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Interest rates on the rise. But you could still get five times more on your savings

The average easy access rate at the end of April was 0.21%. Here’s how to get at least five times more with Active 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.

The top savings rates are on the rise. That should be good news for savers. But for most of us, it won’t make any difference.

Lots of us have our savings with the big high street banks. And they’re using our loyalty and lack of action against us. Many people don’t switch, so the banks have little motivation to give better rates.

And the amount it’s costing us is shocking.

In February, the average rate offered by banking giants as 0.02%, compared to the average top ten rate at 0.67%.

For the average household, that sort of difference in rate could amount to more than £2,000 over ten years, based on a savings pot of £30,000. That’s a significant amount, especially when we have to contend with inflation also reducing the spending power of our money.

Things have moved on since February. The Bank of England has increased interest rates, and some of the high street banks are slowly passing these rises onto customers. But it’s happening very slowly.

The market average for easy access savings at the time of writing was still 0.21%.

With Active Savings, you could get over five times as much on easy-access savings.

The instant access products you get with your bank offer immediate cash withdrawals. Active Savings offers easy access products where withdrawals usually take one working day.

You could also get even more by using fixed-term products. These often pay a better rate than easy access products, but you can’t usually get your money back until the term ends.

See our latest rates

Get a better savings rate

It’s time to get a better rate on your savings.

Active Savings gives you the tools to take back control of your savings.

You can pick and mix from easy-access and fixed-term savings products from different banks and building societies, with one online account. You’ll get better rates and more choice than a typical high street bank.

Picking and switching savings rates is simple and can be done in a handful of clicks. And you’ll see everything in one place, so it’s easy to manage.

Fixed-term products pay a fixed rate of the whole term, but you can't usually withdraw your money until the term has ended. With limited access products you can withdraw your money when you like, but only a certain number of times a year without incurring a charge.

The best rates on Active Savings

Easy access

Up to
1.11% | 1.10%
(AER | Gross)

Avg. market rate
0.25%

1 year

Up to
2.65% | 2.65%
(AER | Gross)

Avg. market rate
0.89%

2 years

Up to
3.00% | 3.00%
(AER | Gross)

Avg. market rate
1.61%

3 years

Up to
2.95% | 2.95%
(AER | Gross)

Avg. market rate
1.83%

Easy access

Up to
1.11% | 1.10%
(AER | Gross)

Avg. market rate
0.25%

1 year

Up to
2.65% | 2.65%
(AER | Gross)

Avg. market rate
0.89%

3 years

Up to
2.95% | 2.95%
(AER | Gross)

Avg. market rate
1.83%

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.

Source: Bank of England 31 May 2022. Comparisons with average market rates for easy access products are based on instant access products, which allow immediate withdrawals. Active Savings offers easy access products and withdrawals usually take one working day.

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 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.

Cashback

Get £20-£100 cashback

Open an Active Savings Account by 30 June 2022, then add at least £10,000 by debit card and choose your savings product within 60 days to qualify for cashback. If your balance drops below your cash offer qualifying amount within six months we may reclaim your cashback. Terms apply.

You pay in Your cashback
£10,000 - £19,999 £20
£20,000 - £29,999 £30
£30,000 - £49,999 £40
£50,000 - £79,999 £50
£80,000 or more £100

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 and regulated by the Financial Conduct Authority (firm reference number 915119). 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.

Hargreaves Lansdown Asset Management Limited and Hargreaves Lansdown Savings Limited are subsidiaries of Hargreaves Lansdown plc (company number 2122142).

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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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