Chip offers top interest rate with instant access account

Savers with Chip can get a top interest rate and easy access to their funds with the bank’s Instant Access Account.

A person can open an account with just £1 and can deposit up to £250,000 in the account.

The easy access account is “built to move with the Bank of England and reward you faster than the banks”, the group says on its website.

People can deposit and withdraw money instantly with interest calculated daily and paid on the fourth working day of each month.

With the 3.71 percent rate, if a person deposited £1,000 on the first day, they would earn £37.10 interest over the year.

Interest will be earned on any amount deposited in the account. People can set up automatic deposits into the account or make deposits at any time.

Chip says it aims to adjust its rates to “follow movements from the Bank of England base rate of interest”.

The base rate has consistently been increased over the past year in efforts to tackle high levels of inflation, and is currently at 4.25 percent.

Analysts expect the base rate will go down this year as inflation is also set to decrease, but some predict it will go up again before it peaks.

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Customers with an Instant Access Account will get at least 14 days’ notice if the rate goes down. They may get less notice if the rate is going up.

Here are some of the other top-paying easy access savings accounts at the time of writing, as listed on moneyfacts.co.uk:‌

  • Shawbrook Bank – Easy Access (Issue 35) – 3.65 percent
  • Aldermore – Double Access Account (Issue 1) – 3.55 percent
  • Investec Bank plc – Online Flexi Saver – 3.51 percent.

Sarah Coles, head of personal finance at Hargreaves Lansdown, previously told Express.co.uk that Britons who have now switched easy access accounts for some time may want to look around for a better deal.

She said: “You could wait for rates to peak before doing this, but if your money is in an unrewarding high street account in the interim, you risk missing out on significant interest in the interim.”

Savers may also want to consider investing savings in ISAs, as any interest earned on ISAs is not taxed, nor is any income a person derives from an ISA.

For the latest personal finance news, follow us on Twitter at @ExpressMoney_.

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