Hargreaves Lansdown (HL) has become the first platform to offer fixed-term cash ISAs, which will sit alongside its easy access and limited access options.

The firm said this means that clients can now spread their cash ISA allowance across multiple products.

The fixed-term cash ISA is provided by Coventry Building Society over a one-year term and offers clients a rate of 4.8%. Active Savings will continue to focus will continue to focus on expanding the ISA proposition by rolling out additional products from its existing bank partners in the first half of 2024.

HL Active Savings is the only cash savings platform where you can spread allowances across multiple ISAs, giving savers the freedom to bucket their ISA savings, whilst gaining easy access to cash during the cost of living crisis and the ability to lock away the rest with a strong interest rate.

The announcement comes alongside the news that Sainsburys Bank has joined Active Savings, taking the number of banking partners to 20.

Head of active savings at HL, Mark Hicks, said: "Taking advantage of Cash ISAs is becoming increasingly important for clients as interest rates have risen and as more savers start earning more than the tax-free allowance (£1,000). By providing the full suite of Cash ISA products (fixed term, easy access and limited access), clients can now have more flexibility when managing their Cash ISAs alongside their existing savings portfolio, whilst also having the flexibility to choose from multiple deposit types.

"Active Savings continues to scale its panel of bank partners and provide clients with further products to diversify their savings, at a time when there is a clear client demand for cash. With the addition of Sainsbury’s Bank, HL continues to add capacity to its Active Savings platform with established brands, which allows clients to manage their savings alongside their investment and pension portfolios.

"Banks use cash savings platforms, of which HL Active Savings is the largest retail offering in the UK, to broaden their distribution and reaching savers who are eager for the best rates. Savers are benefiting from the competition amongst providers on cash savings platforms, and amongst the highest interest rates since the financial crisis."

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