Frequently asked questions
Most popular
-
You can open a new savings product at any time by logging into your HL Account and then selecting the ‘open a savings product’ tab in your Active Savings Account.
You will be presented with a list of all available products to choose from. By selecting the ‘details & apply’ button you can view the key information for each product and then apply if you wish to do so.
You can either top up your cash hub before you choose a savings product, via the ‘top up’ button, or you can top up as part of the process when you open a new product.
-
When you log into your HL account, you’ll see a ‘top up’ button next to your Active Savings Account. This will give you the option to top up via debit card, easy bank transfer, or from your Fund and Share Account (if you have one).
You are unable to top any fixed term products that have already started, however you are able to top up existing Easy Access or Limited Access products that you hold.
In order to add additional funds to your Easy or Limited Access Active Savings product(s), providing there is no pending instruction, you would first need to click into your Active Savings Account.
From here, you will find an ‘add money' button next to the name of your Easy or Limited Access product. Once selected, you will need to enter the amount you would like to top up from available funds in your cash hub and press 'continue'.
-
To withdraw money from your Active Savings account, select the ‘withdraw’ button in your Active Savings account.
Please note, the balance will first need to be available in your cash hub.
If the money is held in an easy access or limited access product, you will find the option to ‘withdraw’ beside the product – this will send the money back to the cash hub.
If you have money in a fixed term product you will need to wait until the product matures and your savings have been returned to the cash hub before they can be withdrawn.
Please remember, you can’t withdraw money from fixed term products before they reach their maturity date – except for a limited number of exceptional circumstances (e.g. terminal ill health).
If the money is settled within the cash hub it will typically be sent via faster payments, which usually complete within one working day.
If you’re withdrawing from an Easy or Limited Access product it could take up to two working days for the money to be paid into your nominated bank account.
However, if the funds have been on the system for less than 60 days, or you have recently done a debit card top up, we may need to process the withdrawal via a debit card refund. This can take 3 - 5 working days for the funds to clear with your bank. We do so to comply with anti-money laundering regulations.
-
If you wish to transfer from your Fund and Share Account, any investments will need to be sold and the trades settled first. Then head to your Active Savings Account and select the ‘top up’ button, where you’ll then have the option to add money from your Fund and Share Account. Instructions received before 12pm on a working day will be processed on the same day. All other instructions will be processed on the next working day.
When you log into your HL account, you’ll see a ‘top up’ button next to your Active Savings Account. This will give you the option to top up via debit card, or from your Fund and Share Account (if you have one.)
-
Active Savings to a Fund and Share Account
You can transfer money to a Fund and Share Account online. Just choose the ‘withdraw’ option within your Active Savings Account. If the money is in an easy access product or available in your cash hub already, you’ll be able to transfer it over and invest immediately.
Active Savings to a Stocks and Shares ISA
Unfortunately you can’t transfer money directly to your Stocks and Shares ISA yet. To transfer money you can either send it via a Fund and Share Account (if you have one), or via your nominated bank account. If you choose to go via a nominated bank account it usually takes up to one working day for withdrawals to settle in your account.
-
We’re authorised by the Financial Conduct Authority (FCA) as an electronic money institution but we’re not a bank. This means that in different scenarios your money is protected in different ways.
How your money in a savings product is protected
When your money is in a savings product through Active Savings, it’s held by that bank or building society.
If the bank or building society providing the savings product fails:
If the bank or building society were to fail, the FSCS will protect your money up to £85,000 per banking licence.
When using Active Savings, it may take longer to receive your money from the FSCS than if you saved directly with the bank or building society. But as a guide, the FSCS aim to make all payments back to savers within three months.
If HL Savings Ltd fails:
As your money is held by the bank or building society who provides the product, it will not be affected if we go out of business and will still be covered by the FSCS. But it may take longer to get back than if it was saved directly with the bank or building society.
How your money in the cash hub is protected
Any money you pay into your Active Savings account goes into the cash hub while you choose your savings products. When you take money out of a savings product it goes back into the cash hub while you decide what to do with it.
If HL Savings Ltd fails:
As an electronic money institution, we issue you electronic money (e-money) equal to your money held in the cash hub. This is so you can see how much money you hold. But the cash hub isn’t a savings account and it doesn’t pay any interest.
In the unlikely event that we (HL Savings Ltd) fail, your money in the cash hub is not covered by the FSCS. Instead, it’s protected through the FCA’s safeguarding rules.
Money in the cash hub is kept separately from our own company money in a safeguarded account with an approved bank (currently Barclays Bank Plc) that creditors can’t access.
There’s no limit to the amount protected through safeguarding, but some costs could be taken by the administrator or liquidator if we were to fail. This could impact the amount that you receive, and it could take longer to get your money back than if it were held directly with a bank.
If the cash hub account provider fails:
If Barclays were to fail, the FSCS will protect up to £85,000 of your eligible deposits in the cash hub, but it may take longer to get your money back than if it were held directly with Barclays. If you hold money with Barclays outside of Active Savings as well, either directly or through other providers, this may also fall under the same £85,000 limit.
More about how your money is protected
-
We are authorised by the Financial Conduct Authority (FCA) as an electronic money institution, which means we must treat your money in a certain way.
- All money coming in and going out of your Active Savings Account goes through the cash hub.
- The cash hub is a segregated bank account, currently held with Barclays Bank plc, where your money will be safeguarded by us until you choose what to do with it. You won’t earn any interest on money held in the cash hub.
- Money in the cash hub is either protected through the FCA’s safeguarding rules if we (Hargreaves Lansdown Savings Ltd) were to fail, or the Financial Services Compensation Scheme (FSCS), if Barclays were to fail. Read more about how your money is protected.
- When we receive your money into the cash hub, we’ll immediately issue your Active Savings Account with the same amount of electronic money (e-money) so you can put it into a savings product or withdraw it.
- E-money is simply an electronic monetary value, equal to your money held in the cash hub, which we are authorised by the FCA to hold on your behalf.
- You won’t earn any interest until you add your e-money to savings products. If you haven’t done this within 30 working days of the e-money being issued, we may return your money to you. We’ll let you know if we do.
-
Our Cash ISA is now available. You can open it and manage it alongside other HL accounts.
At the moment, we don’t offer a cash savings product in a SIPP although we hope to offer this in the future.
Interest payments, charges and tax
-
How interest will be paid varies by product.
For easy access savings interest accrues daily and is typically paid on the first working day of the month. Any interest received accrues within the product rather than being paid out to the cash hub.
For fixed term savings interest is typically paid annually into the cash hub. Products running for less than a year will have both the capital and all interest repaid into the cash hub at maturity. Please see individual product summaries for details.
Please note that some products calculate interest up to and including the maturity date. This means your money will earn an extra day of interest, but it will be returned to the cash hub on the working day following maturity.
When interest payments are made into the cash hub they can then be withdrawn or saved into a new product. Once in the cash hub any interest received will need to be added to a product within 30 working days, or it may be returned to you.
-
If the rate on your savings product is variable, then it can go up or down at any time. For more information you can see the Terms and Conditions within the summary box before opening the product. If your rate does change you will be given two weeks’ notice.
If the rate on your savings product is fixed, then it will stay the same until the product matures.
-
We don’t charge you directly, instead we charge our banking partners. This means the same or similar products offered directly by the banks and building societies may have different interest rates to those available on Active Savings.
-
All interest is paid gross i.e. without any tax deducted. Interest received from products held in your Active Savings Account, count towards your Personal Savings Allowance. You are responsible for paying any tax due on interest that exceeds your Personal Savings Allowance to HM Revenue and Customs.
-
As part of your April bi-annual statement, we will send you a consolidated tax schedule which summarises all the interest you have received in the previous tax year from the products held in your Active Savings Account along with all your other holdings within Hargreaves Lansdown accounts. You are responsible for submitting this to HMRC with your tax return.
Other popular questions
-
Yes. You don’t need to add any money or choose a savings product to open an Active Savings Account. Once you have opened an account you’ll have access to our full range of savings products, including any private offers which are only shown to Active Savings clients (when they are available).
-
You can typically choose from easy access, limited access and fixed term savings. Fixed terms usually range from 1 month up to 5 years. The products available will regularly change, depending on what our banking partners are offering at the time. This means that not all products will be available all the time.
-
No, you can open as many products as you wish.
-
You don’t need to add any money to simply open an Active Savings Account. When you choose a savings product they may have a minimum amount that you need to open the product with – full information will be provided in the summary box before you open the product.
Please be aware the maximum payment you can make with a debit card is £99,999.00, although your bank may set lower limits. If you wish to add more than this to your Active Savings Account then you will need to make multiple debit card payments. You have 30 working days to choose a product or your money may be returned to you.
-
At the moment, you can only open an account in the name of an individual aged 18 or over.
You can’t apply for an account if you live overseas or aren’t a UK resident for tax purposes. Unfortunately, we can’t offer joint accounts or those for children or companies.
-
We are authorised by the Financial Conduct Authority (FCA) as an electronic money institution, which means we must treat your money in a certain way.
When we receive your money into the cash hub, we’ll immediately issue your Active Savings Account with the same amount of electronic money (e-money) so you can put it into a savings product or withdraw it.
E-money is simply an electronic monetary value, equal to your money held in the cash hub, which we are authorised by the FCA to hold on your behalf.
-
Your Active Savings Account is not a bank account and we reserve the right to return any money held within the cash hub after 30 working days of it being received, if you do not provide us with an instruction before then.
If you have a Fund and Share Account we’ll transfer your money there. If not we may return it to your Nominated Bank Account, or where you paid the money from. You will be notified if your money is returned. All interest and capital is returned to the cash hub when your fixed term ends.
-
You can add money to or withdraw money from the cash hub at any time. Below we provide a brief summary of how long it generally takes various payment types to clear.
- Debit card payments – one working day to clear into your Active Savings Account. Withdrawals to debit card can take up to five working days and will depend on how quickly your bank allocates the money to your account
- Cash transfers from a Fund and Share Account – same working day if instructed before 12pm, otherwise one working day
- Cash transfers to a Fund and Share Account - same working day if instructed before 4pm, otherwise one working day
- Withdrawals – typically up to three working days
-
Once you have removed your money from a product you are able to hide and unhide these products if you wish.
-
You can cancel an instruction to add money to a fixed term product at any time before the application deadline. If there is the option to cancel there will be a clock icon by the product in the account overview screen:
To cancel your instruction head to the product details under the timer and select the red ‘cancel’ in the pending actions section.
Once the application deadline has passed you can no longer cancel your instruction. But some fixed term savings products may offer a cooling off period. Please check individual product summaries for details and only commit savings once you are happy with the terms.
-
Around 14 days before your savings product matures, we’ll send you an email to let you know what your options are. Once your savings product has matured, we’ll return your initial savings and any interest you have earned to the cash hub. You then have 30 working days to decide what to do, or your money may be returned to you.
-
No, you cannot add more money to your fixed term product after the application date.
The application date is when the product will be removed from the website. The product could be removed from the website before then, if the capacity fills up, or the provider decides to pull the product for any other reason.
The application date can be found in the product’s important information on our latest rates page, or in the product summary box when your logged in to your account.
-
The interest you earn in fixed term deposits of less than a year is calculated pro rata.
For example, if you have £10,000 in a 6 month fixed rate of 5% AER/Gross, your interest at the end of the term will be £250.
For comparison, if you have £10,000 in a 12 month fixed rate of 5% AER/Gross, your interest at the end of the term will be £500.
These are just examples, what you will actually receive will depend on the products and amounts chosen. Please remember that inflation will erode your money’s spending power over time.
AER (Annual Equivalent Rate) 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 shows the interest 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. Tax treatment can change. Easy access products provide variable rates and fixed term products pay a fixed rate.
-
The gross rate depends how the banks have calculated their interest figures. Sometimes, banks can use compounded gross figures, and sometimes they don't.
Therefore, in some cases the gross rates can be displayed as higher than AER
AER (Annual Equivalent Rate) 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 shows the interest 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. Tax treatment can change. Easy access products provide variable rates and fixed term products pay a fixed rate.
-
Have a question we haven't answered here?
Have a look at our Help section or email us.