Top easy access rates stretch the competition

The top three easy access rates have all increased over the past 14 days.

Chip, Aldermore and Shawbrook Bank have all increased the rates on their easy access accounts over the past 14 days to enhance the competition at the top of the market.

Shawbrook Bank did lead the way after increasing its rate last Tuesday, but this proved short-lived after Chip’s increase late on Friday. 

Meanwhile, Aldermore’s rate rise a week prior to 3.55% AER was joint-market-leading at the time, but it now only warrants third place on our charts.

Rate hikes have occurred across the easy access market, with some of the pursuing competition following suit with their own raft of changes.

Yesterday, Nationwide BS upped the rate on its triple access range to 3.20% AER, while Marcus by Goldman Sachs® bettered the return on its easy access offering last Tuesday.

These recent rises are perhaps reflected in an increase in the average easy access rate, which now stands at 2.07% AER. In comparison, it stood at 1.96% AER at the start of April.

Chip’s Instant Access account now offers a rate of 3.71% AER which is paid monthly on balances of a single pound or more.

According to its website, it means a £1,000 deposit will earn £37.10 in interest over the course of a year.

As a fintech company, this offer is only operated through Chip’s free to use app. However, there is the option of accessing this rate through a ChipX membership at £4.99 every 28 days.

While you’ll be able to make unlimited use of its autosaves and recurring saves feature under this subscription, its main benefit is perhaps in its stocks and shares ISA.

ChipX members also gain access to 0% platform fees and a range of different investment funds.

Aldermore’s double access account differs from its own easy access account as it only allows two withdrawals from your balance per year.

If you exceed this figure then your rate will drop to 0.10% AER, which is why you’ll need to consider your withdrawals carefully.

Its rate of 3.55% AER is paid monthly or on anniversary, and if you choose to earn your interest on anniversary you can expect to earn £35 in interest on a deposit of £1,000.

Like Shawbrook Bank, minimum deposits start at £1,000.