Hargreaves Lansdown, one of the UK's largest investment platforms, has introduced a new cashback offer designed to attract new savers to its Active Savings account. The promotion promises up to £750 for customers who deposit new money into the platform, but the ultimate benefit for consumers will depend on the competitiveness of the interest rates offered through the service.
The cashback structure is tiered, rewarding larger deposits more significantly. New customers depositing between £10,000 and £24,999 will receive £50. This increases to £150 for deposits of £25,000-£99,999, £300 for £100,000-£249,999, and the maximum £750 for those depositing £250,000 or more. To qualify, funds must be new to Hargreaves Lansdown, deposited into an Active Savings account, and remain on the platform for a minimum of six months.
Hargreaves Lansdown's Active Savings platform acts as a marketplace, allowing users to choose from a range of savings accounts offered by various banks and building societies through a single online portal. This includes easy-access, notice, and fixed-term accounts. The platform aims to simplify the process of finding competitive rates by consolidating options, potentially saving customers the hassle of opening multiple accounts with different providers.
While the cashback is an attractive incentive, consumers are advised to carefully evaluate the total return, considering both the one-off cashback payment and the ongoing interest rates. The savings market remains dynamic, with various providers frequently adjusting their rates. It is crucial for savers to compare the rates available through Active Savings with those offered directly by other banks and building societies across the wider market to ensure they are getting the best possible deal for their money.
The offer is available for new money transferred into an Active Savings account by 30th June 2024. Cashback will be paid directly into the client's account within 60 days of the six-month holding period ending, provided the eligibility criteria are met. This type of promotion often aims to lock in customer funds for a set period, encouraging engagement with the platform beyond the initial deposit.