Savers have the opportunity to earn up to £750 in cashback by opening a savings platform account with Hargreaves Lansdown, though there is a significant condition attached. To receive the maximum payout, a deposit of at least £250,000 is required.
Cashback Tiers and Requirements
The cashback offer is available to new customers who open a Hargreaves Lansdown Active Savings account before July 30. The amount of cashback depends on the deposit amount:
- Deposits between £10,000 and £19,999 earn £20 cashback.
- Deposits between £20,000 and £49,999 earn £40 cashback.
- Deposits between £50,000 and £74,999 earn £100 cashback.
- Deposits between £75,000 and £149,999 earn £150 cashback.
- Deposits between £150,000 and £249,999 earn £300 cashback.
- Deposits of £250,000 or more earn £750 cashback.
Customers must deposit their money within 60 days of opening the account, and the cashback is expected to arrive by December 31. However, the cashback is not applied automatically; savers need to fill out an online form or contact Hargreaves Lansdown's customer service team to claim it.
About the Active Savings Account
The Hargreaves Lansdown Active Savings Account is an online cash savings platform that allows users to manage multiple savings and cash ISA products from over 30 partner banks and building societies. The cashback offer applies only to regular easy-access and fixed savings accounts, not to cash ISAs.
Interest Rates Available
For easy-access accounts, the top rate through Active Savings is 3.95% variable, offered by Whiteaway Laidlaw. Alternatively, savers can earn up to 4.55% on up to £20,000 with Tembo, which includes a 3% variable rate plus a 1.55% bonus for one year, or 5% variable on up to £3,000 with Cahoot. For larger sums, Chase offers 4.5% for new customers, comprising a 2.25% variable rate plus a 12-month 2.25% bonus.
For one-year fixed-rate accounts, the top rate via Active Savings is 4.55%, offered by the National Bank of Kuwait. However, elsewhere, MBNA provides a rate of 4.85% for a one-year fix.
Tax Considerations
Basic-rate taxpayers can earn up to £1,000 a year in savings interest without paying tax; after this threshold, a 20% tax rate applies. Higher-rate taxpayers pay 40% tax on savings interest exceeding £500 per year. Additional-rate taxpayers are taxed at 45% on all savings interest. Interest earned within an ISA account is tax-free.
