Best easy-access savings rates top 3.5% as Marcus, Zopa and Chip all increase interest
Savers can now earn over 3.5% interest on an easy-to-access account as app-based banks Marcus, Zopa and Chip all raise their rates
- Savings and investment app Chip now offers 3.55% interest
- Zopa raises his rate to 3.34% while Marcus goes from 3% to 3.2%
- Savings Guru says rates will get better, but we are approaching the peak
Another three savings providers increased their low-threshold rates, so that savers can now earn more than 3.5 percent interest.
Popular online bank Marcus, owned by Goldman Sachs, raised its savings rate from 3 percent to 3.2 percent.
Digital bank, Zopa, also increased its easy access deal from 3.21 percent to 3.34 percent, while savings and investment app Chip increased its rate from 3.4 percent to 3.55 percent.
Three more savings providers have raised easy-access rates, with one savings expert claiming further increases are likely
It comes after a wave of rate hikes by savings providers in recent weeks, including some of the big names like Nationwide Building Society and HSBC, as well as digital banks like Monzo, Atom and Chase.
Savings and investments app, Chipnow offers the best easily accessible deal on the market with a rate of 3.55 percent.
Savers can deposit between £1 and £250,000 into Chip’s account. All funds deposited are held by ClearBank and are eligible for the Financial Services Compensation Scheme up to £85,000 per person.
The savings account has to be opened and managed via the Chip mobile app, so that won’t be for everyone.
Someone putting £10,000 into this account could earn £355 over the course of the next 12 months – if rates stay the same.
Digital bank Zopa’s Smart Saver accountpaying 3.34 per cent allows depositors to stash between £1 and £85,000 and withdraw money without any restrictions.
Chip in: Chip’s account is the market leading easy access account with no restrictions
Zopa also offers savers the option to increase their rate to 3.55 percent by tying money for longer, through a selection of linked withdrawal accounts.
To take advantage of this, savers must download Zopa’s mobile app and manage their account from their smartphone.
The interest rates on Marcus’ online savings account And cash isa now both stand at 3.2 percent.
But to get the 3.2 percent rate, savers must opt for a 12-month fixed ‘bonus’ rate of 0.25 percent. Otherwise they only earn 2.95 percent.
With the bonus included, this means that someone who deposits £10,000 into either account can expect to receive £320 in interest over the course of a year.
New customers can open an account with £1 and can deposit up to £250,000.
Savers can add and withdraw money whenever they like, but there’s a £20,000 per day withdrawal limit online – although there’s an option to call in if they need to withdraw more.
The Marcus account can only be opened and managed online, although it is also possible to give some instructions over the phone. A mobile app is also available for those who prefer to do everything on their smartphone.
App-based Zopa offers one of the most accessible savings rates on the market
Will interest rates continue to rise?
Popular savings website Savings Guru says easy access rates are now approaching peak.
A spokesperson said: ‘I think there’s still a little way to go for easy entry rates, but not much further.
However, Chip seems determined to hold onto the top spot as they have responded to every move up there so far.
“I don’t see easy 4 percent entry rates, but we could see another 10-15 basis points on top of where we are now. We are unlikely to move forward unless we get another rate hike in May.”