Hargreaves Lansdown has launched a new money market fund with an ongoing charge of just 0.06%, as demand from retail investors for cash-like investments continues to surge.
Hargreaves Lansdown (HL) has announced the launch of its own money market fund, offering investors an expected yield of 3.95% and what it claims is the lowest ongoing charge of any retail money market fund in the UK.
While its competitive pricing could attract investors looking for somewhere to park cash between investments, the 3.95% yield is not guaranteed and will fluctuate with market conditions.
The HL Money Market Fund will be available exclusively to the investment platform’s 2.2 million clients, with an annual fund charge of just 0.06%, equivalent to 60p for every £1,000 invested.
The fund opens for investment on 21 October ahead of its official launch on 4 November 2026, with BNY Investments appointed as delegated investment manager.
The launch comes as investors increasingly turn to money market funds as an alternative to traditional savings accounts.
According to HL, the number of its clients holding money market funds has increased by 35% over the past year, while industry figures show a record £6.9 billion flowed into the sector from retail investors during 2025.
Money market funds invest in short-term debt issued by governments, banks and highly rated companies. They are generally considered lower risk than equities, although unlike bank deposits, returns and capital are not guaranteed.
HL says its new fund will offer same-day settlement for investors selling before 8am, allowing them to reinvest the proceeds immediately or request a withdrawal.
Doug Abbott, Chief Product Officer at Hargreaves Lansdown, said:
“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.”
He added that the fund offers investors a lower-risk way to put their money to work while retaining flexibility.
HL estimates that the UK’s four largest banks currently pay an average of just 0.95% on instant-access savings, considerably below the fund’s expected yield.
However, investors should consider the total cost of ownership. In addition to the fund’s 0.06% charge, HL’s platform and dealing fees may apply, reducing the overall return.
For example, HL estimates that a £10,000 investment held for 28 days would generate £23.64 after charges, assuming the fund achieves its target yield.
The fund can be held within Stocks and Shares ISAs, SIPPs, Lifetime ISAs and general investment accounts.
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