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How spring cleaning your savings could pocket you £80 more

Saving with a high street bank? Here’s how you could get a better interest rate on your savings and qualify for cashback as a thank you at the same time.

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 most popular place to save is with our usual bank. That’s a natural choice as we usually trust them, and we can manage it alongside our current accounts.

But if you’re saving with one of the high street giants, you’re likely paying a heavy price for the convenience.

Many pay just 0.01% interest on their instant access accounts – that’s just £1 interest after a whole year on a savings pot of £10,000.

And it’s a similar story for fixed terms, too. High street banks can pay as little as 0.10% on a one-year fix.

But with Active Savings you can save with a variety of different banks and building societies offering a wide range of products in one online account often with market leading rates.

You can currently get up to 0.90% AER/Gross* on a one year fix, and access a market leading easy access product with a variable rate of 0.5%. That’s up to 50 times more than some of the high street banks. Based on the fixed term of 0.90% and a pot of £10,000, that’s £80 more than the lowest high street bank after just one year. Fixed terms generally only allow access to funds at maturity and easy access products allow access to your money after one working day.

This article like the Active Savings service is not personal advice. Please remember that inflation reduces the future spending power of cash.

Consider how you split your savings

The vast majority of our savings are sat in instant or easy access accounts. Given the amount of uncertainty we’ve faced with our finances recently, that’s understandable. We also need to keep some cash here to cover our emergency fund.

As a rule of thumb, we think you should keep at least three to six months’ worth of monthly expenditure in an easily accessible account if you’re working. If you’re retired, we think at least one to three years’ worth is sensible.

Read more on emergency cash

But you might not need to keep all your savings in these accounts. If you do, you’re paying a premium for the convenience, as they are likely to give the worst rates in return.

Fixed term accounts usually pay better rates for locking your money away for a set period of time if this is something that you can consider. You can choose from as little as a few months, or up to seven years if you’d prefer. Typically, the longer you fix for, the better the rate. But you don’t get much choice with high street banks. They usually offer one or two terms, and usually lasting a year or more.

If you think you’ll need access to some of your cash, you can spread your savings across multiple accounts of different lengths. For example, three-month, six-month, one-year and two-year fixes. That way you’ll have some money coming back to you at different intervals, while boosting your overall rate.

Fixed terms can also be used to time your money coming back to you at a particular point. For example, if you’re holding money back for a tax bill to pay in January, you could choose a six-month fix which would give you access to your money in time to pay the bill, while at the same time getting a better rate than leaving it in an easy or instant access account.

The problem is, you’ll likely need to go to lots of different banks to achieve this. Opening new accounts and managing your money across them all can be a hassle. It might not feel like it’s worth the effort.

Active Savings makes this easy.

Reinvent your savings, without the hassle

Active Savings can help you reinvent your cash. One online account lets you have lots of savings products from multiple banks and building societies. You can choose from easy access or fixed terms ranging from six months up to five years. You’ll also get access to a selection of great rates, including five market leading rates**.

**Rates were checked against Moneyfacts on 23 June 2020 at 09:36AM.

And you can get cashback. More details and the terms are below.

High street banks offer instant access products which provide immediate access to your money. The Active Savings service offers easy access products and withdrawals usually take one working day. Please remember that inflation reduces the future spending power of money.


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

*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.


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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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