CHIP BOOSTS INTEREST RATE ON ITS EASY-ACCESS SMART CASH ISA - BUT THERE'S A CATCH

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The savings and investing provider Chip has boosted the rate on its smart cash Isa to 4.32 per cent, launching it close to the top of This is Money's best cash Isa rate table.

The rate includes a 0.57 per cent bonus for 12 months, so savers would be wise to review where they keep their savings after that time. 

It is only beaten by Trading 212, which offers 4.51 per cent including a 0.91 per cent 12-month boost for new customers if they apply through our link*.

The Chip account's underlying rate is variable, but it tracks the base rate. The Bank of England held this at 3.75 per cent at its most recent policy meeting on 30 April.

Chip's smart cash Isa is flexible, so you can access your money at any time and withdrawals won't affect your annual Isa allowance, provided you replace the funds in the same tax year.

Limited boosted rates are usually only available to new customers – and this is the case with the Chip account. If you've exhausted options from the likes of Trading 212 and Plum*, Chip could provide a good alternative. 

However, there are two sizeable caveats.

The big one is that interest is currently paid yearly and if you transfer out of the account, you don't just forfeit the boosted interest – you forfeit all of it. Chip also doesn't currently accept transfers in to the account.

A 'pick of the week' – but savers should think about their options carefully

The rates scrutineer Moneyfacts has chosen Chip's smart cash Isa as a pick of the week because of its attractive headline rate.

But the fact that savers won't receive their interest payment if they transfer out in the first year 'should be considered', says Caitlyn Eastell, personal finance analyst at Moneyfacts.

Chip has told us that the option to receive monthly interest is coming from 13 May, so this should mean that you can bank interest payments and still transfer out if you want to.

You may want to wait until you can choose to take monthly interest before opening an account, therefore.

Chip has also told us that transfers in are coming at the end of May. If you open an account you shouldn't have to wait too long to switch money you have elsewhere to one of its accounts.

A positive feature is that Chip says there will be no reduced rate on transfers, so the boosted 4.32 per cent rate should be applied to switched funds.

In comparison, Plum has matched Chip's boosted rate, raising it from 4.31 per cent to 4.32 per cent for 12 months for new customers. However this reduces to 4 per cent on transfers.

You can currently get a £20 gift card when you open a Plum cash Isa and hold £1,000 in the first 90 days of having the account. Find out more and open an account with Plum*. 

Trading 212 pays the full 4.51 per cent boosted rate only on contributions made in the current tax year. This means that if you're transferring Isa funds that consist of previous tax year subscriptions, these will receive the underlying 3.6 per cent rate. Find out more and open an account with Trading 212*.

Each of these three options are easy-access, with no penalties on withdrawals. They're all flexible Isas too, so you can withdraw money and replace it in the same tax year without reducing your allowance. 

Keep in mind that 12-month boosts mean that your rate plummets after a year, so you should set a calendar reminder to compare options when the time comes. You may earn more interest by transferring to a different provider.

2026-05-12T06:20:20Z