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How much is apathy with your savings costing you?

Savers are paying a hefty price for the convenience of using their high-street bank. Here’s why and an easy way to get your cash working harder.

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.

It’s a challenging time to be a saver at the moment. Low interest rates mean that the rates high-street banks offer savers in turn aren’t as attractive as they were. The average according to the Bank of England is just 0.42%, including unconditional bonuses.

Compare that to the current rate of inflation, which is 1.5% as I write. It means the average high street account isn’t keeping your head above water, so your cash is losing value in the long term. But if you’re prepared to look past your existing bank you could get much better rates without too much effort.

Instant Access Savings rates

Provider Rates (AER/Gross*)
Barclays 0.25%
HSBC 0.15%
Lloyds 0.20%
NatWest 0.20%
RBS 0.20%
Santander 0.35%

Based on saving £10,000 – correct as at 4 Nov 2019

Yet despite this, many savers prefer the convenience of saving with their main bank. 45% save with the same bank they use for their current account, and when choosing new savings accounts, 40% will go to their usual bank. In fact many savers seem prepared to put up with the cost for a while longer, with 63% saying they’re not planning to switch their savings.

Take the hassle out of earning great rates

We understand. It’s hard to chase the best rates, especially when it means opening accounts with multiple providers. Application form after application form, plus having to prove your identity with each provider - it’s a hassle.

But there is an easier way. Active Savings lets you pick and mix easy access and fixed rate savings products from a range of banking partners. And the best thing is it’s all from one account with one login.

You can move your money between providers with just a few clicks and no paperwork, so it’s easy to make sure you’re always getting good rates on your cash. You’ll find some great easy access rates to choose from, up to 1.20% (AER/Gross*).

On a savings pot of £10,000, that’s £78 a year more than if you left it sitting idly by in the average high-street account. Please note that savings products available through Active Savings can change on a regular basis and can be withdrawn at any time.

Consider fixed term savings for even better rates

If you don’t need immediate access to all of your savings, you could consider putting some in fixed term savings. You usually won’t have access to your money until the maturity date, but you normally get a much better rate than easy access accounts. You don’t have to fix for long to get your money working hard – you can typically fix from just three months up to five years – and generally the longer you fix for the better the rate.

Financial planners normally say that we should keep three to six months’ worth of expenses in easily accessible cash, but for anything over this you could use fixed terms to help boost your interest.

This article aims to help you make informed decisions but it isn’t personal advice. Rates quoted are correct as of 12 November and can be withdrawn at any time. If you’re not sure if a savings product is right for you, please seek advice. Remember inflation reduces the future spending power of cash.

Improve the way you save, forever

So why not stop paying a price for convenience and get your money working harder? You can start from as little as £1 and it only takes a few minutes to get going.

Discover active savings

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

Gross – means the interest rate without any tax deducted. Interest is paid gross. You are responsible for paying any tax due on interest that exceeds your Personal Savings Allowance to HM Revenue & Customs.

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

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 by the Financial Conduct Authority under the Payment Services Regulations 2017 with firm reference 751996 for the provision of payment services. Hargreaves Lansdown Asset Management Limited and Hargreaves Lansdown Savings Limited are subsidiaries of Hargreaves Lansdown plc (company number 2122142).

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.

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