We don’t support this browser anymore.
This means our website may not look and work as you would expect. Read more about browsers and how to update them here.

Skip to main content
  • Register
  • Help
  • Contact us

5 tips to boost your savings

Getting a better interest rate on your cash savings could be easier than you think with these top tips.

Important notes

This article isn’t personal advice. If you’re not sure whether an investment is right for you please seek advice. If you choose to invest the value of your investment will rise and fall, so you could get back less than you put in.

The last year’s been hard on savers. Rates have been slashed, leaving lots of people’s cash sitting around earning little-to-no interest.

But we’re not here to dwell on the past. Get your cash working harder with our five simple tips.

Remember this article isn’t personal advice and inflation will reduce the value of money over time.

1. Check your rates

Our recent survey* showed that more than four out of ten people don’t know what rate they’re getting on their savings. If you’re getting a poor rate, you don’t need to settle for it.

The average instant access rate is 0.06%, but big banks and NS&I pay just 0.01% on some of their most popular instant access accounts.

There are much better rates available. You can get 50 times more on an easy access savings product through our service, Active Savings. On a savings pot of £10,000 that’s £49 more than the big banks after just a year.

Instant access accounts from high street banks typically let you withdraw your money instantly. With Active Savings, withdrawals from easy access products usually take up to one working day.

Another reason to check your rate is for short-term bonuses. If you find your rate is about to disappear, get ready to move your money to a better account.

2. Sign up for rate alerts

Some providers will take the hassle out of searching for great rates by letting you know when they’re available.

Sign up to our alerts and we’ll let you know as soon as great rates are added to Active Savings.

SIGN UP TO ALERTS

3. Get your savings in a fix

For money you don’t need to access immediately, but don’t want to invest for the long term, fixed-term savings products could be the answer to improving your returns.

They usually pay better rates than instant or easy access accounts, but in return you can’t usually access your money until the term ends.

You can normally fix for anything from three months up to five years, and the longer you fix for, the higher the interest rate usually is. For example, you can currently get as much as 0.91% AER/Gross** on a one-year fix through Active Savings.

4. Make the most of your personal savings allowance

Introduced in April 2016, the personal savings allowance (PSA) lets lots of people earn up to £1,000 of interest every tax year before they pay any tax.

The PSA drops to £500 for higher-rate taxpayers and additional-rate taxpayers don’t get a PSA at all. Nonetheless the PSA means that lots of savers don’t have to worry about paying any tax on their savings interest.

Remember if you’re married or in a civil partnership, you could split your savings with your spouse to effectively have a combined PSA of up to £2,000.

The PSA is calculated using UK, not Scottish, income tax bands. Tax rules can change and benefits depend on personal circumstances.

5. Become a savvy saver by blending different savings products

Think about using both easy access and fixed-term products to boost your returns. You should keep your emergency fund in an instant or easy access account so you can get your hands on it if you need to. But for anything else you can look at using fixed terms of different lengths depending on when you need access to it.

You’ll probably get a much better rate overall, and can time your cash to come back to you when you need it.

FIND OUT MORE ABOUT SAVINGS STRATEGIES


Make more of your cash with Active Savings

If you’re looking to get your cash working harder, Active Savings could help.

Pick and mix easy access and fixed term savings products from a range of different banks and building societies, all through the convenience of one online account.

And once you’re set up you can move your money around with just a few clicks. There are no forms, no paperwork and no hidden surprises. Just simple, fair saving so you always know what rates you’re getting.


The best rates on Active Savings

Easy access

Up to
0.50% | 0.50%
(AER | Gross)

Up to 1 year

Up to
1.33% | 1.33%
(AER | Gross)

Up to 2 years

Up to
1.55% | 1.55%
(AER | Gross)

Up to 3 years

Up to
1.65% | 1.65%
(AER | Gross)

Easy access

Up to
0.50% | 0.50%
(AER | Gross)

Up to 1 year

Up to
1.33% | 1.33%
(AER | Gross)

Up to 3 years

Up to
1.65% | 1.65%
(AER | Gross)

Find out more

Please note the products above are some of our most popular, but more are available. Click the link above to see our full range. Products can be added or withdrawn at any time. Minimum deposit requirements apply to individual products. Easy access products pay a variable rate and fixed term products pay a fixed rate.

AER (Annual Equivalent Rate) shows what the interest rate/expected profit rate would be if it was paid and compounded once each year. It helps you compare the rates on different savings products. Once you have opened a fixed term product the rate won't change, but rates on easy access products can vary.

Gross means the rate without any tax removed. Interest/profits are paid gross. You are responsible for paying any tax due on interest/profits that exceed your Personal Savings Allowance to HM Revenue & Customs. Tax treatment can change.


Get an extra boost of £10 - £100 cashback as a thank you

Open an Active Savings account by 28 July, then add at least £10,000 by debit card and choose your savings product(s) within 60 days of opening your account to qualify for cashback. If your balance drops below your cash offer qualifying amount within 6 months, we may reclaim your cashback. Full terms are below.

You pay in Your cashback
£10,000 - £19,999 £10
£20,000 - £29,999 £20
£30,000 - £49,999 £30
£50,000 - £79,999 £50
£80,000 or more £100

Discover Active Savings

*HL survey September 2020, 1461 respondents

**AER (Annual Equivalent Rate) – AER shows what the interest rate/expected profit rate would be if it was paid and compounded once each year. It helps you compare the rates on different savings products.

Gross – the interest rate without any tax removed. Interest/profits are paid gross. You are responsible for paying any tax due on interest/profits that exceed your Personal Savings Allowance to HM Revenue & Customs. Tax treatment can change.

Expected profit rate (EPR) – Islamic banks offer an expected profit rate rather than interest on their savings products in order to comply with Sharia banking principles.

Active Savings Cash Back Offer – what you need to know

1. This offer is available to anyone who opens a new Active Savings account between 23 June 2021 and 28 July 2021 inclusive (“the Offer Period”).

2. To qualify for the offer, you’ll need to fund your new account, with at least £10,000 by debit card, and to subsequently use this money to instruct us to add at least £10,000 to one or more savings products within that account. Both of these actions must be taken within 60 days of the opening of the account to qualify (“the Qualifying Period”). For the avoidance of doubt you can open an account with as little as £1 and still qualify for the offer, provided that your account is topped up to a balance of at least £10,000 and you use this money to instruct us to add at least £10,000 to one or more savings products. Both of these actions must be taken within 60 days of opening the account in order to qualify.

3. If you open an account within the Offer Period and also satisfy the criteria listed in clause 2, we will credit the cash hub in your account with a cash amount between £10 and £100, depending on the amount you add to one or more savings products. We will credit the cash amount within one month after your Qualifying Period. We’ll notify you by email once the cash amount has been added.

4. The value of the cash reward will be based on the total amount added to savings products within 60 days of the opening of the account. The value of the cash reward will also only be based on the amount added to your account by debit card during the Offer Period. The value of the cash reward will not be based upon any amounts added to savings products using cash held in a Fund & Share account.

5. The cash reward shall be determined in accordance with the tiers identified in the table accompanying these terms and conditions.

6. It is not possible to combine the value of saving products chosen in accounts with different client numbers for the purpose of this offer. The maximum amount of cash you can receive under this offer is £100.

7. We reserve the right to reclaim the cash reward if the overall balance of your Active Savings Account drops below your cash offer qualifying amount within 6 months of the date of the qualifying deposit. We will notify you if we intend to reclaim the cash reward, and will claim it within 7 working days.

8. We reserve the right to amend, extend or withdraw this offer if necessary, including for legal or regulatory reasons or otherwise. If the offer closes early, all qualifying applications received up until this time will still be accepted. Details of any such amendment, extension or withdrawal will be posted on our website at www.hl.co.uk/savings.

9. This offer is not available to anyone who already has an Active Savings account.

10. You must not be an employee of any Hargreaves Lansdown Group company or a member of any such employee’s immediate family or household.

11. This offer is limited to one payment of up to £100 per client.

12. This offer will be governed by English law and, in participating, you submit to the jurisdiction of the English courts.

13. References in these terms and conditions to “Hargreaves Lansdown”, “our”, “us” or “we” are to Hargreaves Lansdown Savings Limited (company number 08355960), authorised and regulated by the Financial Conduct Authority (FCA Register number 915119), whose registered office is at 1 College Square South, Anchor Road, Bristol, BS1 5HL. References to the “Hargreaves Lansdown Group” are to Hargreaves Lansdown plc (company number 02122142) and its subsidiaries from time to time.

The Active Savings service is provided by Hargreaves Lansdown Savings Limited (company number 8355960). 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.



What did you think of this article?

Important notes

This article isn’t personal advice. If you’re not sure whether an investment is right for you please seek advice. If you choose to invest the value of your investment will rise and fall, so you could get back less than you put in.

Editor's choice – our weekly email

Sign up to receive the week's top investment stories from Hargreaves Lansdown. Including:

  • Latest comment on economies and markets
  • Expert investment research
  • Financial planning tips
Sign up

Related articles

Category: Investing and saving

Goldilocks and inflation – the lessons for investors

We explain how central banks try to get inflation just right and what this could mean for investors.

Susannah Streeter

26 Oct 2021 5 min read

Category: Investing and saving

Investing as a student – how I’m making the most of my inheritance and savings

HL client Felicity, shares her story into investing and how she made more from her savings and inheritance by using a Lifetime ISA.

Edie Bond

25 Oct 2021 5 min read

Category: Shares

The bull and the bear part three – breaking down our clients’ top share holdings

We take a look at both sides of the coin for some of our top client holdings.

Sophie Lund-Yates

21 Oct 2021 5 min read

Category: Shares

What moves share prices? Here’s what to look for in a company’s results

We take you through what matters on a results day.

Nicholas Hyett

20 Oct 2021 4 min read