The app-based bank has upped the rate it pays on its Instant Saver to 5%, propelling it to the top of the best buy tables.

The move comes after the Bank of England raised the base rate to 5.25% last week, the 14^th rate rise in a row.

According to Moneyfacts data, it is the first time there has been an easy access savings account paying 5% or more since January 2009.

Alex Mollart, CEO at Tandem Bank, said: “We’re really excited to be able to offer this new rate to as many of our customers as we can.

“We continue to offer a leading proposition for hard-working savers across the UK. With interest rates continuing to rise, we’re looking after our customers by raising the rates. Together with our Top Up, they are further rewarded with a market-leading overall rate of 5% on their instant access savings.

“Hopefully this will be a prompt for all to review where they hold their savings. At Tandem, we look to support banking for a greener future with customers’ savings supporting green lending and initiatives.”

How to get 5% interest from Tandem

To earn 5% AER on your savings, you need to download the Tandem app and open an Instant Saver.

There is no minimum balance to open an account and the maximum balance is £250,000.

This account has an underlying rate of 4.65% – but you can opt-in to a 0.35% ‘top up’, bringing the total interest paid to 5% AER.

To add the top up to their account, customers simply need to open the Tandem app and press the ‘top up’ button. The top up rate applies to a customer’s account for 12 months from the date of application.

AER stands for Annual Equivalent Rate and illustrates what the interest rate would be if interest was paid and compounded each year. This allows customers to compare easily what return they can expect from their savings over time.

Interest on Tandem’s Instant Saver is calculated daily and paid monthly into the account. Both the underlying interest rate and the top-up are variable, which means Tandem can change them at any time. The bank will give savers 30 days’ notice if it reduces the rate, while any increases take place with immediate effect.

The rate increase means someone who kept £1,000 in the account for a year would earn £50 in interest.