Bank offers market-leading interest rate on easy access saver

With the cost of living pressures leaving many needing increasing and instant access to savings, easy access savings accounts have been growing in demand. These accounts are typically more flexible with withdrawals, and Chip’s saver is offering a market-leading rate of return.

Chip, which was founded in late 2017, is an investment and savings app that people can connect their current account to through open banking.

With a number of different savings accounts on offer, the app, which is powered by Clearbank, has amassed over 500,000 users since its launch and money deposited is protected by FSCS.

Instant Access savers can benefit from an Annual Equivalent Rate (AER) of 3.4 percent from a minimum deposit of £1.

Interest is calculated daily and paid monthly on the fourth working day. Up to £250,000 can be invested overall and withdrawals are permitted free of charge.

As it’s an app-based account, savers must be comfortable opening and managing it online via mobile.

But while Chip is currently topping the leaderboard, the competition isn’t too far away.

Yorkshire Building Society’s Rainy Day Account (Issue 2) falls just behind with an AER of 3.35 percent.

This account offers a competitive, two-tiered variable interest rate and savers can get started with as little as £1. The 3.35 percent rate is applied to balances up to £5,000, while a 2.85 percent rate is applied to balances over £5,000.01.

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Withdrawals are permitted on two days per year based on the anniversary of account opening, plus closure at any time.

HSBC’s Online Bonus Saver places third with an AER of 3.25 percent.

Interest is calculated daily and applied to the balance monthly. The 3.25 percent rate is awarded on up to £10,000 of the balance every month a withdrawal is not made, while 1.75 percent will apply to figures over £10,000.

While this is an easy access account, meaning savings can be withdrawn, it isn’t flexible and on the occasion that a withdrawal is made, a 1.2 percent standard rate will be applied to that month instead.

Another app-based bank, Zopa, has also placed high in the top tables of easy access savers. Offering an AER of 3.21 percent, Zopa’s Smart Saver offers slightly more flexibility to account holders.

There is no minimum deposit requirement and interest can be paid away or compounded, and savers can open an account using the Zopa app. Withdrawals are permitted without any penalties and up to £85,000 can be invested.

Commenting on the market, Rachel Springall, finance expert at, said: “Savings rates rose across the market month-on-month showing positive signs of provider competition.

“The consecutive Bank of England Base Rate rises, coupled with competition among challenger banks, has led to both the average easy access and notice rates hitting their highest levels in more than 14 years.”

Ms Springall said that the number of accounts overall for savers has also grown, seeing its biggest month-on-month rise since March 2022 and choice now rests at the “highest count” since November 2022.

She added: “These are all encouraging signs for the months ahead, particularly as we edge closer to a new tax year.”

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