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Savers hit by BoE rate cut – how to get your pot working harder

We explore how cuts in the savings market are not just affecting new savers and look at an easy way to keep your cash earning a good return.

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.

At a time when lots of people will be shining a light on their finances, any cuts to savings rates are not welcome news.

The Bank of England’s (BoE) decision to cut the base rate to a historic low of 0.1% in March triggered a domino effect in the savings market with many providers announcing cuts to their interest rates.

The average instant access rate savers get is now just 0.29% and the average 1 year fix is down to 0.73%.

But this isn’t just affecting new savers. Some providers have passed on a bigger cut to loyal savers than the BoE rate drop. Even some accounts where providers are meant to reward savers the longer they’ve been with them are included.

The worst instant access accounts are down to just 0.01% now, for existing customers too. That’s just £1 interest on a £10,000 savings pot after one year.

Now could be a good time to look at your savings and see how you’ve been affected. There are still good deals out there, but you’ll probably have to look past your current provider.

Save time, potentially earn better returns

Finding and securing great rates on your savings might seem like a chore.

To begin with you’ve got to hunt out the best deal, then go through the effort of applying to different providers. This usually means a lot of paperwork, new security information and having to prove who you are every time.

But Active Savings can help.

Active Savings lets you pick and mix easy access and fixed term savings products from a range of banks and building societies, all through one online account. It cuts out the hassle involved when opening and managing savings products with multiple providers once you have an Active Savings account.

There’s competitive and market-leading rates on offer, up to 1.45% (AER/Gross)* on a 1 year fix.

Once you’re set up with Active Savings you don’t have to fill in any further application forms when you want to select new products. And it’s easy to manage, allowing you to see all your savings alongside your other Hargreaves Lansdown investments within your online account

Discover Active Savings

This article isn't personal advice, but it could help you make your own decisions. Remember inflation reduces the future spending power of money.

Products available through Active Savings can be added or withdrawn at any time. Minimum deposit requirements apply to individual products. Instant access products allow immediate cash withdrawals, Active Savings offer easy access products where withdrawals usually take one working day.

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

Gross means the interest rate without any tax deducted. Interest is paid gross. You’re responsible for paying any tax due on interest that exceeds your Personal Savings Allowance to HM Revenue & Customs. Tax treatment can change.

Islamic banks offer an expected profit rate (EPR), rather than interest on their savings products, in order to comply with Sharia banking principles.

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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