Enhanced Cash Isa Offered by Chip Makes It a Top Contender - Is It Worth Investing?
Chip's Cash Isa Rate Rises to 4.99% as Competition Intensifies in Tax-Free Savings Market
In a move to bolster its competitive edge, Chip has increased the interest rate on its easy-access cash Isa to a notable 4.99%. This increase comes as the battle to provide the best tax-free savings deal intensifies once more.
The rise in interest rate is accompanied by a 12-month bonus of 0.93%, pushing the total rate up to 4.99%. To take advantage of this offer, interested savers are requested to download the Chip app and open an easy-access Isa through the platform, using the code PROMOBOOST during the process.
With this new rate, Chip has claimed the top spot in the Isa best buy tables, surpassing Plum's 4.98% deal, which was previously the best rate for an easy-access Isa with a 12-month bonus. Unlike Chip's flexible Isa, Plum's easy-access Isa does not offer the same flexibility, as withdrawals could count towards the yearly Isa allowance if the funds withdrawn are not replaced within the same tax year.
Competition in the tax-free savings market is increasing, as savers seek out the best return possible. Chip's boosted rate presents another reshuffle at the top of the league tables, with several providers offering enhanced rates for a limited period.
It is worth noting that once the bonus rate wears off after 12 months, Chip's revert rate is 4.06%, which is higher than Plum's revert rate of 3.29%. New customers transferring an existing Isa to Plum's easy-access deal, however, will receive a lower rate of 3.29%.
Other providers offering attractive easy-access Isa deals include Trading 212, which pays 4.86% to new customers and maintains a variable rate of 4.1% for existing customers. Moneybox offers the best headline rate for an easy-access Isa of 5.71% for three months, but this rate drops significantly to 0.75% if more than four withdrawals are made over the period.
CMC Invest remains the best overall deal, offering a rate of 5.7% with a three-month bonus of 0.85%, followed by Moneybox's headline rate after the bonus period ends.
Interested savers should review the terms and conditions of each provider before making a decision to ensure they understand any associated changes in rates, withdrawal limits, and FSCS protection.
- Chip's increase in their cash Isa rate to 4.99% is a strategic move to compete effectively in the tax-free savings market.
- The enhanced rate of 4.99% from Chip has catapulted them to the top of the Isa best buy tables, surpassing Plum's previous best rate of 4.98%.
- In contrast to Chip's flexible Isa, Plum's easy-access Isa does not permit the same flexibility, as withdrawals could impact the yearly Isa allowance if funds withdrawn are not replaced within the same tax year.
- As competition heats up in the tax-free savings market, savers are advised to evaluate various offers from providers like Trading 212, Moneybox, and CMC Invest, ensuring they understand related changes in rates, withdrawal limits, and FSCS protection.
