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  • Rise of Savings Platforms

    Arguably one of the best kept secrets in the world of savings – the savings platform.

    Important information

    This article gives you information to help you make the most of your money, but it isn’t personal advice. If you’re not sure if a certain action is right for you, please ask for advice.

    Last Updated: 12 September 2023

    Important information - 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.

    Also known as cash deposit platforms, they’re becoming increasingly important tools for savers wanting to get the most from their cash savings. But of the estimated £2 trillion currently residing in savings deposits, only about 1% currently sits on savings platforms.

    Given how recently savings platforms have appeared, this is unsurprising. But as awareness of savings platforms and their benefits grows, the savings landscape looks set to change.

    What is a savings platform?

    Essentially, it’s a savings marketplace. An online shop for savers where they can access competitive rates from multiple selected banks and building societies, through a single online portal.

    The platform does the heavy lifting of providing a single place to view competitive rates and terms. So those with little time don’t have to open a new account every time they see a good rate.

    What do they offer?

    For savers wanting to get higher returns in exchange for locking their money away, savings platforms offer a wide range of fixed term products, sometimes from just a few months up to five years. And for those wanting access to their cash for rainy days and emergencies, they offer easy access products too. The beauty of it is you can see all your savings in one place. And you can easily move money from your easy access accounts to which ever fixed terms are appropriate for your needs, as opportunities arise, in just a few clicks.

    Who are they for?

    Essentially for all savers as some platforms allow you to start saving from just £1. However they come into their own if you are keen to earn good rates of interest without it consuming your life.

    The savings market is very dynamic with new rates being added and taken away all the time. Staying on top of it all can be laborious and time consuming, not to mention the ongoing hassle of going through the process of opening new accounts and providing all the necessary identification every time you want a new product. Some savers might have the energy and commitment for this but many do not. Unfortunately, savings often becomes something on the to do list that never gets ticked off and your cash ends up languishing in low interest paying accounts.

    Why are they better for your cash?

    Because the banks on these platforms tend to be smaller, they need to work harder to attract savings deposits. As a result, they generally offer better rates than their well-known high street counterparts.

    In fact, high street banks have passed on such low interest rates to savers over the last year, some have been called on to explain this failure to the regulator.

    Savings platforms are great for savers when rates are riding high as banks compete for their cash, and even better when rates are lower and it’s harder to find competitive deals. Please remember that inflation reduces the spending power of your cash.

    Will my money be safe?

    Normally, each of the UK banking partners on a platform will have FSCS cover of up to £85,000 per eligible deposit. So if you have larger amounts to save, you can spread your money around providers with separate banking licences for added peace of mind. Please note that while your savings may be protected with a banking partner, you usually can’t withdraw your money from a fixed term until the term ends.

    More on how your money's protected

    Given the benefits they offer, the rise of savings platforms and their place in the savings landscape seems inevitable.

    Psst. A better way to save from Hargreaves Lansdown

    HL’s award winning cash savings platform, Active Savings, gives you all the benefits of a platform outlined above, plus the knowledge that it is powered by Hargreaves Lansdown, a FTSE-listed company and the number one investment platform for private investors. This means you can see your savings and investments side-by-side, if you hold other HL products.

    So, the best kept secret in savings? Not for long! Pass it on.

    And talking of passing things on, here’s some feedback Active Savings clients have passed on…

    One of the reasons why I like Active Savings: you can open an account but don’t have to add funds straight away, meaning you can browse your options without feeling rushed into anything. Andrew

    I find Active Savings a fantastic way of getting guaranteed, secure and predictable returns for my cash. Active Savings accounts are so easy to manage. Stefan

    I’m extremely pleased with the service, and ease of it all. Melanie

    DISCOVER ACTIVE SAVINGS

    2.73% 5.43% 5.49% 5.21%

    The best rates on Active Savings

    Pick and mix savings products from a range of banks and building societies, offering competitive rates, all through Active Savings from Hargreaves Lansdown.

    Market leading Sharia rate
    Market leading interest rate

    Easy access

    4.75% | 4.65%
    (AER | Gross)

    Market leading Sharia rate
    Market leading interest rate

    1 year

    5.16% | 5.16%
    (AER | Gross)

    Market leading Sharia rate
    Market leading interest rate

    18 months

    4.80% | 4.80%
    (AER | Gross)

    Market leading Sharia rate
    Market leading interest rate

    2 years

    4.95% | 4.95%
    (AER | Gross)

    Market leading Sharia rate
    Market leading interest rate

    Easy access

    4.75% | 4.65%
    (AER | Gross)

    Market leading Sharia rate
    Market leading interest rate

    1 year

    5.16% | 5.16%
    (AER | Gross)

    Market leading Sharia rate
    Market leading interest rate

    18 months

    4.80% | 4.80%
    (AER | Gross)

    Market leading Sharia rate
    Market leading interest rate

    2 years

    4.95% | 4.95%
    (AER | Gross)

    Minimum deposit requirements apply to individual products. With fixed term savings you can’t usually withdraw your money until the term has ended. Easy access and limited access products pay a variable rate and fixed term products pay a fixed rate.

    Comparisons with average market rates for easy access products are based on instant access products which allow immediate withdrawals. Active Savings offers easy access products and withdrawals usually take one working day. Some of these rates may be offered by Islamic Banks which offer an expected profit rate rather than interest. More on Sharia savings.

    Source for market average rates: Bank of England, 31 October 2023. Source for market leading rates: Moneyfacts, 27 Feb 2024 at 10:20am. Please note products can be added or withdrawn at any time.

    FSCS protected

    When your money is in a savings product through Active Savings, it’s held by that bank or building society. If they were to fail, the FSCS will protect eligible deposits up to £85,000 per banking licence.

    Find out more about FSCS protection

    See all our latest rates

    Log in to your Active Savings account

    Open an Active Savings account

    Discover Active Savings

    See all our latest rates

    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.

    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.

    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.

    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. Once you have opened a fixed term product the rate won't change, but rates on easy access products can vary.

    If you are considering adding money to this savings product, please ensure you have opened an Active Savings Account and given us your instructions before the application deadline.

    The savings of private individuals held with authorised banks and building societies are covered under FSCS. All of our partner banks are authorised by the Prudential Regulation Authority (PRA) and covered under FSCS.

    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.

    Bank of London and The Middle East plc operates under Islamic Finance principles and do not offer interest on their products, instead they pay an expected profit rate. Find out more about Sharia banking.

    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. Easy access products pay a variable rate and fixed term products pay a fixed rate.

    This website is issued by Hargreaves Lansdown Asset Management Limited (company number 1896481), which is authorised and regulated by the Financial Conduct Authority with firm reference 115248.

    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. Hargreaves Lansdown Asset Management Limited and Hargreaves Lansdown Savings Limited are subsidiaries of Hargreaves Lansdown plc (company number 2122142).

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