Hargreaves Lansdown has expanded its cash savings offering by introducing a fixed-term cash ISA, in a move that it says makes it the first investment platform to offer such products.
The firm’s HL Active Savings platform – which is the only cash savings platform where investors can spread their allowance across different types of ISA – now includes fixed-term cash ISAs alongside its existing easy and limited access choices.
This flexibility allows savers to ‘bucket’ their ISA savings, keeping some money in easy-access products while locking some away with products offering higher rates.
The fixed-term cash ISA is provided by Coventry Building Society and offers a one-year interest rate of 4.8%, tax free. Hargreaves Lansdown said it will expand its cash ISA proposition by rolling out additional products from its existing bank partners in the first half of 2024.
Mark Hicks, head of active savings at Hargreaves Lansdown, said: “Taking advantage of cash ISAs is becoming increasingly important for clients as interest rates have risen and as more savers start earning more than the tax-free allowance.
“By providing the full suite of cash ISA products, clients can now have more flexibility when managing their ISAs alongside their existing savings portfolio, whilst also having the flexibility to choose from multiple deposit types.”
In addition to launching the fixed-term cash ISAs, Hargreaves Lansdown announced that Sainsbury’s Bank has joined its Active Savings platform. This inclusion brings the total number of banking partners to 20.
HL Active Savings launched in 2018 and is the UK’s largest retail online cash savings platform with over 175,000 clients and more than £7.8bn savings as of September 2023.