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How can an ISA help protect your money from inflation at Hargreaves Lansdown as of July 2023?

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Eszter Z.
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Can an ISA at Hargreaves Lansdown beat inflation?

Stubbornly high inflation and negative real interest rates are causing headache for all of us. UK inflation was 9.2% in 2023 February. It also raises the question, where can savings be best shielded from inflation? For UK residents, an Individual Savings Account (ISA) here is generally a great way of growing your savings tax free.

Luckily, Hargreaves Lansdown does offer stocks and shares ISAs, so it is one of the places where your investments could weather the inflation.

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Investing in stocks and shares are a good vehicle to try to preserve the value of your money during periods of high inflation. Stocks and shares ISAs offer that better option with the usual ISA tax benefits.

If you want to compare Hargreaves Lansdown's pitch with other providers, find out which are the best brokers that offer stocks and shares ISAs in our top 5 recommendations!

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How do stocks and shares ISAs help protect your money?

Let's see why stocks and shares ISAs can help mitigate the negative effects of inflation and why you might want to consider opening a stocks and shares ISA account. Inflation can have a negative impact on your savings and investments, as it will erode the value of your cash holdings. You should try to invest as much of your money as possible during periods of high inflation.

Here are some of the main points on how stocks and shares ISAs can potentially help protect your money from inflation:

  • Higher returns: Stocks and shares ISAs invest in stocks and shares, which have the potential to provide higher returns than traditional savings accounts, especially over the long term.
  • Diversification: Investing in a variety of stocks and shares can help spread risk, which can protect your investments against market fluctuations and inflation.
  • Tax efficiency: The advantage of a stocks and shares ISA is that any gains you make on your investments are tax-free.

Investing in stocks and shares carries a degree of risk, and the value of your investments can go down as well as up. However, over the long term, a well-diversified portfolio of stocks and shares has a better chance of outperforming inflation and have provided investors with a hedge against inflationary pressures.

What about cash ISAs – you might be wondering?

If you already have a cash ISA, which is a savings account, you might want to consider transferring to a stocks and shares ISA, an investment account, as cash or fixed-rate instruments cannot compete with inflation under current market circumstances.

Stocks are shares ISAs can do better during inflation than cash ISAs, because:

  • Your returns aren't tied to any fixed interest rates as with cash ISAs, and stocks and shares ISAs could offer higher returns
  • By offering higher returns than cash ISAs, stocks and shares ISAs have a better chance at competing with inflation even if they don't necessary beat it
  • Stocks and shares ISAs carry higher risk than cash ISAs, because as with any investment, your returns depend on how your assets are doing on the market

If you want to learn more about how inflation works, check out our dedicated page hub on it.

So let's find out more about what exactly Hargreaves Lansdown offers!

Basic info about stocks and shares ISA at Hargreaves Lansdown

When it comes to investing in stocks and shares ISA in time of high inflation, it is especially important to max out your yearly allowance of £20,000 for the tax year. It is also important to diversify your portfolio. You should consider choosing a broker that offers the widest range of assets. We compared the product selection at the top brokers offering ISA, so consult our best brokers for ISA page. You might also want to consider checking if the provider has a maganed ISA, which means the broker will take care of your investments for you.

Hargreaves Lansdown snapshot
Stocks and shares ISA available
Stocks and shares ISA interest rate
Minimum ISA investment amount
Stocks and shares ISA yearly allowance
Managed ISA availability
Time to open account
1 day
Inactivity fee

For a detailed analysis of Hargreaves Lansdown services, check out our review for 2024

Stocks and shares ISA fees

When choosing a stocks and shares ISA account, you should consider the different fees a brokerage charges. To do that, see our top recommendations for brokers offering ISA.

Let's see an overview of non-trading fees at Hargreaves Lansdown and its closest competitors!

ISA related fees at Hargreaves Lansdown
Account fee
Custody fee
Inactivity fee
Withdrawal fee
Deposit fee

And here's an overview of the trading fees:

ISA related fees at Hargreaves Lansdown
US stock fee
Based on previous month's activity. 0-9 trades: £11.95 per trade; 10-19 trades: £8.95 per trade; 20+ trades: £5.95 per trade £3.99 per trade £9.95 per trade
EU/UK government bond
US Treasury bond
Fund trading fee
$0.2 $10.0 $3.8
Stamp duty fees
0 0 0.5

You might want to check Hargreaves Lansdown's trading account offers, which could also help you preserve the value of your money, albeit without the tax-benefits.

Consider the option of opening a trading account with Hargreaves Lansdown, which can offer an even wider range of products that can help you offset the negative effects of inflation, albeit without the tax benefits. Read our review of Hargreaves Lansdown to find out what markets they give access to and what trading accounts they have.

With a trading account, you are likely to be able to have access to more asset (including forex and CFDs) which could have more returns but are also riskier.

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Author of this article

Eszter Zalán
Eszter Zalán

Eszter is a former Editor and Financial Journalist for BrokerChooser. She wrote and edited BrokerChooser's content from 2021 onwards, bringing her more than a decade-long experience in journalism to the team. She has covered world affairs and several financial crises, and dove deep into SEO and coding to make BrokerChooser's content more accessible to users.

Everything you find on BrokerChooser is based on reliable data and unbiased information. We combine our 10+ years finance experience with readers feedback. Read more about our methodology.

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