HL Active Savings

Carefulspender1

ColdIron said:

OldScientist said:

4) I tested withdrawing money back to my bank account, it arrived the next day (it might even have been the same day).

I'm pretty sure that every transfer from the cash hub has been same day for me. There is undoubtedly a cut off time but for me they are usually planned ahead so I've never left it too late

That's good to know.

Ciprico

....does the 85k protection get applied to each account with a different (sub) lender, and do you get one neat annual tax statement, or one from each different lender....?

Carefulspender1

Ciprico said:

....does the 85k protection get applied to each account with a different (sub) lender, and do you get one neat annual tax statement, or one from each different lender....?

That's a good question - I have no idea...I wonder if anyone here can answer this one?

ColdIron

Ciprico said:

....does the 85k protection get applied to each account with a different (sub) lender, 

When it's in the cash hub it's held with Barclays. Once it's been sent to the provider you get their FSCS protection including anything directly held with them
https://www.hl.co.uk/savings/are-your-savings-safe

and do you get one neat annual tax statement, or one from each different lender....?

Your HL tax certificate will show an aggregated figure across all interest earned with AS

DavidT67

Malchester said:

As with all of these platforms rates are not usually the best. Better rates can nearly always be found by going direct. However platforms do offer a wider range of fixed rate terms, including 1 month, 2 months etc. A fixed rate account is the same inside or outside a platform and the term cannot be broken. As DRS1 says an issue with platforms is having funds sitting in non interest paying accounts as you switch between accounts.

FWIW I have never used a platform (although have a HL Active savings account) preferring to do it myself and, if I'm honest, I enjoy the process.

If you go direct you need to complete a new account application each time and repeat all your personal details time and time again, then keep your fingers crossed whilst money is transfer between providers.

With HL savings hub, it's just a couple of button clicks to open a new product and move money.

Across our family accounts, I've switched savings products sixteen times in the last few months, I wouldn't want to be doing that not on a savings platform !

NB With one exception, the money is held in a HL aggregate client account with the savings providers.

solidpro

I had the effectively the same conversation about the same service here a couple of months ago. I'm using HL active savings because as others have said it's easy to use, access and similifies going to several different banks for a short term offer.

Carefulspender1

ColdIron said:

Ciprico said:

....does the 85k protection get applied to each account with a different (sub) lender, 

When it's in the cash hub it's held with Barclays. Once it's been sent to the provider you get their FSCS protection including anything directly held with them
https://www.hl.co.uk/savings/are-your-savings-safe

and do you get one neat annual tax statement, or one from each different lender....?

Your HL tax certificate will show an aggregated figure across all interest earned with AS

@ColdIron and I'm a bit confused by the protection if HL Savings Ltd fails in which case it's protected by the FCA's safeguarding rules. Am I right in saying that in this unlikely case you'd eventually get your money back less any liquidators fees and you would have to wait for that process to run its course before you got your money. In effect overall with Active Savings, it seems that money is protected under the FSCS scheme if the savings provider or the cash hub provider fails but not if HL Savings fails when it's the administrator/liquidator who would pay you eventually. Have I understood this correctly?

Carefulspender1

solidpro said:

I had the effectively the same conversation about the same service here a couple of months ago. I'm using HL active savings because as others have said it's easy to use, access and similifies going to several different banks for a short term offer.

 Thanks - I did a search of this forum for exactly that topic and this didn't come up in the results - the joy of algorithms! 😁 

ColdIron

Carefulspender1 said:

ColdIron said:

Ciprico said:

....does the 85k protection get applied to each account with a different (sub) lender, 

When it's in the cash hub it's held with Barclays. Once it's been sent to the provider you get their FSCS protection including anything directly held with them
https://www.hl.co.uk/savings/are-your-savings-safe

and do you get one neat annual tax statement, or one from each different lender....?

Your HL tax certificate will show an aggregated figure across all interest earned with AS

@ColdIron and I'm a bit confused by the protection if HL Savings Ltd fails in which case it's protected by the FCA's safeguarding rules. Am I right in saying that in this unlikely case you'd eventually get your money back less any liquidators fees and you would have to wait for that process to run its course before you got your money. In effect overall with Active Savings, it seems that money is protected under the FSCS scheme if the savings provider or the cash hub provider fails but not if HL Savings fails when it's the administrator/liquidator who would pay you eventually. Have I understood this correctly?

Sort of. Your money is not held with HLSL so if they go bust your money doesn't disappear and they cannot access it to settle any of their obligations. If they failed a liquidator or administrator would be called in to pick through the rubble to conclude HLSL's affairs. They are performing a task and would need to be paid for their services (divided by 270,000 or so clients) but they won't pay you anything (they have not failed). Your money would be returned from where ever it is held

masonic

The ultimate outcome should HLSL fail would be a ad valorem deduction of the cost of administration plus a share of losses for any money not effectively safeguarded. If you think that HLSL is being run responsibly, then the fees are likely to be low and losses very low. I'd guess a low single digit percentage of your savings overall.