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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).

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.

Nearly half of us can’t be bothered to switch our savings at the moment because we think the rates available aren’t worth it, according to our recent survey. And six in ten aren’t planning to switch their savings at all.

That’s despite more than a third saying they have more savings now than before the coronavirus pandemic.

This inertia with their cash is estimated to be costing savers over £3.5bn in interest, based on the difference between the lowest and highest easy access rates if they stay the same for a year.

It’s only natural that while rates are dropping, people get less excited about the best rates in the market.

But this means people are likely to leave their cash sitting dormant, earning nothing. There’s over £200bn sat in accounts which pay no interest at all, a figure which has risen by 15% since the start of the year alone.

The majority of people keep their savings with the same bank they hold their current account with. But they’re paying a hefty price for this familiarity. Most high street banks pay a paltry 0.01% on instant access products. If you’ve got £10,000 in one of those you’ll get a measly £1 interest after a whole year.

Why are savers settling for poor rates?

Overwhelmingly we’re not switching because we don’t think it’s worth it when rates are so low.

Why savers aren't switching

Source: HL survey of 921 UK adults.

People are also be put off by the hassle of switching to a new provider. In most cases it’ll involve wading through application forms, proving who you are and setting up new security information every time.

Then there’s the added hassle of keeping track of your money. Sounds exhausting, doesn’t it?

Active Savings can help.

An easier way to boost your cash

With one online account you can pick and mix multiple savings products from a range of banks and building societies. You’ll get a selection of competitive rates and more choice than a typical high street bank. For example you can get up to 0.96% on a limited access product – far above what most high street banks are offering on their instant access products. On the same £10,000 pot, that’s £95 more after just a year. This product allows you to access your money when you like, up to twice a year without incurring a charge. Full product details are on our website.

Opening new products 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.

The best rates on Active Savings

Easy access

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

Up to 1 year

Up to
0.90% | 0.90%
(AER | Gross)

Up to 2 years

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

Up to 3 years

Up to
1.20% | 1.20%
(AER | Gross)

Easy access

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

Up to 1 year

Up to
0.90% | 0.90%
(AER | Gross)

Up to 3 years

Up to
1.20% | 1.20%
(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.

Easy and limited access pay a variable rate. Fixed term products pay a fixed rate. With fixed term savings 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. Instant access products allow immediate cash withdrawals, Active Savings offers easy access products where withdrawals usually take one working day. Inflation can reduce the spending power of money.

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

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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