Hargreaves Lansdown and ISA

ST73

I am looking into opening an Active Savings Account with HL. I have never used one of these platforms before but have now read lots about them and it seems pretty clear. I am going to have about £50,000 to put into savings accounts soon, I’d like to earn some interest over the next 6 years until  I retire to supplement my pension. I just wondered if a savings platform is a good idea and why their cash ISA rates are so low. Thanks in advance for any advice. 

Band7

HL take a cut for the service they provide. In most cases, you will get much better rates if you go directly to a savings provider rather than use the HL service.

If you don't need your money for the next six year, why not go for a a fixed term account? The currently best fixed term ISA a 3 and a bit years one from Coventry, maturing on 30.11.25, 4.4%. The best non-ISA account is a 5-year 5.1% at Gatehouse.

ST73

Band7 said:

HL take a cut for the service they provide. In most cases, you will get much better rates if you go directly to a savings provider rather than use the HL service.

If you don't need your money for the next six year, why not go for a a fixed term account? The currently best fixed term ISA a 3 and a bit years one from Coventry, maturing on 30.11.25, 4.4%. The best non-ISA account is a 5-year 5.1% at Gatehouse.

I was just looking at the changing interest rates and putting money into several accounts for different periods of time. Whether this is worth the effort I suppose depends on whether the interest rate keeps rising. A fixed term isa may be an easier option, thanks for your help.

Albermarle

The main advantage of HL active savings ( or similar) is that you can switch to a new savings provider without having to register with them as a new customer. This can be a faff sometimes,
Of course you can only switch to providers/deals that HL offer.