- Most savings providers have been lowering rates after Bank of England’s cuts
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Savers have another top paying easy-access account to pick from as app, Chip, upped its rate in a surprise move today.
It has increased the rate on its Easy Access Saver* from 4.72 to 4.85 per cent.
On a £10,000 deposit that could enable someone to earn £485 of interest over a 12 month period, albeit if the rate remains unchanged.
This surprise move by Chip goes rather against the grain. Most savings providers have opted to cut rates in recent months following two cuts by the Bank of England last year – first in August and then in November.
Today’s change positions Chip as the joint second best paying easy-access rate on the market, on par with Atom Bank, which is also paying 4.85 per cent.
It sits just behind another app based provider, NuWealth, which is offering a deal paying 4.86 per cent via GB Bank.
All money deposited in Chip’s deal is held by ClearBank, and is eligible for Financial Services Compensation Scheme protection of up to £85,000 per person.
This FSCS protection means savers’ cash is protected up to £85,000 per person if the firm fails.
However, like with many of the best buy savings deals at the moment, Chip’s* bumper offer does come with a catch.
For a start, the 4.85 per cent rate is propped up by a bonus rate of 1.03 per cent for the first 12 months – thereafter the rate will fall to 3.82 per cent.
Savers will also have to tread carefully if they intend to dip in and out of their savings on a regular basis. If someone makes four or more withdrawals within 12 months they will find their rate is reduced to 3.75 per cent.
Atom Bank has a similar catch on its Instant Saver Reward. Anyone who doesn’t withdraw earns 4.85 per cent, but make one withdrawal and the rate falls to 3.25 per cent for that given month.
NuWealth’s GB Bank Easy Access deal comes with a 0.46 per cent 12 month bonus to take it to 4.86 per cent.
The bonus, however, is only available on balances up to £25,000 – although it does allow for unlimited fee free withdrawals, unlike Chip and Atom Bank.
All three providers offer FSCS protection.
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