Savings provider launches best buy easy-access account - is it worth opening before any base rate cut?
Products featured in this article are independently selected by This is Money's specialist journalists. If you open an account using links which have an asterisk, This is Money will earn an affiliate commission. We do not allow this to affect our editorial independence.
Savers have a new top paying easy-access account to pick from as Chip has boosted its rate.
The app-based provider has added a 12 month bonus to its easy-access deal*, boosting the rate to 4.76 per cent.
The bonus makes up 1.2 per cent of the headline rate, with an underlying rate of 3.56 per cent. The bonus is fixed for 12 months, even if the underlying rate changes.
The new rate is available to This is Money readers who open the account through this link* and must use the code GETCHIP.
On a £10,000 deposit. a saver could earn £476 of interest over a 12 month period, if the rate remains unchanged.
The move by Chip comes as the Bank of England's Monetary and Policy Committee is widely expected to vote to cut interest rates next week from 4.5 per cent to 4.25 per cent and many savings providers have moved to cut savings rates as a result.
The market is pricing in around three more cuts in 2025. In the past 18 months, savings rates have fallen.
The average easy access rate fell from 3.18 per cent to 2.77 per cent according to rate scrutineers Moneyfacts Compare.
Today's rate change positions Chip as the best paying easy-access rate on the market.
It has knocked Atom Bank's Instant Saver Reward out of the top spot for best easy-access rate, which is offering a deal paying 4.75 per cent.
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, as with many of the best buy savings deals at the moment, Chip's* bumper offer does come with a catch.
For a start, the 4.76 per cent rate is propped up by a bonus rate of 1.2 per cent for the first 12 months - thereafter the rate will fall to 3.56 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 account. Anyone who doesn't withdraw earns 4.75 per cent, but make one withdrawal and the rate falls to 3 per cent for that given month.
For savers who want the freedom to withdraw their money as many times as they like without being penalised by a rate cut, Charter Savings Bank has a 4.59 per cent easy-access deal with unlimited withdrawals.
What are the best Isa rates?
Don't overlook cash Isas for high easy-access rates with the huge benefit of interest earned being completely tax free, which is not the case with a easy-access savings account.
The best ones are offering rates of up to 5.71 per cent. Moneybox is paying savers this rate which includes a 1.51 per cent bonus for 3 months.
Withdrawals are limited to three times in a 12 month period, after a fourth withdrawal the rate drops to a mere 0.75 per cent.
The next best deal comes from CMC Invest *, paying 5.7 per cent on its easy-access cash Isa deal. It includes a bonus of 0.85 per cent for three months but withdrawals are unlimited.
How we pick our favourite Isas
Our five favourite Isas round-up is a permanent feature of This is Money.
It comes complete with an explanation detailing why we're happy to pick each account.
Our team work tirelessly to stay on top of the latest rate changes, but banks and building societies can pull deals without telling us.
If you spot a deal here that is not longer available please email us at editor@thisismoney.co.uk
Remember, you can open an Isa or transfer (provided you're not tied to a fixed-term) at any time during the year.
Note that we don't just copy the best rates from the savings tables - we scour the market for all-around winners.
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