If you’ve spent hours searching for a decent savings account, it can be incredibly frustrating when the interest rate is cut just 12 months down the road.
This is something that Hargreaves Lansdown’s Active Savings product aims to address. Launched by the investment broker last year, Active Savings lets customers pick and choose from a range of easy access and fixed term savings accounts.
You get started by depositing a minimum of £1,000 which you can allocate to as many savings accounts as you want, with rates of up to 2.55%. You’ll receive monthly statements and a warning when rates are about to expire.
Advantages of Hargreaves Lansdown Active Savings
“Active Savings is the only UK service where people can manage their investments and savings in one place,” says Hargreaves Lansdown’s head of communications, Danny Cox. “This makes managing your money so much easier than multiple accounts.”
At the moment the service offers access to just 29 accounts from nine providers, so you won’t necessarily find the best rates on there. Hargreaves Lansdown hopes to add five or six banks this year, which will increase choice.
It’s also not possible to save into an ISA or SIPP, however this is something the broker plans to offer in the future.
Disadvantages to Active Savings
The biggest potential disadvantage of the service is that you might be able to get better rates by going to the banks directly. This is because Hargreaves Lansdown charges providers 0.25% of balances held per year.
And while switching is easy, you need to be sure you’ll take notice of the email warnings about soon-to-expire rates. If you’re of a lazier nature, a better option might be Octopus Cash, whose 12-month account automatically offers the best available rate at the end of the term.
Hargreaves Lansdown Active Savings Alternatives
It’s also worth checking out Raisin UK. Its marketplace has 19 products compared with Hargreaves Lansdown’s 29, but the highest rate is 2.75% rather than 2.55%.
If you’re a Hargreaves Lansdown customer, Active Savings is probably going to be the most convenient savings option out there. And with more banks set to come on board, the choice of accounts – and hopefully rates – will soon increase.
Here’s a little video intro from Hargreaves Lansdown on their Active Savings product…
Emily Perryman is a freelance financial journalist with over a decade of experience writing for national, consumer and trade publications. She specialises in investments, pensions, property, fintech and tax. Emily was previously the personal finance editor at Shares magazine.