UK investment platform Hargreaves Lansdown (HL) has launched the HL Money Market Fund in partnership with BNY Investments, responding to rising demand for accessible cash-management investments. The fund offers an expected yield of 3.95% at launch and an ongoing charge of 0.06%, which HL describes as the lowest among UK retail money market funds. Available exclusively to HL clients, it invests in short-term debt issued by governments, banks and companies with strong credit ratings. The launch comes as UK investors increasingly explore alternatives to traditional savings accounts.
Key Overview
- Fund name: HL Money Market Fund.
- Expected yield: 3.95% at launch.
- Ongoing fund charge: 0.06% annually.
- Investment manager: BNY Investments, appointed by HL.
- Access: Exclusively available to Hargreaves Lansdown clients.
- Liquidity: Same-day settlement for eligible transactions, with next-day withdrawals under the stated arrangements.
- Market context: HL reported a 35% year-on-year increase in clients holding money market funds.
Hargreaves Lansdown Introduces a New Money Market Fund
Hargreaves Lansdown has introduced the HL Money Market Fund as demand for money market investments continues to rise among UK savers and investors. The launch, announced on October 21, 2026, gives the platform’s clients access to a cash-focused investment option designed to combine competitive expected returns with relatively quick access to funds.
The fund is being launched in collaboration with BNY Investments, which will manage the portfolio on HL’s behalf. Its investments will consist of short-term debt issued by governments, banks and companies with strong credit ratings.
According to Hargreaves Lansdown’s announcement, the fund has an expected yield of 3.95% at launch and an annual ongoing charge of 0.06%. HL says this is the lowest ongoing charge in the UK retail money market fund market.
The fund is available exclusively through the HL platform and can be held across eligible investment accounts, including Stocks and Shares ISAs, Lifetime ISAs, Junior ISAs, self-invested personal pensions (SIPPs) and general investment accounts. Applicable platform and dealing charges may also apply, meaning investors should assess their total costs rather than considering the fund charge alone.
Low Fees and Access Aim to Attract Investors
The fund’s pricing is central to its appeal. An ongoing charge of 0.06% equates to 60 pence annually for every £1,000 invested, based on the fund’s stated charge and before any additional account or transaction fees.
The expected yield of 3.95% is intended to make the fund competitive with conventional cash savings options. However, this is an expected return at launch, not a guaranteed rate. Money market yields can change as short-term interest rates and the returns available on underlying investments move.
HL is also offering access arrangements designed for investors who may need to move money between investments or withdraw cash. Eligible sales made before 9 a.m. can receive same-day settlement within an HL account, while withdrawals are generally available the following day under the fund’s stated arrangements.
The initial offer period runs from October 21 to November 4, 2026, with units available at a fixed £1 price during that period. The fund’s first income payment is scheduled for December 31, 2026, with income calculated daily and paid monthly.
Although money market funds are generally considered lower-risk investments, they are not equivalent to bank deposits. Their value can fluctuate, and returns are not guaranteed. Investors should review the fund’s documentation and understand the distinction between investment products and protected savings accounts.
Rising Demand for Money Market Funds in the UK
HL’s launch comes amid growing interest in money market funds as investors seek ways to manage cash without leaving all their savings in conventional deposit accounts.
The platform reported an increase of 35% over the past year in the number of its clients holding money market funds. It also said that more than 25 times as many HL clients invest in these funds now as did five years ago.
Industry figures reinforce this trend. Retail investors placed a record £6.9 billion into money market funds during 2025, while a further £3.8 bn flowed into the sector during the first half of 2026.
HL estimates that approximately more than £600 bn of excess cash is held in the UK. The platform also reported that the four largest banks offered an average instant-access savings rate of 0.95% as of October 19, 2026.
These figures help explain why providers are competing to offer accessible investment alternatives. Nevertheless, comparing a money market fund’s expected yield with a bank’s savings rate requires care because the products have different risk, protection and charging arrangements.
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BNY Investments to Manage the Portfolio
Under the arrangement, HL retains overall responsibility for the fund while BNY Investments acts as the delegated investment manager. This brings together the platform’s distribution network and BNY’s investment management capabilities.
The portfolio will focus on short-term debt instruments issued by governments, banks and companies with strong credit ratings. Such securities are commonly used by money market funds because they are designed to support short-term cash management and liquidity.
The strategy does not eliminate investment risk. Issuers can experience financial difficulties, market conditions can change and the fund’s yield may fall when short-term interest rates decline.
The fund is intended for investors who want a relatively conservative place to hold money for shorter periods, including those waiting to reinvest proceeds or manage upcoming cash needs. It may also appeal to investors seeking to diversify how they hold liquid assets within an investment portfolio.
Outlook
The HL Money Market Fund adds another option to the UK’s expanding cash-management market. Its low stated fund charge, expected launch yield and access arrangements could appeal to investors seeking alternatives to traditional savings accounts.
Future demand will depend on how the fund’s yield compares with competing products, how interest rates evolve and whether investors value the convenience of keeping cash within the HL platform. The introduction of new Cash ISA rules in April 2027 could also influence interest in money market funds held through Stocks and Shares ISAs.
Ultimately, the fund’s appeal will depend on its realised returns after all applicable charges, the quality of its underlying investments and how effectively it meets investors’ liquidity needs. Its expected yield should not be treated as guaranteed, and investors should consider the risks before investing.
Frequently Asked Questions
1. What is the HL Money Market Fund?
It is a money market fund launched by Hargreaves Lansdown in partnership with BNY Investments. It invests in short-term debt issued by governments, banks and companies with strong credit ratings.
2. What is the fund’s expected yield and annual charge?
The fund’s expected yield at launch is 3.95%, while its ongoing annual fund charge is 0.06%. The yield can change and is not guaranteed, and additional platform or dealing charges may apply.
3. Who can invest in the HL Money Market Fund?
The fund is available exclusively to Hargreaves Lansdown clients through eligible investment accounts, including Stocks and Shares ISAs, SIPPs and general investment accounts.
4. Is the HL Money Market Fund risk-free?
No. Although money market funds are generally considered lower-risk investments, their value can fluctuate and returns are not guaranteed. They are investments rather than bank deposits.
SOURCES: Trustnet | Good Money Guide | Crane Data | Portfolio Adviser
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