Coronavirus - we're here to help
From how to access your account online, scam awareness, your wellbeing and our community we're here to help.

Skip to main content
  • Register
  • Help
  • Contact us
  • Log in to HL Account

Lockdown savings? How to use them to take control of your financial future

Lockdown turned some of us into savers. We look at how saving and investing could help you use that money wisely and set you up for a brighter financial future.

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.

Life since the pandemic began has been testing for many aspects of our lives. But a recent survey shows that three quarters of us managed to save money. And over a third say they now have more in savings accounts than before the crisis.

In fact, figures from the Bank of England show that we’ve saved over £81bn since March.

Increase in household savings (£bn)

Source: Bank of England August 2020

But while it’s a good thing that we’re tucking our money away, lots of us aren’t putting it to good use. More than £200bn now sits in accounts which give no return at all. That’s doubled in just 10 years.

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

How to be savvy with your money

If this sounds familiar then a small amount of effort now could put you in control of your finances for years to come.

Your first port of call should be to pay down expensive debt. Things like credit cards which have a high interest rate.

Then you should look to build an emergency fund. Between three to six months’ worth of expenses is a good start, although you might want more depending on your circumstances. An emergency fund is there to cover unexpected costs like a broken boiler or car repairs. If you’re retired you should be looking at one to three years’ worth, as it could be more difficult to build your savings back up if you need to use them.

For anything more, you could think about saving or investing.

Helping you get more from your cash

If you want to keep your money as cash, Active Savings could help.

With one online account you can pick and mix savings products from a range of banks and building societies, giving you greater control and flexibility.

You’ll get a selection of competitive rates across easy access, limited access and fixed term savings products. And it’s easy to manage, by having everything in one place.

Most high street banks pay just 0.01% on instant access products. On a savings pot of £10,000, that’s just £1 interest after a whole year. And their fixed term products are uncompetitive too. With Active Savings you could be £54 better off in an easy access product and £80 better off in a 1 year fix, based on the same £10,000 pot. And you can even get cashback on the money you save.

Instant access products allow immediate cash withdrawals, Active Savings offers easy access products where withdrawals usually take one working day.

The best rates on Active Savings

Easy access

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

Up to 6 months

Up to
n/a
(AER | Gross)

Up to 1 year

Up to
1.00% | 1.00%
(AER | Gross)

Up to 3 years

Up to
1.40% | 1.40%
(AER | Gross)

Easy access

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

Up to 6 months

Up to
n/a
(AER | Gross)

Up to 1 year

Up to
1.00% | 1.00%
(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.

Get £10-£100 cashback on your savings

Open an Active Savings account by 2 December, then add at least £10,000 by debit card and choose your savings products within 60 days to qualify for cashback. If your balance drops below your cash offer qualifying amount within 6 months we might reclaim your cashback. Terms apply.

Find out more about active savings

Invest for long term returns

You could also consider investing. It gives the best opportunity for growth over the long term. But unlike the security offered by cash, investments can fall as well as rise in value so you could get back less than you invest.

Saving is generally better if you need the money within five years. Investing could be better when you don’t expect to need the money within five years and are willing to accept a level of risk.

If you want to invest, you can learn about the basic principles or start by comparing our investment accounts.

For help with investment ideas, why not start with our Wealth Shortlist – a group of funds selected by our analysts for their long-term performance potential.

If you already have investments or Cash ISAs elsewhere, you could get cashback if you transfer to us. If you’re thinking about transferring, please check you won't lose valuable guarantees or benefits or have to pay excessive exit fees.

Get cashback on investments, pensions and savings

Transfer your investments or pensions to HL, or open an Active Savings account, and you could qualify for cashback. You can even qualify for multiple cashback offers as long as you meet the criteria outlined in each set of terms. The more you transfer, the more you could receive. Terms apply.

Find out more

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

Gross means 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. Rates may be subject to change and depend on individual circumstances.

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.

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: Active Savings

Over £3.5bn could be missed in savings interest – how to avoid missing out

Are you one of the many getting a poor interest rate? Here’s how you could improve your returns, and get cashback too (terms apply).

Sarah Coles & Ryan Kenny

21 Oct 2020 min read

Category: Pensions

Quit your job to start your own business? Don’t leave your old workplace pension behind

Top tips for understanding your old workplace pensions, how to find them and your options for transferring.

Isabel McDougall

21 Oct 2020 5 min read

Category: Investing and saving

Are your investments diversified enough for the second wave?

Stock market turbulence around the corner? Here’s how you can help get ready to weather any potential stock market storms.

Hannah Duncan

19 Oct 2020 6 min read

Category: Investing and saving

Case study: stress-free tips for Inheritance Tax planning

HL financial adviser, Mufaddal Travadi, details the important things his client learnt when planning his mother’s estate and shares some tips to consider for Inheritance Tax planning.

Mufaddal Travadi, Financial Adviser

16 Oct 2020 5 min read