Hargreaves Lansdown (HL) data shows a 35% year-on-year increase in clients holding money market funds (MMFs), with record retail inflows into MMFs of £6.9bn in 20251.
The HL Money Market Fund, available only through the HL platform, targets a market-leading return, with the lowest ongoing charge in the retail market (0.06%) and same-day settlement.
The latest launch in HL’s distinctive range of investment and savings products built around client needs.
The fund targets a market-leading yield (3.95% expected at launch) while offering daily access for same day reinvestment and next day for withdrawals.
With more than £600bn of excess cash held in the UK2 and the four biggest banks paying an average of just 0.95%3, it’s clear many savers could be making their cash work harder. Over the last year, HL has invested more than £100m in its products and services, building out a distinctive range of savings and investment options around client needs. The HL Money Market Fund gives clients a cash-like way to invest, sitting alongside Active Savings and the HL Cash ISA.
Doug Abbott, Chief Product Officer at Hargreaves Lansdown:
“More than 25 times as many HL clients invest in money market funds as they did five years ago, and they’re set to become even more popular once the new Cash ISA rules come into force next April.
“For anyone exploring options for their cash, the HL Money Market Fund offers a lower-risk way to start investing, with the flexibility of same-day access and a higher expected return than you’d get in an easy access account with one of the big banks.”
Despite increased demand, understanding of MMFs remains low. IA research found only 31% of Cash ISA holders have any knowledge of them, yet once given a clear explanation, 64% said they would consider investing in one. The HL Money Market Fund can be held across all investment accounts, so clients can keep money they may need soon readily available, alongside their longer-term money which can stay invested for growth.
About the HL Money Market Fund
HL is responsible for the overall management of the fund, with BNY Investments chosen as the delegated investment manager.
We expect the fund to give one of the highest yields on the market after fund charges. The expected yield is 3.95%.
Has the lowest ongoing charge of any MMF in the UK retail market, at 0.06% - 60p a year for every £1,000 invested.
Offers same-day settlement – clients can sell before 9.00am and have the money in their HL account the same day, ready to reinvest, or withdraw.
Available at a £1 fixed price during the offer period, from Wednesday 21 October until launch on Wednesday 4 November.
Clients who invest at launch receive their first income payment on 31 December 2026. Income is calculated daily and paid monthly.
Invests in short-term debt issued by governments, bank, and companies with strong credit ratings, and is generally considered low risk.
Available to HL clients in all investment accounts: Stocks and Shares ISA, Lifetime ISA, Junior ISA SIPP, SIPP Drawdown, Junior SIPP and Fund and Share Account.
Account charges and dealing charges apply.
What is an MMF?
An MMF is a cash-like investment that gives investors somewhere stable and accessible to keep money for shorter timeframes.
While it aims for a higher yield than cash savings, an MMF invests in short-term debt issued by governments, banks, and companies with strong credit ratings. Because these investments are spread across different organisations and held for short periods, MMFs are generally considered low risk.
Although an MMF is low risk, it is still an investment, meaning its value has the potential to rise or fall.
Who should consider investing in the HL Money Market Fund?
Case studies assume the fund achieves a net yield of 3.95% throughout, with income not reinvested, and net of the fund's 0.06% ongoing charge, HL's 0.35% annual platform charge and £1.95 dealing charges on the purchase and sale. The target yield isn't guaranteed and can change, and these examples are not forecasts.
Investors with a short-term cash need
Someone selling one investment and waiting for their next opportunity can put their cash to work while they decide where to invest next.
£10,000 invested would earn £23.64 after charges over a 28-day holding period.
SIPP client looking to take tax-free cash and move proceeds into Drawdown in three years
Someone looking to reduce risk in part of their portfolio ahead of accessing their pension.
£250,000 invested would earn £26,921.10 after charges over a three-year holding period.
New investor trying a small amount in a Stocks and Shares ISA
Someone investing for the first time and looking to retain a lower-risk profile while making their money work harder.
£3,000 invested would earn £103.80 after charges over the first year of holding.
Investor using a Cash ISA alongside a Stocks and Shares ISA
Someone with a lower-risk appetite and a need for a cash-like investment, who has already used their Cash ISA allowance (from April 2027).
£8,000 invested would earn £283.30 after charges over the first year of holding.
Anyone currently holding an MMF through HL
Someone already holding an MMF through HL, switching to the HL Money Market Fund for a better return.
Switching a £50,000 investment in the current most popular MMF on platform, the Royal London Short Term Money Market Fund (current yield 3.88%), to the HL Money Market Fund would earn an extra £26.10 after charges, over a one-year holding period.
Footnotes
Investment Association, monthly fund statistics (December 2025 data, published 5 February 2026). MMFs recorded £6.9bn of net retail inflows in 2025, the highest annual inflow on record for the sector.
Barclays, The UK investment gap: savers have an estimated £610bn in cash that could be invested (2025), based on the FCA's Financial Lives 2024 survey. The estimate covers around 15 million UK adults with more than £10,000 in savings who hold at least 75% of it in cash.
HL analysis of instant access rates across the UK's four biggest banks (Lloyds, Barclays, NatWest and HSBC), which averaged 0.95% as at 19 October 2026.
About HL
HL is the UK’s largest investment and savings platform for private investors and more than 2.2 million clients trust us with £205 billion (as of June 2026).
Our clients have access to 4,000 fund options, as well as 10,000 other investment choices across UK and overseas shares, ETFs, investment trusts, bonds and gilts. Investments can be held in a full suite of tax wrappers and alongside cash savings via HL Active Savings, the UK's largest retail cash savings platform.
We offer investors award-winning expert fund research, including information and education on Responsible Investment to help people invest in line with their values.
We also provide help choosing funds, including our Wealth Shortlist, a list of funds selected by our analysts to help investors build well-balanced and diversified portfolios, or invest in our ready-made Portfolio Funds and managed Portfolio Building Blocks.
Find out more about HL and our history, what it’s like to work with us, and how we support our local community.
About BNY
BNY is a global financial services platforms company at the heart of the world's capital markets. For more than 240 years BNY has partnered alongside clients, using its expertise and platforms to help them operate more efficiently and accelerate growth. Today BNY serves over 90% of Fortune 100 companies and nearly all the top 100 banks globally. BNY supports governments in funding local projects and works with over 90% of the top 100 pension plans to safeguard investments for millions of individuals. As of September 30, 2026, BNY oversees $63.4 trillion in assets under custody and/or administration and $2.2 trillion in assets under management.
BNY is the corporate brand of The Bank of New York Mellon Corporation (NYSE: BNY). Headquartered in New York City, BNY has been named among Fortune's World's Most Admired Companies and Fast Company's Best Workplaces for Innovators. Additional information is available on www.bny.com. Follow on LinkedIn or visit the BNY Newsroom for the latest company news.
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