Improving
your cash
strategy
Don't miss out on better cash returns
Important information - Active Savings helps you make your own decisions and is not personal advice. Fixed term products generally only allow access to funds at maturity. Inflation reduces the future spending power of money.
Everyone needs cash
Yet many of us neglect our cash savings.
If that sounds familiar you're not alone.
Holding the right amount of cash is key. You'll need some set aside for emergencies, but you might also be saving for a goal or event such as a new car or a wedding. Or, you might just want to keep some cash aside ready for when the right investment opportunity comes along.
Make it go further
Many are missing out on higher rates. According to our research 37% of all savers we surveyed have never switched their savings. Almost half don't even know what rate they're getting*.
An effective cash strategy can boost your returns and help you reach your goals sooner.
*HL Survey, September 2020, 2,001 nationally representative respondents.
Building a savings portfolio
Start by thinking about your short, medium and longer-term goals.
This will help you decide how to spread your money to ensure you earn the best return possible, while having access when you need it.
Short term
Cash for emergencies
Financial planners generally suggest keeping between three to six months’ worth of income in easily accessible cash, in case of an emergency like a leaky roof or losing your job.
Medium term
Cash for known expenses
This could be anything from a new car, a tax bill, school fees or even a property purchase. If you know when you’re likely to need the cash you can strategically use fixed term savings to get a better rate than easy access savings.
Longer term
If you want to earn competitive rates of return without risk to your capital, longer term fixes can really help.
Short term
Cash for emergencies
Financial planners generally suggest keeping between three to six months’ worth of income in easily accessible cash, in case of an emergency like a leaky roof or losing your job.
If you’re in retirement, you might want to have more as your income may be lower so it may take longer to build your savings back up.
Keeping this pot of cash in an easy access account gives you the freedom to withdraw whenever you need.
Easy access rates are variable. While instant access accounts allow you to instantly withdraw your money at any time, with Active Savings withdrawals usually take up to one working day.
including unconditional bonuses
2.73%
Source: Bank of England, data correct as at 31 October 2023
through Active Savings
How hard can it be?
Building an effective strategy can be a hassle. To chase good rates you'd need to save with several different banks.
That's more paperwork, more passwords to remember and more accounts to manage.
And not everyone has the time.
We can help
That's why we launched Active Savings
It lets you pick and mix a range of savings products from multiple banks and building societies, through the convenience of one online account.
And once you're set up there are no forms or paperwork to fill in when moving money around. So you can manage your cash all in one place, with just a few clicks.
Getting started only takes a few minutes.
It's a great product and with a variety of banks offering competitive rates with varying options like fixed term and instant access to your money, the choice is truly yours.MR OMANG, Leicestershire
AER 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.
Some banks offer a high introductory or bonus rate which drops to a much lower rate after a short period of time. With Active Savings, our partner banks simply offer consistently good rates.
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).