Hargreaves Lansdown Launches New Cash ISA at Top Rate of 4.3%
The investment platform's new easy-access cash ISA offers a variable rate of 4.3%, placing it among the leading accounts on the market.
Hargreaves Lansdown has introduced a new issue of its easy-access cash ISA, offering a variable rate of 4.3%. This new rate propels the account to the top of the cash ISA savings tables, though it is surpassed only by accounts that include a limited-time introductory bonus.
While other providers like Trading 212 and Plum offer higher headline rates, these include significant boosts for the first 12 months. Trading 212's headline rate is 4.63%, but this includes a 1.03% boost, leaving an underlying rate of 3.6%. Plum's rate stands at 4.62%, which incorporates a 2.08% boost, meaning the rate drops to 2.54% after the initial year.
These boosted rates are often exclusive to new customers and require savers to actively switch accounts when the introductory period ends. For those who have already utilized such offers or prefer a provider without these temporary incentives, Hargreaves Lansdown's new deal presents a competitive option.
Hargreaves Lansdown's Offering
Hargreaves Lansdown, primarily known as an investment platform, also provides savings accounts. The 4.3% cash ISA is its own product, developed in partnership with Shawbrook Bank. Savers should note that this ISA is not flexible, meaning withdrawals cannot be replaced without reducing the Isa allowance for the tax year. Both Trading 212 and Plum offer flexible Isas.
Additionally, direct transfers into this specific Hargreaves Lansdown cash ISA are not permitted. Funds must first be transferred to a stocks and shares ISA before being moved to the cash ISA. This process requires opening the cash ISA with a minimum of £1, which could be an issue for individuals who have already maximized their annual Isa allowance.
Security and Alternatives
Deposits in the Hargreaves Lansdown cash ISA are protected by the Financial Services Compensation Scheme (FSCS) up to £120,000 per individual bank. It is important for savers to be aware that this limit applies to the total amount held with Shawbrook Bank, not per account.
For savers seeking a guaranteed rate, Coventry Building Society offers a fixed-rate Isa at 4.6%, requiring a minimum deposit of £1. A two-year fixed Isa from Hodge Bank offers a rate of 4.66%, with a minimum deposit of £1,000.