Chip launches first cash ISA – how does it compare?

The Chip Cash ISA (powered by ClearBank) pays 4.75% AER.

App-based savings provider, Chip, launched its first product into the cash ISA market today, following “a year of rapid growth for the business in 2023”.

Its Chip Cash ISA (powered by ClearBank) takes a competitive position on our easy access ISA chart, paying 4.75% AER monthly.

“This is a big moment for Chip and is the next step in our mission to become a trusted, one-stop destination for building wealth,” explained Simon Rabin, CEO of Chip.

“Rising interest rates have changed the landscape so our priority was to develop a product to give our users a tax-efficient way to get the most out of their money, with all the convenience that they’ve come to expect from us,” Rabin added.

The decision also followed Chip announcing it now holds more than £3 billion in customer deposits and has 790,000 registered users.

More on the Chip Cash ISA (powered by ClearBank)

Like other savings products from Chip, its Chip Cash ISA (powered by ClearBank) operates solely via mobile app.

While it requires a minimum deposit of just £1, you’ll also need to hold another savings account with the provider before applying.

This account allows both further additions and withdrawals; as a flexible ISA, you’ll be able to replace any funds withdrawn without it counting towards your annual ISA allowance.

However, transfers in are not permitted, which may be a drawback if you have funds in other ISAs which you’re looking to move across.

How does it compare?

This account joins the Cash ISA from Marcus by Goldman Sachs®, the Saga Cash ISA from SAGA, Loughborough BS’s Access x1 Cash ISA and OakNorth Bank’s Easy Access Cash ISA in offering 4.75% AER.

Meanwhile, Virgin Money offers a marginally higher rate on its Easy Access Cash ISA Exclusive Issue 2, at 4.76% AER.

Nevertheless, top rates in this sector remain in excess of 5.00% AER, with the Moneybox Cash ISA, Zopa’s Smart ISA – Access ISA pot and Coventry BS’s Four Access ISA (Online) paying 5.09% AER, 5.08% AER and 5.05% AER respectively.

You can find out more about the best ISA rates available in our weekly ISA roundup. Alternatively, for a view of the whole of the market, visit our dedicated ISA charts.