in all products held under a single banking licence – not per savings product. So, if you hold all your savings in several products from one of our partner banks, then you are only covered for up to £85,000.
However if, for example, you save with two banks with different banking licences, you can save up to £85,000 with each for total FSCS cover of up to £170,000.
The savings of private individuals held with authorised banks and building societies are covered under FSCS. All of our partner banks are authorised by the Prudential Regulation Authority (PRA) and covered under FSCS.
All money coming in and out of the Active Savings Account goes through the cash hub. It is where your money is first held before you select a product, and where interest and capital is paid when your fixed term ends.Find out more
Transferring between HL accounts
How do I transfer money from my Active Savings Account to my Fund and Share Account?
It’s simple to transfer. Just select ‘Transfer to other account’ on the My Savings tab and follow the instructions. Please note you can only transfer savings held in the cash hub. If you want to transfer savings from one of your fixed term products you’ll need to wait for it to mature.
How long does it take to transfer money between my Active Savings Account and Fund and Share Account?
Fund and Share Account to Active Savings Account – instructions received before 12pm on a working day will be processed on the same day. All other instructions will be processed on the next working day.
Active Savings Account to Fund and Share Account - instructions received before 4pm on a working day will be processed on the same day. All other instructions will be processed on the next working day.
Can I transfer money between my Active Savings Account and Fund and Share Account?
Yes, you can transfer any money in the cash hub into your Fund and Share Account online. You can also transfer any un-invested cash held in your Fund and Share Account into your Active Savings Account. If you wish to transfer from your Fund and Share Account, any investments will need to be sold and the trades settled first.