Hargreaves Lansdown offers £100 bonus for opening cash Isa

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Investment platform Hargreaves Lansdown is offering £100 cashback to clients who open a new cash Isa.

The Limited Access Cash Isa* account pays 3 percent interest and is available through Hargreaves Lansdown’s Active Savings platform. The money is held by Coventry Building Society.

The account allows up to six withdrawals per year at no cost, and depositors must deposit a minimum of £10,000 to qualify for the £100 bonus.

Adding the cash bonus to the interest payments means that someone depositing £10,000 into the account would effectively get a rate of 4 per cent.

They would earn £400 in interest over a year – if the rate stayed the same.

Those who want to take full advantage of their Isa allowance this year have until April 6 to get everything they need in the tax-free shelter for savings and investments.

Hargreaves Lansdown’s £100 offer is available to those who already have an investment account or active savings account with the investment platform.

However, anyone who opens an investment or savings account just before applying for the cash Isa deal can still take advantage of the £100 offer.

Once set up, new customers must open the Limited Cash Isa deal before May 3rd and deposit £10,000 to receive the £100 bonus.

However, anyone looking to transfer their Isa funds from another provider should be aware that the offer is only eligible for those using their 2022/23 or 2023/24 allowance.

And savers can’t just add up and withdraw £10,000 as soon as the £100 comes in. They must maintain the £10,000 minimum balance for a full year.

Emma Wall, Head of Savings at Hargreaves Lansdown said: ‘We are delighted to be launching a loyalty offer for our clients, increasing the already competitive 3 per cent Limited Access Isa rate from our main partner bank Coventry Building Society.

“This highly competitive Isa rate comes at a time when savers need their money to work harder than ever while inflation continues to stall – with an added bonus.

“The Limited Access Isa is a great way to maintain flexibility over your savings – with the benefit of a higher interest rate than Easy Access, but with the option to withdraw money should the proverbial rainy day strike.”

Should you use a cash Isa?

ISAs are attractive to taxpayers because all interest and capital gains are tax-free. Find out here which Isa account suits you best.

The tax-free Isa allowance of £20,000 does not carry over to the next tax year, so it is always important to maximize contributions each year for those who are able.

Savings interest rates have risen in recent years, as a result of which more are now being dragged into the savings network.

Whether it makes sense for savers may depend on their tax bracket and how much interest they already earn from savings in non-ISA savings accounts.

Most savers receive a personal allowance with which they can earn tax-free interest up to a certain amount on a regular savings account.

The fee is £1,000 for base rate taxpayers and £500 for higher rate taxpayers. Those liable for supplements do not receive a supplement.

Someone looking to house their rainy day fund in a non-Isa savings account isn’t going to do much better than 3 percent right now, unless they resort to fixed-rate savings and surrender access to their cash.

The Rainy Day account from Yorkshire BS pays 3.35 per cent, but this is only paid on the first £5,000 and withdrawals can only be made on two days a year.

>> View the best ‘non-isa’ easily accessible savings rates

Should you sign up for the Hargreaves Lansdown deal?

While the Hargreaves Lansdown deal is a restricted access account, it is quite generous in that depositors can withdraw funds six times a year without penalty.

Many limited-access deals only allow two or three withdrawals per year.

Coventry Building Society also advertises one 2.41 percent easy access deal* on the Hargreaves Lansdown savings platform, however, this does not qualify for the £100 bonus.

Compared to the broader market, the 3 percent limited access account is really good.

The best easily accessible Isa deals are currently offered by Swansea Building Society and Bath, paying 3.25 per cent and 3.19 per cent respectively. However, customers must live in Wales or Bath to take advantage of this.

Aside from that, Shawbrook Bank also offers an easy-access deal that pays 3.01 percent, while Cynergy Bank and Harpenden Building Society equals the Hargreaves Lansdown limited-access deal — both pay 3 percent.

Cynergy and Shawbrook’s account offers unlimited convenient access, while Harpenden’s deal limits depositors to three withdrawals per year.

However, there’s no £100 bonus on offer, meaning anyone who can commit £10,000 is still better off opting for Hargreaves Lansdown.