Easy access savings accounts have recently been growing in demand, as cost of living pressures have left many needing increasing and instant access to savings. Topping its last leading interest rate of 3.4 percent, wealth app Chip is now offering savers a new AER of 3.55 percent on its Instant Access Saver.
Founded in late 2017, Chip is an investment and savings app that people can connect their current account to through open banking.
Offering a variety of different savings accounts, the app, which is powered by Clearbank, has amassed over 500,000 users since its launch and all money deposited is protected by FSCS.
Instant Access savers can now, however, benefit from an increased Annual Equivalent Rate of 3.55 percent on deposits up to £250,000.
The new rate tops its 3.4 percent AER announced in February, which at the time was the highest easy-access savings rate since 2009.
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The account can be opened with a minimum of £1 and withdrawals are permitted without penalty. As it’s an app-based account, savers must be comfortable opening and managing it online via mobile.
To give an example of the interest the pot can amass at its current rate, a £40,000 deposit could earn a potential £1,420.
Simon Rabin, CEO of Chip said: “We’re delighted to yet again lead the market with this historic rate move to 3.55 percent AER, putting us well ahead of our competition and lightyears ahead of legacy banks.
“It’s interesting to note that all of the leaders in the space are nimble fintechs, with legacy banks clearly resting on their laurels.
“It’s an indication that our sector still has a lot of room for growth and we’re ready and able to bring consumers things that their banks aren’t delivering.
“The latest rise – only three weeks since we hit an industry high since 2009 with 3.4 percent – highlights our commitment to always keeping the rate on our Chip Instant Access Account highly competitive.
“It might not always be so far ahead of all the alternatives like it is now, but we aim to keep the rate pretty damned amazing.”
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The account can be opened with just £1 and interest is calculated daily and applied annually on March 31. Withdrawals are permitted on two days per year based on the anniversary of account opening, plus closure at any time.
Zopa’s Smart Saver is offering an AER of 3.34 percent. The account can be opened with £1 and interest is applied monthly.
Zopa allows customers to open personalised pots, however, a maximum of £85,000 can be deposited to the account in total before account holders are no longer allowed to submit any more cash.
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