The new account, powered by ClearBank, is fully flexible, allowing savers to instantly deposit and withdraw their money with no restrictions without affecting their ISA allowance. It will offer a highly competitive interest rate of 4.75% AER (variable) that tracks at 0.6% below the Bank of England’s base rate, ensuring it automatically stays competitive and in line with the wider market.

Chip says it has prioritised developing a Cash ISA to help members keep more of the interest they earn as they grow their wealth. Rising interest rates have increased the amount of interest received on savings, but also increased the likelihood of having to pay more tax on savings interest. With a Cash ISA, all interest earned on money held within the account - up to the annual ISA allowance of £20,000 - will be tax-free.

This new Cash ISA will further bolster Chip’s offering as the single place for savings and investment needs, sitting alongside the app’s existing Stocks and Shares ISA, Instant Access account and Prize Savings account.

Simon Rabin, CEO of Chip, said: “This is a big moment for Chip and is the next step in our mission to become a trusted, one-stop destination for building wealth.

“Rising interest rates have changed the landscape so our priority was to develop a product to give our users a tax-efficient way to get the most out of their money, with all of the convenience that they’ve come to expect from us.

“We have a lot in store for 2024 and this launch is just the beginning.”

The product’s launch also comes after the announcement that Adam Seale is joining as non-executive chair of Chip, one of the fastest growing wealth management businesses in the UK.

He brings considerable financial experience to Chip at a time of significant growth, with the business growing assets under management 10x in the last year, increasing from just under £300 million at the start of 2023, to over £3 billion today. Whilst also seeing revenue increase 922% over the course of last year, and the business having their first profitable quarter in Q3 2023.

Previously, Adam was CEO of Interactive Investor for five years when it grew from £1 billion to £19 billion client assets under management. This expansion of Chip’s product suite follows a year of rapid growth for the business in 2023.

The business recorded its first full profitable quarter in Q3 2023, on the back of over £3bn in net cash deposits between January and September, and a rise of more than 150% in its number of active users.

It now has 790,000 registered users, and holds customer deposits of more than £3 billion.