Hargreaves and Lansdown and negative interest rates

Sterlingtimes

Hargreaves and Lansdown email today: "If you’re worried about the potential impact of negative rates on your savings, and you have enough set aside in an easily accessible account for emergencies, you could consider fixed rate products for some of your cash."

I think that H&L is intimating that it may start charging customers for cash deposit if they do not move to fix term interest rate products. Is it likely that H&L will deduct money from pensions?

stephenadarglas

It's telling you you can have more interest in fixed rate products.

masonic

I think it is more likely HL are engaged in a bit of scaremongering about *other providers* charging interest on deposits in order to sell their Active Savings product, which of course would never do a thing like that.

Sterlingtimes

stephenadarglas said:

It's telling you you can have more interest in fixed rate products.

H&L pays 0% APR for cash in it pension or Fund & Share account and 0.3% for instant access cash invested in H&L via the Coventry.

If others move to lower rates than H&L then H&L would follow. So it may be time to move that money away from  H&L and hide it under the mattress.

AnotherJoe

Sterlingtimes said:

Hargreaves and Lansdown email today: "If you’re worried about the potential impact of negative rates on your savings, and you have enough set aside in an easily accessible account for emergencies, you could consider fixed rate products for some of your cash."

I think that H&L is intimating that it may start charging customers for cash deposit if they do not move to fix term interest rate products. Is it likely that H&L will deduct money from pensions?

No, its not doing that at all. Its just trying to get you to invest in their active savings including fixed term.

Its just marketing.

FWIW if you keep cash in AS too long it shifts it to the share account. Thats in the Ts&Cs.

EthicsGradient

Sterlingtimes said:

stephenadarglas said:

It's telling you you can have more interest in fixed rate products.

H&L pays 0% APR for cash in it pension or Fund & Share account and 0.3% for instant access cash invested in H&L via the Coventry.

If others move to lower rates than H&L then H&L would follow. So it may be time to move that money away from  H&L and hide it under the mattress.

If any provider starts negative interest rates on anything from a retail customer, they'll have to give enough notice for them to withdraw the money from the account. So it is never "time to hide it under the mattress" until they've announced the negative interest rate.

ColdIron

It's HL (Hargreaves Lansdown) not H&L

caveman38

AnotherJoe said:

Sterlingtimes said:

Hargreaves and Lansdown email today: "If you’re worried about the potential impact of negative rates on your savings, and you have enough set aside in an easily accessible account for emergencies, you could consider fixed rate products for some of your cash."

I think that H&L is intimating that it may start charging customers for cash deposit if they do not move to fix term interest rate products. Is it likely that H&L will deduct money from pensions?

No, its not doing that at all. Its just trying to get you to invest in their active savings including fixed term.

Its just marketing.

FWIW if you keep cash in AS too long it shifts it to the share account. Thats in the Ts&Cs.

Are you talking about money in the cash hub. They wouldn't closed fixed rate accounts and transfer surely.

masonic

caveman38 said:

AnotherJoe said:

Sterlingtimes said:

Hargreaves and Lansdown email today: "If you’re worried about the potential impact of negative rates on your savings, and you have enough set aside in an easily accessible account for emergencies, you could consider fixed rate products for some of your cash."

I think that H&L is intimating that it may start charging customers for cash deposit if they do not move to fix term interest rate products. Is it likely that H&L will deduct money from pensions?

No, its not doing that at all. Its just trying to get you to invest in their active savings including fixed term.

Its just marketing.

FWIW if you keep cash in AS too long it shifts it to the share account. Thats in the Ts&Cs.

Are you talking about money in the cash hub. They wouldn't closed fixed rate accounts and transfer surely.

Yes, that doesn't include money pushed out to a savings product.

dunstonh

I think that H&L is intimating that it may start charging customers for cash deposit if they do not move to fix term interest rate products. Is it likely that H&L will deduct money from pensions?

HL are fantastic at marketing.  Almost up there with St James Place.
Nothing they say is advice or recommendation. It is marketing.  If say Aviva were to write to you to say the same thing, would you take any notice?

Thrugelmir

The only people that will charge negative rates are the banks on corporate accounts. 

HL are wisely suggesting that if people have concerns they lock into fixed term deposits. Rather than expose themselves to the whims of the retail savings market further down the road.