Smart savings app Chip is to offer interest-bearing accounts to customers, offering a competitive easy access rate of 0.9%.
All customers signing up for the service will have their money bundled into a single shared trust account, enabling Chip to negotiate better rates from individual banks.
Savers can initially deposit up to £5,000 into their account, but this cap will be lifted to the full £85,000 FSCS-protected limit for premium ChipX users once the update launches later this year.
Interest is paid daily and users can deposit, withdraw, and track the performance of their savings from within the Chip app.
The company, which is treading a path taken recently by other PFM-type apps, says it expects to make more rates and accounts available soon, including market-leading notice accounts.
Chip’s chief executive officer, Simon Rabin, comments: “Millions of people in the UK have less than £100 in savings, leaving a huge chunk of the UK too reliant on credit, unprepared for a financial shock and not sufficiently planning for their financial future. And even if you do have savings, for the last decade it has been all but impossible to find a risk-free savings account that offers any kind of return.
"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."