This post was updated on 07/03/2023 to reflect the 3.15% bonus, increasing to 3.40%.
The Savings company Chip has announced that you can now earn a 3.40% bonus on your savings, paid monthly, making It the top *UK's instant access saving account!
We are living slap bang in the middle of a cost-of-living crisis, and many of us have very little to put into savings accounts, but even if you only have a spare couple of pounds a month, it's worth setting up a saving account that you can add any extra cash into, to save for something nice, or perhaps to use as an emergency fund, and Chip offering a monthly, not yearly, 3.40% bonus every month will mean you will start to see your savings climb faster, but with the reassurance that you can still take your money out of your account, pretty much instantly, via the app, so if you need your money quickly, its there, with free unlimited withdrawals.
Chip uses the base rate to reflect its bonuses, and so if the base rate increases, Chip is fast to react and increase the bonuses it pays, so you may well earn more than 3.40% bonuses as the year progresses!
The bonuses don't compound, which means you won't earn interest on any bonuses you receive, so if you have £1,000 saved and receive £2.38 a month interest, next month you'll earn interest on the £1,000, but not £1,002.38, so you might as well withdraw it and spend it, as that bonus won't earn you more bonuses, although, in theory, you could withdraw the bonus and then deposit again, and that will then earn you further bonuses, but that's a bit of a hassle for smaller amounts! Savings rates offered by traditional banks are generally not very high and offer very few returns. Chip is currently topping the charts when it comes to easy access savings accounts returns (at the time of writing 07/03/23). Below you can see the top 4 easy-access savings accounts:
1. Chip 3.4% Minimum £1/ Maximum £250,000
4. Family Building Society 3.2% (min withdrawal £100) £100/ Maximum £250,000
You find out more about Chip savings accounts here or use the QR code on the top image.
* As of 07/03/23, but subject to change.