Cash ISA
FAQs

Opening an account

• What do I need to open an account?

  • Your National Insurance number. You can find this on your National Insurance card, a benefit letter, payslip or P60.
  • Your debit card details to deposit money into your Cash ISA if you want to start saving straight away.
  • Your sort code and account number for the account you’d like to withdraw money into.

• Can I open a Cash ISA without choosing a product?

  Yes. You don’t need to add any money or choose a savings product to open a Cash ISA. Once you have opened an account you’ll have access to our full range of savings products, including any private offers which are only shown to Cash ISA clients (when they are available).

  You can find the latest rates online.

• What is the minimum amount I can open a Cash ISA with?

  You don’t need to add any money to open a Cash ISA. When you choose a savings product they may have a minimum amount that you need to open the product with – full information will be provided in the summary box before you open the product.

• How do I open a savings product?

  You can open a new savings product at any time by logging into your HL Account and then selecting the ‘open a savings product’ tab in your Cash ISA. You will be presented with a list of all available products to choose from. By selecting the ‘details & apply’ button you can view the key information for each product and then apply if you wish to do so.

• Who is eligible to open an account?

  You can open an account if you are an individual over 18 years of age, living in the UK and a UK resident for tax purposes.

  This account can only be opened in a sole name.

• Is this a flexible ISA?

  Our Cash ISA is designed to give you more freedom than a typical Cash ISA, but it’s not a ‘flexible ISA’. Any money you withdraw from the HL Cash ISA will lose its ISA status and you won’t be able to replace it without using more of your ISA allowance.

• How many Cash ISAs can I have?

  You can pay into as many Cash ISAs as you wish, as long as you don’t add more than the ISA allowance for the tax year. The HL Cash ISA allows you to split your money across a range of easy access, limited access and fixed term products in the same tax year all in a single Cash ISA.

• Why is two factor authentication required?

  Strong customer authentication (SCA) is a requirement of the EU Revised Directive on Payment Services (PSD2) on payment service providers such as Hargreaves Lansdown.

  The PSD2 regulation introduces strict security requirements for the initiation of electronic payments in order to reduce the risk of fraud. These requirements include strong customer authentication, which is an authentication process that validates the identity of the user of a payment service or a payment transaction.

  One of the measures to achieve this is the requirement in Article 97 PSD2 (regulation 100, Payment Services Regulations 2017 (PSRs 2017)), which mandates the application of strong customer authentication (SCA).

• What is strong customer authentication?

  SCA means an authentication based on the use of two or more elements categorised as:

  The three form factors for authentication are:

  • Knowledge - Something you know. An example of this is a password.
  • Possession - Something you have. Examples of this are: a one-time code generated by a security token or access through a trusted device by SMS or text message.
  • Inherence - Something that you are and is unique to you. An example of this is a voice or finger print.

  Currently, PDS2 regulation will be enforced in the UK.

  As the Active Savings Account falls under PSD2 regulation, as such 2 factor authentication will be applied to account holders.

  In addition to strong customer authentication, a part of this regulation stipulates a 5 minute timeout period after inactivity, which cannot be changed.

Moving money

• How do I add money to the Cash ISA?

  You can top up your HL Cash ISA using your debit card, or from your HL Active Savings cash hub.

  You can also add money to your HL Cash ISA by transferring this from your HL Stocks and Shares ISA. How to transfer cash from a Stocks and Shares ISA to the HL Cash ISA.

• How do I withdraw from the HL Cash ISA?

  Easy access or limited access products

  To withdraw please login into your account and select 'Withdraw' to the right hand side of your savings product.

  You’ll then be asked whether you want to withdraw to your nominated bank account, or the Active Savings cash hub. And how much you wish to withdraw.

  Withdrawals usually take one working day. Withdrawn money goes via a transaction account at Barclays.

  Please note this is not a ‘flexible ISA’. You won’t be able to replace any money you withdraw without using more of your ISA allowance.

  Fixed term products

  You cannot usually withdraw from a fixed term product until the term ends. When your product approaches maturity we will contact you with more information about the options available.

  If you wish to withdraw from a fixed term product during the term, you need to contact our helpdesk.

  0117 314 6219
  Monday to Friday: 08:00 to 17:00
  Saturday: 09:30 to 12:30

  There may be charges from the product provider – these are outlined in the product summary box.

• Can I transfer money from other HL Accounts to my Cash ISA?

  You can transfer available money held within your own Cash ISA. You can do so by opening a new savings product or adding to an existing easy access/limited access product. Within the application, you will be asked where you wish to add the money from, and you can select the Active Savings cash hub.

  You can transfer money from an HL Stocks and Shares ISA to your HL Cash ISA by selecting the ‘Move Money’ tab in your Cash ISA. Money must be settled in the HL Stocks and Shares ISA before you conduct the transfer.

  Before you can move money, the Cash ISA must already be opened with a default savings product set up.

  To set up a default savings product, this may require you opening one if you do not have one already, which may contribute to using your current ISA allowance.

• How long does it take for payments to clear into/from my Cash ISA?

  You can add money to or withdraw money from the Cash ISA at any time. Below we provide a brief summary of how long it generally takes various payment types to clear.

  • Debit card payments – one working day to clear into the Cash ISA.
  • Cash transfers from a Cash ISA - this should clear within 1 working day if the payment is settled in the Active Savings cash hub.
  • Cash transfers to/from the Stocks and Shares ISA – one working day.
  • Withdrawals – typically the working day after any cleared funds have settled.

• Is there a limit on how much I can withdraw from my Cash ISA each day?

  Withdrawals to your nominated bank account cannot exceed the daily withdrawal limit of £100,000. If you want to withdraw more, please contact our helpdesk.

  Withdrawals to your Cash ISA have no limits.

Your Account

• Can I close my Cash ISA?

  Yes, you can close your HL Cash ISA at any time. When you close your Cash ISA there may be charges where your ISA contains fixed term products or if you've exceeded the withdrawals limit from limited access products. The product summary box will outline any charges that apply.

• Do I pay any charges?

  We don’t charge you directly, instead we charge our banking partners. This means the same or similar products offered directly by the banks and building societies may have different interest rates to those available on the HL Cash ISA.

• Can I have a Cash ISA and a Stocks and Shares ISA?

  Yes. You're free to split your ISA allowance any way you like across a Cash ISA, Stocks and Shares ISA, Lifetime ISA (maximum of £4,000) and an Innovative Finance ISA - as long as you stay within the overall £20,000 limit.

• How is the interest I receive taxed?

  The Cash ISA is a tax efficient wrapper, meaning any interest earned within the Cash ISA is not liable for UK income tax.

• Is there a limit to the number of products I can have within my Cash ISA?

  No, you can open as many products as you wish.

• What is the minimum amount I can open an HL Cash ISA with?

  You don’t need to add any money to open a Cash ISA. When you choose a savings product they may have a minimum amount that you need to open the product with – full information will be provided in the summary box before you open the product.

• What type of savings products can I access through the Cash ISA?

  You can typically choose from easy access, limited access and fixed term savings. Fixed terms usually range from 1 month up to 5 years. The products available will regularly change, depending on what our banking partners are offering at the time. This means that not all products will be available all the time.

• What happens to my savings if I die?

  Your savings remain in your Cash ISA until we receive instructions from your executor. Executors should contact our helpdesk for more information.

• Can I manage my account through the mobile app?

  You can manage your Cash ISA online through the HL website.

• How are my savings products held?

  Your savings will be held with the bank and/or building society under either a direct model, or a pooled model. The majority of our banks are under the pooled model.

  Banks and/or building societies that fall under the direct model will be shown as part of your application.

• What is the cooling off period for the HL Cash ISA?

  The cooling off period is 14 calendar days from the date of your first ever subscription into the HL Cash ISA.

  To cancel your Cash ISA, you must write to us either online by secure message or by post within 14 days of your first subscription.

  You must ensure you have a nominated bank account set up so the funds can be withdrawn to you. To add or check the details, select the ‘Account Settings’ tab on your online account.

  The cash within the HL Cash ISA will be paid to your nominated bank account (plus any accrued interest).

  Your ISA subscriptions will then be cancelled and reinstated.

  If the 14 day cooling off period has lapsed, you will no longer be able to cancel your HL Cash ISA. You are able to close your Cash ISA (usually with a charge), or transfer your HL Cash ISA to another ISA provider (charges may apply).

Fixed Terms

• What happens when my fixed term savings end?

  The maturity payment will be swept in to your default savings product, if you have one selected.

  If you do not have a default savings product, or you have exceeded the maximum product balance, we will open an easy access product held with the same maturity bank and sweep the money there.

• Can I add more money to a fixed term once it’s started?

  No, you cannot add more money to your fixed term product after the application date.

  The application date is when the product will be removed from the website. The product could be removed from the website before then, if the capacity fills up, or the provider decides to pull the product for any other reason.

  The application date can be found in the product’s important information on our latest rates page, or in the product summary box when you're logged in to your account.

  You can however select a different Cash ISA product to invest into.

• Can I add more money to a fixed rate before the apply by date?

  There may be occasions where this is possible however it is not always guaranteed, please contact our Helpdesk for more information.

• What if I change my mind about adding money to a fixed term product?

  We may be able to cancel the fixed term product, if it is before the start date. Please contact our Helpdesk for more information. Once the application deadline has passed you can no longer cancel your instruction.

• When will money from my fixed term rate be paid?

  Your original deposit is paid back to your Cash ISA, at maturity. Interest will be paid to you at maturity (this includes products which compound interest into the fixed rate product).

  If your product pays interest annually, the interest is compounded in the fixed rate product.

• What happens if my fixed term matures on a non working day?

  The money will be paid to your Cash ISA the next working day.

• What is meant by apply by date and start date?

  The apply-by date is your deadline for choosing your savings product.

  The start date is when your money is sent to our banking partner and will start earning interest.

Easy Access

• Will my easy access product be closed if I withdraw all savings?

  No, it will remain open and you can add more money later without reapplying.

  If you wish to have this closed, please contact our Helpdesk.

• Can my interest rate change?

  If the rate on your savings product is variable, then it can go up or down at any time. For more information you can see the Terms and Conditions within the summary box before opening the product. If your rate decreases, you will be given two weeks’ notice.

  If the rate increases, you will be informed 30 days from the date of the change.

  If the rate on your savings product is fixed, then it will stay the same until the product matures.

• Why has my easy access rate not changed? But another easy access rate on the platform has changed?

  The banking partner may offer multiple easy-access products. Sometimes, those products may have the same rate. The banking partner can decide to change the rate on one of those products, but not another.

  To switch to a different rate, you’ll need to withdraw from your current easy access, and pay into the new easy access.

Interest

• When will I receive any interest?

  How interest will be paid varies by product.

  For easy access savings interest accrues daily and is typically paid on the first working day of the month. Any interest received accrues within the product.

  Interest will be paid to you at maturity (this includes products which compound interest into the fixed rate product).

  If your product pays interest annually, the interest is compounded in the fixed rate product.

  Please note that some products calculate interest up to and including the maturity date. This means your money will earn an extra day of interest, but it will be returned to the HL Cash ISA on the next working day following maturity.

• Will I continue to earn interest over non working days?

  This depends on which bank is providing your savings product. To find out whether the bank offers interest over non-working days, please contact our helpdesk.

Tax

• What tax information will be provided?

  As a Cash ISA is a tax wrapper, no information will be provided on how much interest is paid at the end of the tax year.

• How is the interest I receive taxed?

  All interest is paid gross i.e. without any UK tax deductions.

FSCS

• How are my savings protected?

  We’re authorised by the Financial Conduct Authority (FCA) but we’re not a bank. This means that in different scenarios your money is protected in different ways.

  How your money in a savings product is protected:
  When your money is in a savings product through your Cash ISA, it’s held by that bank or building society.

  If the bank or building society providing the savings product fails:
  If the bank or building society were to fail, the FSCS will protect your money up to £85,000 per banking licence.

  When using the Cash ISA, it may take longer to receive your money from the FSCS than if you saved directly with the bank or building society. But as a guide, the FSCS aim to make all payments back to savers within three months.

  If HL Savings Ltd fails:
  As your money is held by the bank or building society who provides the product, it will not be affected if we go out of business and will still be covered by the FSCS. But it may take longer to get back than if it was saved directly with the bank or building society.

  How your money in the Cash ISA transactions account is protected:
  Any money you pay into your Cash ISA goes into a transaction account whilst it's pending to go into or out of a savings product.

  If HL Savings Ltd fails:

  In the unlikely event that we (HL Savings Ltd) fail, your money in the transactions account is not covered by the FSCS. Instead, it’s protected through the FCA’s safeguarding rules.

  Money in the transaction account is kept separately from our own company money in a safeguarded account with an approved bank (currently Barclays Bank Plc) that creditors can’t access.

  There’s no limit to the amount protected through safeguarding, but some costs could be taken by the administrator or liquidator if we were to fail. This could impact the amount that you receive, and it could take longer to get your money back than if it were held directly with a bank.

  If the transaction account provider fails:
  If Barclays were to fail, the FSCS will protect up to £85,000 of your eligible deposits in the cash hub, but it may take longer to get your money back than if it were held directly with Barclays. If you hold money with Barclays outside of the Cash ISA as well, either directly or through other providers, this may also fall under the same £85,000 limit.

Cash ISA transfers

• How can I transfer a Cash ISA outside of HL to the HL Cash ISA?

  You cannot currently transfer an ISA from another provider directly to your Cash ISA. You must first transfer your ISA to the HL Stocks and Shares ISA. Once that's complete, you can move the money to your Cash ISA.

  You will need to ensure you have an easy access product already open and set up as your default savings product.

  If you do not already have an easy access product open, you’ll need to open this with £1, which will contribute towards your current tax year ISA allowance.

• How can I transfer my HL Stocks and Shares ISA to the HL Cash ISA?

  You can move money from a Stocks and Shares ISA into any easy access or limited access savings product in your Cash ISA. Your money will keep its tax-free status.

  You will need to ensure you have an easy access product already open and set up as your default savings product.

  If you do not already have an easy access product open, you’ll need to open this with £1, which will contribute towards your current tax year ISA allowance.

• How do I set up a default savings product?

  Once you have opened your easy access product, you will be asked whether you wish for this product to be set up as your default.

  Alternatively, you can select the ‘default savings product’ tab to choose from your available easy access.

• What information do I need to transfer my Cash ISA to another provider?

  You will only need your client number. Your Cash ISA does not have an account number or sort code.