- Experts rate Lightyear High-Interest Vaults highly for providing an easy-access investment product that allows users to earn competitive interest rates on idle cash. The product is backed by AAA-rated money market funds, although it does come with a 0.25% annual fee and lacks FSCS protection, which may be a consideration for potential investors.
- Across 676 user reviews on Good Money Guide, averaging 4.9/5, customers frequently commend the app's user-friendly interface, low fees, and transparent pricing. Many users appreciate the platform's simplicity and efficiency, making investing accessible for both beginners and experienced investors. However, some users have noted that while the service is excellent, there may be better interest rates available elsewhere.
Lightyear High-Interest Vaults Expert rating
Our expert rating is the average of the areas listed here, each scored out of 5 by our team.Our experts have rated Lightyear High-Interest Vaults across five key areas of our review framework.
- Pricing4.5
- Market Access4.0
- App & Platform5.0
- Customer Service5.0
- Research & Analysis4.5
Pros
- High interest rates
- AAA-rated money market fund
- Interest earn daily
Cons
- Better rates are available elsewhere
- Interest is paid monthly instead of daily
See full expert review
Our verdict
Lightyear’s High-Interest Vaults give customers a way to earn interest on uninvested cash by placing it into low-risk money market funds managed by BlackRock. These are easy-access, variable-rate investment products available in GBP, EUR and USD, designed to track short-term interest rates such as the Bank of England overnight rate.
What are Lightyear High Interest Vaults?
We rate Lightyear’s Vaults highly as they are designed for investors who want their idle cash to earn a market-linked return while remaining easy to access, rather than sitting uninvested in a brokerage account.
Lightyear's High Interest Vaults are an easy-access cash investment product with variable rates, and there are separate vaults for deposits in Sterling, Euros and US dollars. Currently, the Sterling Vault offers around 3.77% AER (variable), with interest calculated daily and paid monthly. There are no minimum or maximum deposit limits, so users can start from £1 and add unlimited amounts.
How do Lightyear Vaults differ from holding cash from savings accounts?
Unlike a traditional savings account, the Vault is an investment product rather than a bank deposit. Your money is invested in AAA-rated money market funds, meaning capital is at risk and FSCS protection does not apply to funds held within the money market fund itself.
What is your money actually invested in?
Cash in the Sterling Vault is placed into funds such as the BlackRock ICS Sterling Liquidity Fund, which invests in diversified short-term instruments like treasury bills, commercial paper, certificates of deposit and repurchase agreements. This spreads risk across multiple institutions rather than relying on a single bank.
Is it cheaper to buy the money market fund directly?
Lightyear charges a 0.25% annual fee on money held in the Sterling Vault. While investors could theoretically access similar institutional money market funds directly, minimum investments can run into hundreds of millions, so Lightyear provides retail access to these products with no minimum deposit.
Customer reviews for Lightyear
Customer ratings come from reviews left on this site. Every review is read and approved before it is published.Based on 676 reviews
- Excellent92%
- Very good6%
- Basic1%
- Poor1%
- Bad0%
Read customer reviews
Super Easy
They are super simple and easy
Transparent
Seamless user experience
Perfect
Very good app
Clear
Easy to use.
Simple
Simple to use app
Transparent
Easy to use, focused on UX.
Hsjsja
Fausja
Ease of use
They make it really easy to invest for the ordinary investor
Friendly
Friendly & cost effective interface for effective ETF, stocks, bond investing
Good Support
Human and fast support!
Really nice, compared to other "low cost neobrokers".
An actual support team, great app and lowest fees on the market!
Easy to understand
Easy for new customers to understand the investment world
Thoroughly researched information about companies
User Experience of the app including buying and selling events shown on the graph
Convenient
Fast and reliable service. Easy to use
Easy
Provides all the information I need but no more in a very easy to scan format.
Minimalistic
great app with easy to use interface
Easy to use
Easy to invest
Innovative
Makes investing simple and transparent with an intuitive platform
Great
Everthing
Simple
Making investing simple and clear
easy
ease of use
Lightyear’s High-Interest Vaults are designed to help investors earn a return on idle cash by placing it into low-risk money market funds rather than leaving it uninvested in a brokerage account. In this guide, we explain how the Vaults work, what they invest in and whether they’re a good alternative to traditional savings.
Capital at risk
Richard is the founder of the Good Money Guide (formerly Good Broker Guide), one of the original investment comparison sites established in 2015. With a career spanning two decades as a broker, he brings extensive expertise and knowledge to the financial landscape.
Having worked as a broker at Investors Intelligence and a multi-asset derivatives broker at MF Global (Man Financial), Richard has acquired substantial experience in the industry. His career began as a private client stockbroker at Walker Crips and Phillip Securities (now King and Shaxson), following internships on the NYMEX oil trading floor in New York and London IPE in 2001 and 2000.
Richard’s contributions and expertise have been recognized by respected publications such as The Sunday Times, BusinessInsider, Yahoo Finance, BusinessNews.org.uk, Master Investor, Wealth Briefing, iNews, and The FT, among many others.
Under Richard’s leadership, the Good Money Guide has evolved into a valuable destination for comprehensive information and expert guidance, specialising in trading, investment, and currency exchange. His commitment to delivering high-quality insights has solidified the Good Money Guide’s standing as a well-respected resource for both customers and industry colleagues.
