Hargreaves Lansdown (HL) has launched its first own-brand savings product, a Cash ISA designed to give clients a “consistently competitive” rate and an alternative to low-paying high street banks.
The new Cash ISA, unveiled during UK Savings Week (22–28 September 2025), is powered by a partnership with Shawbrook Bank. Deposits are FSCS-protected up to £85,000 and HL has committed to ensure the rate never falls below Bank of England base rate plus 0.65%. The launch marks a shift for HL, which traditionally offered only third-party savings products on its Active Savings platform.
Better interest rates than high street banks
At launch, the HL Cash ISA rate is 3.45%, a significant uplift compared with the UK’s largest banks. According to HL data, the average Cash ISA rate from the “Big Six” banks is just 1.28%, with individual offerings well below that:
- Barclays: 1.11%
- HSBC: 2.10%
- Lloyds: 1.10%
- Santander: 1.20%
- Nationwide: 1.05%
- NatWest: 1.14%
Mark Hicks, head of Active Savings at HL, said the move is designed to combat the UK’s “savings black hole,” with an estimated £526bn sitting in current accounts earning no interest. He argued the branded product will provide “ease and consistency” for clients who don’t want to constantly switch for better deals.
Not as competitive as challenger banks
However, while HL’s 3.45% comfortably beats the big banks, it still lags behind the top-paying Cash ISAs available from challenger banks. According to the latest Good Money Guide Cash ISA tables, market-leading providers are currently offering over 4% on easy-access and fixed-term ISAs – as much as a full percentage point higher than HL’s product.
That gap could mean hundreds of pounds in lost interest for savers with large deposits over the course of a year. But HL is betting that its combination of brand trust, platform convenience, and a guaranteed base rate-linked minimum will appeal to customers who value stability over rate-chasing.
HL also announced new features for its savings service, including app access to HL’s savings platform, Active Savings and payroll-linked regular saving options. These sit alongside plans to roll out additional ISA tools in 2026 as the platform expands beyond investments into workplace savings.
For savers, the message remains clear: HL’s new branded Cash ISA is a step up from the high street, but the very best returns are still found among challenger and specialist providers.
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.
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