Chip has begun the roll-out of Interest Accounts, with an easy access rate of 0.90 per cent Annual Equivalent Rate (AER).

The first savings account to be available via the new platform is eligible for the Financial Services Compensation Scheme (FSCS), with more rates and accounts available soon, including notice accounts.

The technology behind the platform will enable Chip to negotiate competitive rates on behalf of its users and combine the savers’ money into a trust account. The more money in the trust account, the better the rates that Chip will be able to negotiate from the banks.

Interest Accounts, which are being rolled out gradually due to high demand, will allow Chip users to open a new savings account with a bank with just a few taps. Users can deposit, withdraw and track the performance of their savings all within the Chip app.

Savers can initially deposit up to £5,000 into their account, but this cap will be lifted to the full £85,000 limit for ChipX users once the update launches later this year. The interest is paid daily and added to the user’s balance, which they can withdraw as soon as it is available.

Chip’s chief executive Simon Rabin commented: “With clever AI and a radical approach to banking technology, we’ve helped tens of thousands of people who couldn’t, or wouldn’t, save up.

"This isn’t just one savings account - it’s a platform that negotiates better rates on your behalf as you sit back, save and earn interest - we don’t think people should have to spend hours trawling comparison sites, filling out form after form, and opening multiple accounts, so we’ve built something that’ll do everything for you at the push of a button."

In April, Chip saw 4,240 people invest more than £2.5 million via Crowdcube to fuel the startup's growth. The money management app's user base has increased over 40 per cent in the first three months of 2020, with the average amount put aside by savers each month increasing by 13 per cent.

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