Home Money Chip now accepts transfers to your best cash ISA

Chip now accepts transfers to your best cash ISA

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New: Chip's Cash ISA finally allows transfers from other ISAs, making it even more attractive to many savers
  • Chip’s Easy Access ISA now accepts transfers from other ISAs
  • The ISA is completely flexible and pays a maximum rate of 5.1%

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Chip now accepts transfers to its Easy Access Cash ISA, owned by the top 5.1 per cent.

Prior to this, Chip did not accept transfers from other ISAs and there was a notification on their website stating that customers could sign up to be notified when Chip was ready to accept ISA transfers.

The Isa, first launched in February this year, quickly rose to the top of the Isa best buys charts.

Chip’s Isa* It’s flexible, meaning savers can take money out and put it back in without using the ISA’s £20,000 annual allowance. The only caveat is that they must replace the cash in the same tax year.

New: Chip’s Cash ISA finally allows transfers from other ISAs, making it even more attractive to many savers

The fact that it now accepts transfers makes it even more attractive.

Chip’s easy access rate is second only to Plum Isa*which pays 5.17 per cent. But Plum’s ISA comes with a bonus rate of 0.86 per cent for the first 12 months.

If your balance falls below £100 or you make more than three withdrawals in a year, the rate is reduced to 3 per cent.

The other big drawback of the Plum account is that it is not flexible.

What’s in the fine print of the Isa Chip?

Chip’s Easy Access Isa card can be opened with as little as £1.

This account can only be opened through the Chip app. There are no limits on the number of times you can withdraw your money and Chip will not reduce your interest rate for accessing your money.

The interest is variable and follows the Bank of England base rate. When the base rate goes up or down, your savings rate will move on the same day.

Those thinking of opening the account should keep this in mind, as the base rate could be reduced in August or September, meaning the Chip interest rate will likely fall from 5.1 percent.

All money deposited into the Chip settlement remains held by ClearBank and is eligible for Financial Services Compensation Scheme protection of up to £85,000 per person.

This FSCS protection means that savers’ cash is protected up to £85,000 per person if the company goes bust.

> Read more: Five of the best cash Isas

How a Flexible ISA can help you keep more of your savings tax-free

A flexible ISA allows you to withdraw money and put it back without using any of your annual ISA allowance. The only caveat is that you must replace the cash in the same tax year.

They are most beneficial to those who have large amounts of cash and the firepower to fill their ISA, but they can benefit everyone as they help adjust our financial behaviour.

Most savers have little hope of using the full £20,000 allocated to them in an ISA, but still tend to put cash they could use into easy-access taxable savings accounts.

With interest rates rising and the personal savings limit stuck at £1,000 for basic rate taxpayers and just £500 for higher rate taxpayers, it has become much easier to fall into the savings tax trap.

With a savings rate of 5 per cent, a basic rate taxpayer now needs just £20,000 in cash to overcome the allowance, while a higher rate taxpayer needs £10,000.

Meanwhile, if you pay 45p in tax, you don’t get any personal savings allowance.

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5.09% cash for Isa investors

Boosting investment

5.09% cash for Isa investors

Boosting investment

5.09% cash for Isa investors

Includes 0.88% bonus for one year

Cash Isa at 5.17%

Includes 0.88% bonus for one year

Cash Isa at 5.17%

Includes 0.88% bonus for one year

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5.78% savings

You have 365 days' notice

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You have 365 days’ notice

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Get £200 back in trading commissions

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