Chip Cash ISA

An instant cash ISA designed to give you a tax-efficient way to save with full flexibility.

Earn 5.10% AER (variable tracker).

Earn interest monthly, tax free.

Withdraw without impacting your annual ISA allowance.

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Eligible deposits are protected under Financial Services Compensation Scheme up to £85,000.

How much tax I can save with Cash ISA?

The key benefit of a Cash ISA, compared to a standard savings account is the tax free returns over your personal savings allowance.

This is a projection only. There is no commitment to deposit. Chip does not provide tax advice. Tax treatment depends on individual circumstances and may be subject to change in the future.
If your taxable income is £12,571 to £50,270
Taxable income is used to calculate your Personal Saving Allowance and income tax band. For more info on Personal Tax Allowance, visit: gov.uk/income-tax-rates
£1,000 tax-free allowance
Non-ISA
Unlimited allowance
Cash ISA
If your taxable income is £50,271 to £125,140
Taxable income is used to calculate your Personal Saving Allowance and income tax band. For more info on Personal Tax Allowance, visit: gov.uk/income-tax-rates
£500 tax-free allowance
Non-ISA
Unlimited allowance
Cash ISA
If your taxable income is more than £125,140
Taxable income is used to calculate your Personal Saving Allowance and income tax band. For more info on Personal Tax Allowance, visit: gov.uk/income-tax-rates
£0 tax-free allowance
Non-ISA
Unlimited allowance
Cash ISA

See how much you could save in 5 years.

Starting with a highly competitive 5.10% AER, use our projection calculator to see how much money and tax you could save in five years with Chip’s Cash ISA.

Remember that your £20,000 allowance is shared across all your ISA accounts, even if you use multiple providers.
£
Remember that your £20,000 allowance is shared across all your ISA accounts, even if you use multiple providers.
£
The salary information is used to calculate your personal saving allowance and income tax band. For more info on Personal Tax Allowance, visit: gov.uk/income-tax-rates
This is how much you would pay in tax on your interest if your savings were held in a non-ISA account with the same rate (4.75% AER).
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This is a projection only. There is no commitment to deposit. *The tax is compared with savings held in a non-ISA account and would be variable based on the interest rate and your personal circumstances. This calculation assumes the interest rate doesn’t change during this period and that no withdrawals have been made. This calculator has been made for illustrative purposes. Chip does not provide tax advice. Tax treatment depends on individual circumstances and may be subject to change in the future. This projection assumes your tax residency is within England, Northern Ireland and Wales.
Account Summary Box
What is the interest rate?
5.10% annual equivalent rate
AER Interest is calculated daily on the full closing balance in the account. AER stands for Annual Equivalent Rate and illustrates what the interest rate would be if interest was paid and compounded once each year.
4.99% annual gross rate
The gross rate refers to the interest rate before any deductions, such as taxes or fees, are taken into account.
Interest is payable on this account. The variable interest rate is currently 5.10% AER. The Chip Cash ISA interest rate is based on the Bank of England base rate of 5.25%. To monitor the Bank of England base rate visit their website.
The interest rate is variable and tracks at a margin of 0.26% (gross) below the Bank of England base rate (“Tracking Rate”). We will notify you of any changes at this time.
Interest will be calculated daily and paid monthly on the fourth business day of each month. Information on interest paid out can be found both on your monthly statement and in the Chip App’s 'Saving' tab.
AER interest is calculated daily on the full closing balance in the account. AER stands for Annual Equivalent Rate and illustrates what the interest rate would be if interest was paid and compounded once each year.

Where at any time the Bank of England base rate is at a level that is equal to or below the Tracking Rate then the interest rate you receive will be 0.00%.

We may vary the Tracking Rate in accordance with our rights to make changes set out in Chip’s Terms and Conditions. If we increase the Tracking Rate margin (i.e. decrease your rate) you will be given 14 days notice before the change comes into effect. If we reduce the Tracking Rate margin (i.e. increase your rate), you will be given less notice. If we tell you about a reduction in the Tracking Rate and you’re not happy, you can ask us to close your Cash ISA before the change happens. If we don’t hear from you, we’ll assume that you’re happy with the change we’ve made.

Chip reserves the right to offer individual customers an additional bonus rate based on a variety of circumstances. This includes but is not limited to:

● Your Price Plan;
● Referring a friend;
● Promotional codes; or
How much interest could earn over 12 months.
This is just an example and not based on your individual circumstances. It assumes that you don’t add or take out any money during the year, and that there was no change to the interest rate during the 12 months. It also assumes that the Bank of England base rate as at 19 January 2024 remains unchanged at 5.25% during the 12-month period.
Your balance
12 month interest earned
Balance after 12 months
£100.00
£5.10
£105.10
£1,000.00
£51.00
£1,051.00
£10,000.00
£510.00
£10,510.00
£20,000.00
£1020.00
£21,020.00
Can I withdraw money?
If you make a withdrawal via the Chip app, the money is paid by ClearBank to Chip before paying it out to your linked bank account. It may take up to 2 hours for your cash funds to reach your bank account. Income earned on monies after they have been withdrawn will not benefit from any tax exemptions under the ISA Regulations.
You can also transfer your Chip Cash ISA to another ISA provider. You can do this through your new provider, who will send us a request for transfer. This can take up to 15 business days (if transferring to another Cash ISA) or 30 calendar days (if transferring to another type of ISA).
There is no minimum withdrawal amount. If you make a withdrawal and the balance falls to £0, and remains at £0 for 6 months, your Chip Cash ISA account may be closed.
Can we change the interest rate?
The interest rate on your Chip Cash ISA is variable and can go up or down depending on the Bank of England base rate.
How do I open and manage my account?
To open a Chip Cash ISA, you must complete an application online through your Chip app. You must be at least 18 years old and a UK resident to open a Chip Cash ISA.
There is no minimum or maximum deposit. However, your ISA allowance for 2024/25 is £20,000 per year (this limit also includes subscriptions you make into other types of ISA you hold).
Your Chip Cash ISA is flexible so you can replace any money you withdraw from your ISA without it counting towards your yearly ISA allowance, as long as you replace the money in the same tax year.
As a new user you will need to sign-up to Chip, complete an application for the Chip Cash ISA, make a first save and start accruing interest. If you do not complete all the steps you will not accrue interest.
As an existing user, you will need to open your Chip App, complete an application for Chip Cash ISA, make a first save and start accruing interest. If you do not complete all the steps you will not accrue interest.
When you deposit money into your Chip Cash ISA via the Chip App, Chip processes your deposit and passes the money to ClearBank to hold in your account. If you deposit directly using your ClearBank account number and sort code, Chip is not involved in the processing of your deposit.
It may take up to three business days for your funds to arrive at ClearBank depending on how you deposit via the Chip App.
Instructions regarding your Chip Cash ISA should be made through the Chip App.
Subscriptions into your Chip Cash ISA will only count from the date that the payment settles in your Chip Cash ISA account held with ClearBank and not the date it was authorised within the Chip app
There are no fees or charges associated with opening and holding Chip Cash ISA. Fees and charges may apply for additional features that you may choose to use.
Additional Information
If you cancel the Chip Cash ISA within 14 calendar days of opening it then you will not incur a penalty. There is no minimum contract duration for this account. You must be a UK resident and pay tax only in the UK to access the Chip Cash ISA.
Money held in your Chip Cash ISA is eligible for FSCS protection, provided you meet the FSCS eligibility criteria and subject to the FSCS limit of £85,000. That limit applies to all money held with a particular bank, so if you have any money in other accounts with ClearBank - whether through the Chip App or not - those balances would also count towards the £85,000 limit.
In the event that Chip were to fail, your money would continue to be held by ClearBank and there would be no need for the FSCS to step in. Chip's website would be updated with details of how to get in touch with ClearBank directly.
In the event that ClearBank were to fail, the FSCS would step in to protect customers’ funds. The FSCS typically pays customer funds out within seven days (subject to you meeting the eligibility criteria and to the £85,000 limit). For more information, see How we protect your money.
ClearBank is the provider and ISA Manager of your Chip Cash ISA. Chip helps to administer your account and provides services that allow you to access and manage it.

Chip is a trading name of Chip Financial Ltd and is authorised by the Financial Conduct Authority under the Payment Services Regulation 2017 for the provision of payment services. Firm Reference Number 911255.

ClearBank Ltd is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority.  Firm Reference Number 754568.

Cash ISAs explained

A cash ISA (individual savings account) is a type of savings account that allows you to deposit as much as £20,000 every tax year and earn tax-free interest.

Our instant access cash ISA allows account holders to deposit and withdraw money freely, without any penalties or reductions in interest rate.

What is my ISA allowance?

You can save up to £20,000 per tax year into ISA products, which is a limit set by the UK Government (known as your ISA allowance) and enjoy the tax-free benefit on any interest or returns you earn.

Can I pay into different types of ISAs?

Your £20,000 ISA allowance can be spread across four types of ISAs. You can pay into each type of ISA in the same tax year which runs from 6 April to 5 April.

Earn returns 2x higher than the highest ‘Big Four’ easy-access interest rate.

Our instant access cash ISA is a new savings account designed to help grow your wealth. Unlock higher returns with the Chip Cash ISA with an interest rate 2x higher than high street banks.

Grow your savings more smartly with a tax-efficient and secure account, all located within our award-winning app.

2.50%
Highest of the ‘Big Four’* Cash ISA Accounts
5.10%
The Chip Cash ISA
T&Cs apply. 5.10% AER. Chip account required. *‘Big Four’ refers to: Barclays Instant Cash ISA, Lloyds Cash ISA saver, NatWest Cash ISA, HSBC Cash ISA. Rates vary between 1.21% to 2.50% AER, as of June 18 2024. In this calculation we work out how many times greater our Cash ISA 5.10% rate is against the 2.50% HSBC Cash ISA rate. Returns assume that rate remains the same for the year and £10,000 is held in the account with no further deposits or withdrawals.

Why the Chip Cash ISA

The Chip Cash is fully flexible, allowing you to deposit up to £20,000 per tax year and withdraw when it suits you - without impacting your ISA allowance. With no tax on your interest earned and all-in-one award-winning savings app, it's the smarter way to grow your wealth.

Open in minutes

No forms, no fuss. All you need is an existing bank account and your National Insurance number.

Seamless experience

Open your Chip Cash ISA and deposit from £1 as often as you like. Manage everything in your Chip app.

Unlimited access

We don't limit your withdrawals or reduce your interest rate for accessing your money.

Cash ISA transfers are on the way.

You asked, we listened. We're excited to announce that cash ISA transfers are on the horizon, and you can be among the first to secure one.

You can now register your interest to transfer your ISA to Chip. Simply provide your details, and we'll notify you as soon as transfers go live.

Instant cash ISA benefits

The Chip Cash ISA is a flexible ISA, which means you can withdraw and deposit (almost instantly) as many times as you like, without it affecting your annual £20,000 ISA allowance.

With other providers, withdrawn funds can lose that tax-free status and will be taken off your ISA allowance. To add to that, you may be limited to a few withdrawals a year, or face a reduction to your interest rate for accessing your money. But not with Chip.

What is the Personal Savings Allowance?

The Personal Savings Allowance is the amount of tax-free interest you're able to earn annually across all of your accounts (not including ISAs).

Basic rate taxpayers have a £1,000 interest per year limit.
Higher-rate taxpayers have a £500 interest per year limit.
Additional rate taxpayers have no tax-free interest allowance.

With a cash ISA, the interest earned on your savings isn’t subject to tax, meaning you can potentially see a higher return compared to a regular savings account.

Chip does not provide tax advice. Tax treatment depends on individual circumstances and may be subject to change in the future.
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Covered by FSCS

All money deposited into a savings or investment account through Chip is eligible for cover by the Financial Services Compensation Scheme (FSCS), subject to FSCS conditions.

The first £85,000 you deposit into your savings account is covered by FSCS, meaning that in the unlikely event that one of our banking partners fails, you will be protected and your money will be safe. Find out more about how we keep your money safe.

You are covered up to £85,000 per bank whether your deposits are made via Chip or not. The Chip Cash ISA is provided by UK authorised ClearBank Ltd, who also provides the Prize Savings Account and the Chip Instant Access Account. This means deposits held across the Chip Cash ISA, Chip Instant Access and Chip Prize Savings Account would be eligible for a total of £85,000 of FSCS protection ONLY.

A tracker rate

The Chip Cash ISA has a tracker rate. This means the gross interest rate is variable and tracks at 0.26% below the current Bank of England base rate.

Basically, when the base rate moves up or down, your savings rate will move on the same day. This ensures it automatically stays competitive and in line with the wider market. Read more.

Getting Started

How to open your Cash ISA

We've made it easy to start building wealth with our savings accounts. No forms or fuss, get started in just a few minutes - download the app via Google Play or App Store.

Find 'Savings' tab

On the ‘Savings’ tab of your Chip app, you can choose from a range of savings accounts offering great interests rates and chances to win big prizes.

Connect your bank

In order to make near instant saves and withdrawals, you just need to connect your bank. Follow the simple steps to add your account in a few taps.

Start saving!

Make your first deposit via bank transfer, from your Chip savings accounts, debit card or Apple/Google pay and that’s it. Your account is open!

FAQs

Everything you've ever wanted to know about the Chip Cash ISA. Find all our up to date terms here.

What’s the Bank of England base rate of interest?

The Bank of England Bank Rate, often simply referred to as the base rate, is the interest rate at which the Bank of England lends money to commercial banks. It serves as a benchmark for all other interest rates in the economy, influencing the rates that banks offer on their lending and savings products.

The Monetary Policy Committee (MPC), a group within the Bank of England, sets the base rate based on economic conditions, with the primary aim of managing inflation. MPC decisions are widely reported on and their meeting notes are a matter of public record. 

What is a Cash ISA?

A Cash ISA (Individual Savings Account) is a type of savings account available to residents in the United Kingdom. It allows individuals to earn interest without paying income tax on the interest earned. Cash ISAs are considered a tax-efficient way to save because any interest earned within the ISA is tax-free.

What is a tracker rate?

The Chip Cash ISA has a tracker rate. This means the gross interest rate is variable and tracks at 0.26% below the current Bank of England base rate.

Basically, when the base rate moves up or down, your savings rate will move on the same day. This ensures it automatically stays competitive and in line with the wider market. Read more here

What is the annual ISA allowance and when does it reset?

The annual ISA allowance is £20,000 across the four different types of ISAs available, this includes the Cash ISA.

For example, if you had £10,000 in your Chip Stocks and Shares ISA and £10,000 in a Chip Cash ISA, you would have reached your annual ISA limit. Your annual ISA allowance resets at midnight 5 April 2025.

After this point we are in a new tax year and your new £20,000 ISA allowance comes into effect.

What does a flexible ISA mean?

A flexible ISA allows individuals to withdraw money from their ISA accounts and then replace it within the same tax year without affecting their annual ISA allowance. Also, if you withdraw your money in our Cash ISA, you won’t receive any restrictions or penalties.

When is interest paid?

Interest is paid on the fourth working day of each month.

Still have questions?

Opening a Chip account takes just a few minutes. No forms, no fuss.

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1. Download Chip

Head to the App Store or Google Play Store.

2. Create an account

Enter a few details and pass a quick check.

3. You're good to go!

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