A savings provider has boosted the interest on one of its accounts to 5.01% and secured an 'excellent' rating from Moneyfactscompare.co.uk. The Chip Easy Access Account has been named the site's savings Pick of the Week.
Key Features of the Chip Easy Access Account
The account offers a rate of 4.90% gross / 5.01% AER payable monthly, which includes a 1.45% gross / 1.51% AER bonus for the first six months. The underlying gross rate is guaranteed to be 0.30% below the Bank Base Rate. There is no lock-in term or notice period, and no minimum opening amount. The maximum investment is £1 million.
Savers can access their money, but if more than three withdrawals are made per year via a nominated account, the rate drops to 2.84% gross / 2.91% AER. Further additions are permitted with a minimum of £1. Accounts are opened and managed through the Chip mobile app, and applicants must be 18 or over. New customers need an open banking connection to a current account. Investors can choose between a fee-free Chip subscription or a ChipX subscription costing £4.99 per 28 days.
Expert Commentary
Caitlyn Eastell, personal finance analyst at Moneyfactscompare.co.uk, commented: 'The latest update from Chip sees it increase the rate on its Chip Easy Access Account. The boost to 5.01% AER sees it take the market-leading position when compared to its peers.' However, she warned that while the headline rate is attractive, savers should note the 6-month 1.51% AER bonus, which will drastically impact the rate after that point. She added: 'It is therefore important to review your deal once this expires.'
Ms Eastell also highlighted that the account has no minimum deposit and allows further additions at any time. However, access is limited: 'If they make four or more withdrawals the rate will drop significantly to just 2.91% AER so savers may need to plan carefully.' She concluded that overall, the account 'receives an Excellent Moneyfacts product rating'.
Competing Savings Accounts
The Chip Easy Access Account is among several competitive savings deals on the market. Other top-ranking options include:
- LemFi Instant Access Savings Account: 5.00% AER (reverts to 3.04% AER after six months), interest paid monthly, minimum opening amount £1, maximum investment £250,000.
- Revolut Instant Access Savings - Standard: 5.00% AER (includes a bonus until December 4, 2026, on balances up to £25,000), interest paid daily, no minimum opening amount, maximum investment £5,000,000.
- Tembo Home Saver: 4.55% AER (includes a 1.55% bonus for 12 months), interest paid monthly and must be compounded, minimum deposit £10, maximum investment £20,000.
Full terms and the latest deals can be found on Moneyfactscompare.co.uk's website.
