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Savers can now split their £20,000 ISA allowance between cash ISAs from multiple banks in one place on the Hargreaves Lansdown savings platform.
Hargreaves Lansdown has become the only savings platform that allows savers to split their ISA allowance between easy-access and fixed-rate ISAs via Active savings*.
Active Savings is now the only savings platform to offer cash deposits. The other major savings platforms, Flagstone and Raisin UK, do not offer them.
Because of this, until now, ISA savers have needed to go directly to providers if they wanted to open multiple types of ISA with different providers.
Savers will now be able to open easy-access, fixed-rate ISAs from multiple providers in one place at Hargreaves Lansdown Active Savings
There are six banks from which savers can choose Isas at Active Savings: Santander International, LHV Bank, Zopa Bank, Oaknorth Bank, Coventry Building Society and One Savings Bank.
Top active savings rates include an Easy Access ISA from Zopa offering 4.57 and a one-year fixed rate ISA from OakNorth bank paying 4.29 per cent.
The best easy-access Isas on This is Money’s top buying desks offer around 4.9 per cent.
Active savings* It has also become the first savings provider to offer a fixed-rate ISA with a term of less than 12 months.
Savers can get a six-month fixed-rate ISA from Santander International that pays 4.56 per cent through Ahorro Activo.
Mark Hicks, Director of Active Savings at Hargreaves Lansdown, said: “Typically the cash ISA market offers fixed terms of one year or longer, but our scale and proposition has meant we can offer exclusive shorter term fixed terms from well-known traditional banking brands.”
Cash ISAs remain one of the most popular products among UK savers right now.
Bank of England data shows £3.8bn flowed into cash Isas in July, bringing the total in Isas so far this financial year to £23.7bn, up 22 per cent on the same period a year earlier.
Hargreaves Lansdown said cash inflows into ISAs on its platform have doubled in the past 12 months and new customer numbers have tripled year-on-year.
Active Savings manages £10.6bn of savers’ cash, of which £1bn comes from cash on demand deposits.
How does FSCS protection work?
All Active Savings partner banks are authorised by the Prudential Regulation Authority (PRA) and are covered by the Financial Services Compensation Scheme.
Deposits are protected up to £85,000 by banking licence in case the bank or building society fails.
This means that in theory savers could get up to £510,000 of FSCS protection by spreading money across Isas in Active Savings, compared with £85,000 at traditional banks and building societies, because it offers access to multiple institutions and the first £85,000 within each is protected.
However, deposits over £85,000 are unlikely to be covered with the same provider.
What are the benefits of using a savings platform?
Savings platforms offer savers the ability to manage their cash savings in one place and can offer great deals and cash back rewards that boost rates.
They are essentially online savings account supermarkets, giving you access to accounts from over 60 banks and building societies in one place.
Platforms may not always offer the best rates on the market, but they have a selection of deals that are still competitive with the best on the savings boards.
The goal is to make it as easy as possible for you to make the most of your savings by allowing you to compare all the offers in one place and eliminating time-consuming research and requests to many individual providers.
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