In this independent review, we take a look at Santander's Investment Hub which allows beginner investors to invest with a well-known high street bank. Santander is a Spanish bank that has been around since 1857, and it first entered the UK market in 2004.
We take a look at the investment service's main features, pros, cons, and fees to help you decide whether it's the right choice for you. We also explore alternatives such as Barclays Smart Investor, AJ Bell Dodl*, and Interactive Investor*.
What is Santander Investment Hub?
Santander's Investment Hub could work well for people who wish to invest using a popular high-street bank. More than 250,000 people have invested with Santander, and it currently has around £6.4 billion invested via its Investment Hub. The Investment Hub has also won several awards for its service, including the 2022 Moneyfacts Award for the Best Stocks & Shares ISA Provider.
The Investment Hub offers a range of ready-made funds for passive investors, as well as more than 900 funds for those who wish to build their own portfolio. You can invest via a Stocks & Shares ISA if you want the benefit of a tax-free wrapper, and investments can start from as little as £20 a month. Features like the Digital Investment Adviser which offers personalised financial advice via an online service could make this platform an attractive option for beginners.
What are Santander Investment Hub's key features?
- Start investing with as little as £20 a month or choose the £100 lump sum option
- Monitor your investments via the mobile app, or browser
- Choose from five ready-made funds including a higher-risk sustainable option
- Select your own investments from 900+ funds
- Invest in a General Investment account, Stocks & Shares ISA or Santander Personal Pension
- Access online advice through the Digital Investment Adviser
- Receive individual advice via the Person-to-Person Advice service
- Earn 2.20% AER on any money held as cash across your accounts
- Pay between 0.10% to 0.35% management fees depending on how much you invest
What products and services does Santander Investment Hub offer?
Santander Investment Hub offers a range of products for beginner investors. We explore the core products below.
Accounts you can hold with Santander Investment Hub
With Santander's Investment Hub, you can invest in a Stocks & Shares ISA, a Personal Pension Account and an Investment Account. You can have a Cash Only account too. Here is an overview of what these options look like.
- Stocks & Shares ISA - A tax-efficient wrapper allowing you to invest up to £20,000 per year tax free. You can also hold uninvested cash within this account.
- Personal Pension Account - A self-invested personal pension (SIPP) where you can invest in the funds available via the hub and receive tax relief. You can also hold uninvested cash in this account.
- Investment Account - A separate account where you can invest outside of a tax wrapper. This could work well if you've maxed out your annual tax-free allowances.
- Cash Only Account - This account is designed to hold funds you intend to invest or funds you're planning on using to cover your hub and fund charges.
You can choose to open all four types of accounts if this fits with your investment needs, but you must ensure that you have at least £100 invested in each account. Each fund you invest in also requires a minimum investment of £100 per fund. Beyond this, the minimum investment is £20 per month per fund for regular payments such as direct debits.
Savings and Investment Calculator
The Savings and Investment Calculator is a simple, free tool that allows you to compare the potential returns from investing versus putting your money in a savings account.
Starting with an initial sum you can then add monthly contributions as well as set a time period up to 20 years. In the image below, we started with a figure of £1,000 with a monthly savings contribution of £100 and the aim to save for 5 years.
The calculator returned a potential final figure of £7,660 if the money was put in savings, versus a potential final figure of between £6,546 and £9,471 if the money was invested. Of course, this is based on several assumptions the projected returns might not apply to you and so the amounts shown are for illustrative purposes only.
You can play around with the calculator for free via the investment hub without having to create an account first. It could be helpful to get you thinking about whether you should save or invest your spare cash.
Digital Investment Adviser
If you're planning on investing less than £20,000 but want some form of online investment advice, you can use the Digital Investment Adviser feature to help you decide whether investing is right for you.
This is a digital-only experience that takes around 25 minutes to complete. You will be guided through a series of questions about your financial situation and what your investment goals are. You'll also answer a few scenarios to help gauge your attitude towards investment and risk. Plus, you'll be provided with an investment forecast based on your attitude to risk to help you see how much you could potentially earn if you invested.
If you like what you see, you'll be able to purchase a personalised suitability report for £20, which will include information on your attitude to risk as well as recommended funds to invest in to meet your goals.
Person-to-Person Advice
This service is better suited to investors who are planning on investing more than £20,000 but want the peace of mind of financial advice. The service offers personalised advice that looks at your full financial information including your goals and attitude to risk. You also get to speak with a human, i.e. one of Santander's Financial Planning Managers but this is reflected in the higher price of the service.
The advisor can meet you in the branch, or speak via the phone or video chat. They will provide advice on what Santander funds to select to create a mix of assets that suit you and your goals personally. A personalised report will be prepared with recommendations on what to invest in as well.
Costs for this service start from £500 if you choose to proceed with the investments, but you will be made aware of any fees before agreeing to proceed. The advisors will also set up your investments for you if you agree to proceed. It is important to understand that this type of advice is restricted, rather than whole of market. It means you will only receive advice on Santander funds so if you would prefer an independent advice service that has access to the whole of the market then you should seek independent financial advice. VouchedFor* is a website that lets you find and compare local independent financial advisers. Read our independent VouchedFor review for more information.
What can you invest in with Santander Investment Hub?
Santander Investment Hub works well if you want to invest in ready-made funds or pick your own funds. However, if you want to invest in individual shares or more complex and volatile instruments like CFDs, you may need to look elsewhere.
Santander Multi-Index Funds
Santander's Multi-Index Funds are a great option for beginner or passive investors who want to invest in a diversified fund across a wide range of sectors. You can use the Digital Investment Adviser for recommendations on the right ready-made fund for you based on your risk profile.
There are four ready-made funds in total, aptly named Fund 1, Fund 2, Fund 3, and Fund 4. Fund 4 represents the highest-risk fund, while Fund 1 represents the lowest-risk fund. The exact makeup of each fund will vary as it is actively managed. Here's a quick overview of what's on offer if you choose to go down this route:
- Santander Multi Index Fund 1 - This is a lower-risk investment (rated 4 out of 7 on the risk and reward profile). 65% to 85% is made up of bonds, 10% to 30% is made up of company shares, and up to 10% is in commodities. Up to 15% could be invested in non-developed markets. Ongoing charges are set at 0.34% per year.
- Santander Multi Index Fund 2 - This is a lower to medium-risk investment fund (rated 4 out of 7 on the risk and reward profile). 50% to 70% is made up of bonds, with 30% to 50% in company shares, and up to 10% in commodities. Up to 20% could be invested in non-developed markets. Ongoing charges are set at 0.37% per year.
- Santander Multi Index Fund 3 - This is a medium-risk investment fund (rated 4 out of 7 on the risk and reward profile). 50% to 70% is made up of company shares, 30% to 50% in bonds, and up to 10% in commodities. Up to 25% could be invested in non-developed markets. Ongoing charges are set at 0.41% per year.
- Santander Multi Index Fund 4 - This is a medium to higher risk fund (rated 5 out of 7 on the risk and reward profile). Approximately 60% to 90% will be invested in company shares, while 10% to 40% will be invested in bonds, with up to 10% in commodities. Up to 30% of your funds could be invested in non-developed markets. Ongoing charges are set at 0.49% per year.
The table below shows the performance of Santander's multi-index funds over the last five years.
| Fund name | 2019 | 2020 | 2021 | 2022 | 2023 |
| Santander Multi Index Fund 1 | +10.1% | +4.9% | +0.5% | -16.3% | +7.4% |
| Santander Multi Index Fund 2 | +11.4% | +5.0% | +3.0% | -13.6% | +8.0% |
| Santander Multi Index Fund 3 | +13.8% | +4.0% | +6.6% | -10.9% | +8.9% |
| Santander Multi Index Fund 4 | +15.3% | +2.8% | +9.6% | -8.2% | +8.8% |
As you can see, most ready-made funds you can invest in with Santander are medium-risk. Ongoing charges range from 0.34% to 0.49% per year. Higher-risk funds are more exposed to non-developed markets than lower-risk funds, on average.
Mutual funds
There are approximately 950 funds to choose from on the Santander Investment Hub, including 34 funds managed by Santander Asset Management, and around 900 funds from other leading fund managers.
You'll be able to view the key information, past performance, and risk score via the hub. You'll also be able to choose sustainable investment options if this is of interest to you.
Sustainable investing
Santander offers around 40 sustainable funds to choose from, sometimes referred to as 'socially responsible' or 'ethical' funds. The goal of these investments is to support people and the planet while also growing your money. The funds included might focus on fighting inequality or tackling climate change and investing in renewable energy. Industries like tobacco and coal might be excluded if they don't align with socially responsible investing concepts.
Some of the 40 funds on offer include:
- Fidelity Sustainable European Equity "W" (GBP) ACC
- Pimco Emerging Markets Bond ESG "INS" (GBPHDG) INC
- Santander Prosperity Fund
You can explore all of the sustainable investing funds on offer via the Santander Investment Hub.
Below, we cover Santander's sustainable ready-made fund for investors looking for diversification and sustainability without the need to put together their own portfolio.
Santander GO Global Equity ESG
The Santander GO Global Equity ESG is Santander's sustainable ready-made fund. This is a higher-risk fund which was launched back in 2020 and has a 0.76% annual fund charge.
At least two-thirds of this will be invested in equities of companies around the world, but the focus is on mature economies. Convertible bonds and derivative instruments such as options and futures could make up a proportion of this fund too. Some of this fund's current top holdings include Microsoft, Apple, Visa, and Amazon as well as NVIDIA.
The table below outlines the fund's annual performance to date.
| Year | Performance |
| 2020 | +5.93% |
| 2021 | +28.66% |
| 2022 | -9.61% |
| 2023 | +18.22% |
It's worth keeping in mind that, as with any investment, past performance isn't an indicator of future performance.
What are the fees for investing via the Santander Investment Hub
Santander Investment Hub charges an annual management fee to cover your use of the platform. The more you invest, the lower the fee will be as long as you hit certain thresholds. The table below provides an overview of the platform fees based on the amount you've invested.
| Amount invested | Fee |
| Up to £50,000 | 0.35% |
| From £50,000 to £500,000 | 0.20% |
| £500,000+ | 0.10% |
So, for example, if you invest £100,000 through Santander Investment Hub, you'll be charged 0.35% on the first £50,000 and then 0.20% on the second £50,000. The fees are payable twice a year and taken every six months on May 1 and November 1 of each year.
These fees do not include any ongoing fees as these are charged by the fund managers for managing your investment funds. You can find these underlying fees in the Key Investor Information Document and they tend to differ for each fund. These tend to start from around 0.25% but can be as high as 1.49%.
There are also separate fees if you choose to opt for the investment advice service with Santander. The Digital Investment Advice service costs £20, but if you select the person-to-person advice, then the costs for this start from £500.
Does Santander Investment Hub pay interest on cash held in its accounts?
Santander Investment Hub does pay interest on cash held in its accounts. You'll get 2.20% AER on any money held as cash across your cash only, Stocks & Shares ISA, investment account, and personal pension account. This is better than comparable platforms like Barclays Smart Investor which only pays 1.65% AER/gross per year on most of its accounts. On the other hand, non-high street investment platforms like Bestinvest* offer up to 4.45% on uninvested cash held with them.
How to open a Santander Investment Hub account
You can create a Santander Investment Hub online by filling out a simple form. You're eligible if:
- You're a UK resident
- You're at least 18 years old
- You have a National Insurance number (you'll need this to apply)
The form includes three sections comprising questions about your contact details, your identity, and your marketing preferences. Once you complete the form, you'll be asked to review it and confirm that the information you've filled out is accurate.
The form takes under five minutes to complete and asks for basic information about your identity including your name, nationality, date of birth, and occupation. You'll need to provide your address as well.
Once you're approved, you'll be able to access the Investment Hub, and decide whether you want to open a Stocks & Shares ISA or Investment Account. You'll also be able to browse some of the available funds on the platform.
If you're new to Santander, you may need to wait a few days to receive your login details before you can start investing. However, as far as investment platform application processes go, Santander's is efficient and painless.
What are the pros and cons of Santander Investment Hub?
Below, we outline the pros and cons of investing with Santander.
Pros
- Five ready-made portfolios to choose from for passive investors
- 900+ funds to choose from if you want to build your own portfolio
- Online advice via the Digital Investment Adviser
- Can earn 2.20% AET interest on uninvested cash
Cons
- The interest rate on uninvested cash is relatively low compared competitors, including Bestinvest* which pays 4.45%
- Can't invest in individual shares or other types of assets
- Not as many learning resources as other platforms
- Low Trustpilot reviews that imply poor customer satisfaction with the service
Santander Investment Hub customer reviews
Santander Investment Hub has its own Trustpilot page and an overall review of 2.4 out of 5.0 based on just 7 reviews. Approximately 14% rated the investment service as 5 stars, while 86% gave it 1 star. Those who gave it 5 stars said the customer service was great, but the reviews that gave it 1 star complained about technical issues with accessing their account.
Santander, as a whole, has a 1.4 out of 5.0 score on Trustpilot based on more than 7,000 reviews. Approximately 85% of all reviewers gave it 1 star, while 8% gave it 5 stars. Those who gave it 1 star complained about issues with incoming payments being blocked and delayed, as well as issues with receiving switching offer bonuses. Those who gave it 5 stars raved about the excellent customer service both on the phone and in-branch.
Overall though, Santander's Trustpilot score is low and so investors may want to look into alternatives before deciding whether this is the right investment service for you.
Santander Investment Hub alternatives
Below, we outline three Santander Investment Hub competitors that you may want to consider before taking out an account with Santander.
Interactive Investor
Interactive Investor*, like Santander, offers ready-made funds as well as the opportunity to build their own portfolios. With Interactive Investor, you can invest in funds as well as shares, offering more than 40,000 investment options in the UK and globally.
Fees, unlike with Santander, are flat. Investments up to £50,000 attract a flat monthly fee of £4.99 and beyond this, investors are changed £11.99 a month to use the platform. With Santander, you'd pay £175 per year on a balance of £50,000, whereas with Interactive Investor, you would pay around £60. There are additional charges for making trades, but it could still work out cheaper for larger investments.
The platform also offers interest on cash held in its various accounts. The exact amount of interest varies depending on the amount of cash you hold with them and the type of account where your cash has been deposited, but you can expect to earn between 2.02% AER and 4.85% AER on your funds, which is generally better than what you would get with Santander.
We take a closer look at this investment platform in our independent Interactive Investor review.
AJ Bell Dodl
AJ Bell Dodl* is an app-only investment platform with low platform fees of just 0.15% per year (Santander's fees range from 0.10% to 0.35%). However, while AJ Bell Dodl offers 36 different funds, Santander offers more than 900. That being said, with AJ Dodl, you can invest in individual shares as well as funds, which may appeal to investors looking to diversify.
As with Santander, you can also open a Stocks & Shares ISA to benefit from a tax wrapper. There is also a general investment account on offer, as well as a pension.
AJ Bell Dodl has an overall score of 4.4 out of 5.0 on independent review site Trustpilot based on more than 160 reviews. You can find out more about this platform in our independent AJ Bell Dodl review.
Barclays Smart Investor
Barclays Smart Investor is Santander Investment Hub's closest competitor. Both are investment services provided by popular high-street banks. Like Santander, Barclays Smart Investor offers ready-made funds based on your risk level. Both offer the opportunity to earn interest on uninvested cash, but Barclays offers a lower interest rate than Santander.
Fees-wise, the two platforms are fairly similar in their offering too. Santander's management fees are higher (between 0.10% to 0.35%) compared to Barclays (0.05% to 0.25%), but Barclays ready-made funds cost 0.45% which is on the higher end compared to Santander.
Both options also have relatively poor Trustpilot reviews, which seems to be the case with many high street providers. We take an in-depth look at this service in our independent Barclays Smart Investor review.
Santander Investment Hub: Should you use it?
Santander could be well suited to beginner investors looking to invest primarily in funds. If you're looking to build your own portfolio, you can choose from more than 900 different funds and if you're looking for a diversified, ready-made portfolio, Santander's Multi-Index Funds could be right for you. Santander also offers tailored financial advice to some customers, which could be valuable if you're new to investing.
While Trustpilot scores for this investment platform are low, this isn't unusual for high street providers that generally have lower Trustpilot scores than challenger banks and other investment platforms.
Some good alternatives to consider include AJ Bell Dodl*, which has low fees and a range of ready-made funds, as well as Interactive Investor* which offers a wider range of assets and a flat pricing structure. If you're looking for a high street bank to compare against, Barclays Smart Investor could be a good option. If you are simply looking for the best and cheapest way to invest, then check out our article 'Best and Cheapest investment Platforms'. All in all, Santander Investment Hub offers a decent option for beginner or passive investors wanting to invest in funds rather than shares.
If a link has an * beside it this means that it is an affiliated link. If you go via the link Money to the Masses may receive a small fee which helps keep Money to the Masses free to use. But as you can clearly see this has in no way influenced this independent and balanced review of the product. The following link can be used if you do not wish to help Money to the Masses - Interactive Investor, AJ Bell Dodl.
