£25 HL Active Savings offer - expires 17/06/2020

colsten

NEW ACTIVE SAVINGS ACCOUNTS ONLY
Terms: https://www.hl.co.uk/investment-services/active-savings#terms

Sign up incentive - Terms & Conditions

1. This offer is available to anyone who opens a new Active Savings Account between 20 May 2020 and 17 June 2020 inclusive (“the Offer Period”).

2. To qualify for the offer, you’ll need to fund your Active Savings account with at least £5,000 by debit card, and to subsequently instruct us to add at least £5,000 to one or more savings products. Both of these actions must be taken within 60 days of the opening of the account to qualify. For the avoidance of doubt you can open an account with any amount and still qualify for the offer, provided that your Active Savings account is topped up to a balance of at least £5,000 and you instruct us to add at least £5,000 to one or more savings products. Both of these actions must be taken within 60 days of opening the account in order to qualify.

3. If you open an account within the Offer Period and also satisfy the criteria listed in clause 2, we will credit the cash hub in your account with £25 after the offer has closed and within one month of choosing your savings products. We’ll notify you by email once the £25 has been added.

4. We reserve the right to reclaim the £25 if the overall balance of your Active Savings Account drops below £5,000 within 6 months of the date of the qualifying deposit. We will notify you if we intend to reclaim the £25, and will claim it within 7 working days.

5. We reserve the right to amend, extend or withdraw this offer if necessary, including for legal or regulatory reasons or otherwise. If the offer closes early, all qualifying applications received up until this time will still be accepted. Details of any such amendment, extension or withdrawal will be posted on our website at www.hl.co.uk/savings.

6. This offer is not available to anyone who already has an Active Savings Account open.

7. This offer cannot be used in conjunction with any other offer.

8. You must not be an employee of, or any such employee’s immediate family or household of, any Hargreaves Lansdown Group company.

9. This offer is limited to one payment of £25 per client.

10. This offer will be governed by English law and, in participating, you submit to the jurisdiction of the English courts.

11. References in these terms and conditions to “Hargreaves Lansdown”, “our”, “us” or “we” are to Hargreaves Lansdown Savings Limited (company number 08355960), authorised and regulated by the Financial Conduct Authority (FCA Register number 751996), whose registered office is at 1 College Square South, Anchor Road, Bristol, BS1 5HL. References to the “Hargreaves Lansdown Group” are to Hargreaves Lansdown plc (company number 02122142) and its subsidiaries from time to time.

cattie

Oh bum, I opened my active saver earlier this year  I'd definitely have gone for it otherwise. 

grumiofoundation

colsten said:

NEW ACTIVE SAVINGS ACCOUNTS ONLY
Terms: https://www.hl.co.uk/investment-services/active-savings#terms

If you put £5K into one of their best 1-year accounts, you get an effective 1.85% return. 
Effective return on their best 6-month account is 1.6% for £5K.

Is the effective return on 6-month (assuming you withdraw after 6 months) not 2.1% APR?

Bobblehat

How long does it take for a new Active Savings account to be opened and funds allocated to an account? Given that the "apply by dates" for the best 1 year rates expire on the 25th and 28th (May), could I be in a situation of applying today but by the time it all goes through, the best rates may have disappeared?

trickydicky14

I started using active savings when the first promotional £25 offer came out and I have been using them now on a regular basis.

Just remember they don’t always have the best rates so you need to shop around.

Personally, I have found this set up with HL efficient and very convenient once you are signed up its so easy, no paper work just pay and pick and away you go.

The only small issue is you may have to wait a few days for your money to be moved into your chosen savings account.

I would say give it a go and grab your bonus.

dcs34

grumiofoundation said:

colsten said:

NEW ACTIVE SAVINGS ACCOUNTS ONLY
Terms: https://www.hl.co.uk/investment-services/active-savings#terms

If you put £5K into one of their best 1-year accounts, you get an effective 1.85% return. 
Effective return on their best 6-month account is 1.6% for £5K.

Is the effective return on 6-month (assuming you withdraw after 6 months) not 2.1% APR?

Yes - 1.1% plus £25/£5000 = 0.5% but as its a six month account if both rates are converted to AER it is effectively £50/£5000 = 1%.

So 2.1% AER for 6 months
1.85% AER for 12 months

dcs34

For those that may have (or have had) the previous £40 offer, the T&Cs don't seem to exclude anyone who has previously had an Active Saver account, only those with such an account open at the time of making an application relevant to the offer.

So delete your details, and start a new one 

where_are_we

dcs34 said:

grumiofoundation said:

colsten said:

NEW ACTIVE SAVINGS ACCOUNTS ONLY
Terms: https://www.hl.co.uk/investment-services/active-savings#terms

If you put £5K into one of their best 1-year accounts, you get an effective 1.85% return. 
Effective return on their best 6-month account is 1.6% for £5K.

Is the effective return on 6-month (assuming you withdraw after 6 months) not 2.1% APR?

Yes - 1.1% plus £25/£5000 = 0.5% but as its a six month account if both rates are converted to AER it is effectively £50/£5000 = 1%.

So 2.1% AER for 6 months
1.85% AER for 12 months

grumiofoundation said:

colsten said:

NEW ACTIVE SAVINGS ACCOUNTS ONLY
Terms: https://www.hl.co.uk/investment-services/active-savings#terms

If you put £5K into one of their best 1-year accounts, you get an effective 1.85% return. 
Effective return on their best 6-month account is 1.6% for £5K.

Is the effective return on 6-month (assuming you withdraw after 6 months) not 2.1% APR?

APR - Annual Percentage rate is used only for borrowings. AER - Annual Equivalent Rate is used only for savings and is sometimes referred to as Annual Effective Rate.

I think it is preferable in this case to talk about an "effective" rate and I favour Colsten`s calculation of a 1.6% return on their best 6 months account. The flaw in the 2.1% return is that you do not get 2 x £25 bonuses over a 1 year period - only 1 x £25 bonus is possible. To be strictly accurate the effective rate is slightly more than 1.6% because you get the £25 bonus after about one month and you can withdraw that and invest it somewhere else.

I did the equivalent £25 offer last winter and the 6 month product I chose matures about 8/6/20. Will it be possible to withdraw the proceeds, delete my active saver and reapply before the closing date of 17/6/20 and legally manage another £25 bonus? The accounts offered all close before then so rates may not be that advantageous.

Bobblehat

trickydicky14 said:

I started using active savings when the first promotional £25 offer came out and I have been using them now on a regular basis.

Just remember they don’t always have the best rates so you need to shop around.

Personally, I have found this set up with HL efficient and very convenient once you are signed up its so easy, no paper work just pay and pick and away you go.

The only small issue is you may have to wait a few days for your money to be moved into your chosen savings account.

I would say give it a go and grab your bonus.

Thanks TD14 …. Do you think a new applicant will have to wait for anything in the post before you can go online and manage the account or allocate funds to one of the "product" accounts? If so, it might be cutting it fine the get one of the 1 year 1.35% accounts.

colsten

dcs34 said:

grumiofoundation said:

colsten said:

NEW ACTIVE SAVINGS ACCOUNTS ONLY
Terms: https://www.hl.co.uk/investment-services/active-savings#terms

If you put £5K into one of their best 1-year accounts, you get an effective 1.85% return. 
Effective return on their best 6-month account is 1.6% for £5K.

Is the effective return on 6-month (assuming you withdraw after 6 months) not 2.1% APR?

Yes - 1.1% plus £25/£5000 = 0.5% but as its a six month account if both rates are converted to AER it is effectively £50/£5000 = 1%.

So 2.1% AER for 6 months
1.85% AER for 12 months

sorry yes, I was in a hurry and forgot about the 6 months......even better then!

eskbanker

where_are_we said:

I think it is preferable in this case to talk about an "effective" rate and I favour Colsten`s calculation of a 1.6% return on their best 6 months account. The flaw in the 2.1% return is that you do not get 2 x £25 bonuses over a 1 year period - only 1 x £25 bonus is possible. To be strictly accurate the effective rate is slightly more than 1.6% because you get the £25 bonus after about one month and you can withdraw that and invest it somewhere else.

But 1.6% is an inconsistent mix and match approach - ignoring the minor variance between AER and gross, the actual return over six months would be 1.05% (half of 1.1%, plus the £25), which is therefore 2.1% on the annualised basis used for comparing interest rates, so what does an 'effective rate' of 1.6% actually mean to you?  As you say, you don't have the option to earn two £25s but you also don't have the option to earn the full 1.1% from an account only offering this for six months, so I can't figure out how you'd achieve 1.6% return in any meaningful sense....

Edit: colsten has since clarified that citing 1.6% was a mistake!