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Interest rates at record lows – how to get 30 times more from your cash savings

With the Bank of England (BoE) keeping interest rates on hold at 0.1%, we look at how you could get a better interest rate on your cash savings.

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.

Interest rates have fallen dramatically this year and savings rates are now at record lows.

Lots of our savings are in immediate access accounts. And here lies part of the problem.

The most popular destination when we choose savings products is our usual bank. But big high street banks and National Savings and Investments (NS&I) pay 0.01% on their most popular instant access savings accounts. That’s just £1 interest on a savings pot of £10,000 after a whole year.

Is your bank paying 0.01%?

But by spending a small amount of your time now, you could substantially increase your returns in the future. Here’s how.

This article isn’t personal advice. If you’re unsure at all, please seek advice.

Are you paying to be loyal?

We often choose big high street banks as we trust them and feel our money is safe. But they know this, which is why they offer such low rates.

By looking further afield you could get a much better return. Smaller banks don’t benefit from having existing relationships with millions of customers –they need to offer better rates to bring money in.

And as long as they’re authorised by the Financial Conduct Authority and Prudential Regulation Authority, up to £85,000 of eligible deposits will be covered under the Financial Services Compensation Scheme (FSCS).

The savings market is changing rapidly which can make chasing the best rates very time-consuming. Applying for savings products with new providers often means filling out new application forms, providing identity documents and remembering new sets of security information.

When rates are low, it can feel like it’s not worth the hassle.

Boost your cash savings without the hassle

Our Active Savings service could help.

One online account gives you access to competitive rates from lots of banks and building societies without the hassle of constantly switching providers.

You can currently get up to 30 times more on easy access products than the big high street banks. That’s £29 more on the same £10,000 savings pot after just one year.

Instant access products allow immediate withdrawals. Our Active Savings service offers easy access products and withdrawals usually take one working day.

You could get even more by using fixed-term products. They often pay a better rate than easy access products, but you can’t usually get your money back until the term ends. You’ll find a range of fixed-term products through Active Savings, from one-year up to three-years.

Our partner banks often offer short-term products too – usually three and six month fixes. You don’t get that level of choice with a typical bank.

Choosing products with new banks and building societies through Active Savings is easy. Getting set up only takes a few clicks. No paperwork. No hassle. And it’s easy to manage, with everything in one place. You’ll see it alongside your other HL investment accounts when you log in.

Remember that inflation can reduce the spending power of money. Easy access products pay a variable rate and fixed term products pay a fixed rate.


The best rates on Active Savings

Easy access

Up to
0.30% | 0.30%
(AER | Gross)

Up to 1 year

Up to
0.55% | 0.55%
(AER | Gross)

Up to 2 years

Up to
0.65% | 0.65%
(AER | Gross)

Up to 3 years

Up to
0.80% | 0.80%
(AER | Gross)

Easy access

Up to
0.30% | 0.30%
(AER | Gross)

Up to 1 year

Up to
0.55% | 0.55%
(AER | Gross)

Up to 3 years

Up to
0.80% | 0.80%
(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.

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.

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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