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How to boost the Coventry’s 3% ISA to 4%

Paloma Kubiak
Written By:
Paloma Kubiak

Saving and investment customers of Hargreaves Lansdown can boost the 3% rate offered on the Coventry Building Society’s ISA to 4%. Here’s how.

Investment platform giant Hargreaves Lansdown has launched a £100 cashback offer for existing clients.

This includes both those who use the investment platform, and those who are part of HL Active Savings – its cash savings hub.

To get the £100 cashback, customers need to go through HL Active Savings and deposit a minimum £10,000 into the Coventry Building Society’s Limited Access Cash ISA.

Ordinarily, this product offers 3% and allows up to six penalty-free withdrawals. But as part of the HL offer which runs until 3 May, you’ll need to keep a minimum £10,000 balance in this ISA for a year to be eligible for the £100 cashback which will be credited by 24 May.

Hargreaves confirmed that the £10,000 deposit can’t be from an external ISA transfer, though existing customers can transfer an HL cash ISA to be eligible for the deal. It can only be made by debit card and it can be made either in the 2022/23 tax year or 2023/24, but not both.

Boost your ISA to 4%

Once the cashback is factored in, it means customers can earn 4% on the Coventry Building Society’s Limited Access Cash ISA rather than the 3% going direct to the mutual.

Emma Wall, head of savings at Hargreaves Lansdown, said: “We are thrilled to launch a loyalty offer for our clients, boosting the already competitive 3% Limited Access ISA rate from our key partner bank Coventry Building Society. This highly competitive ISA rate comes at a time when savers need their cash to work harder than ever, as inflation continues to bite – with an added bonus.

“The Limited Access ISA is a great way to retain flexibility over your savings – with the benefit of a higher interest rate over Easy Access, but with the ability to withdraw funds should the proverbial rainy day strike.”

Hargreaves Lansdown launched Active Savings in 2018, its ‘one-stop-shop’ solution to take the hassle out of chasing the best interest rates. It allows customers to pick and choose between different savings deals across a number of banks and building societies in one place.

It is free for customers to join as it charges partner banks and building societies a percentage of balances held.

By December 2022, it had notched up 146,000 Active Savings customers with a total of £6.3bn in assets under administration.