Competition is ramping up in the easy-access market among digital banks and Monzo is the latest to bring a 3% account to the table.

The instant access account has no minimum deposit and anyone with a Monzo account can open it.

It matches the offering from rival online bank, Chase, which increased the rate it pays to 3% this week for its instant-access savings account.

Chase has also confirmed it will start paying in-credit interest of 1% from April to current account customers, while anyone wanting to continue to receive debit card cashback of 1% after the initial 12-month period needs to meet a new £500 minimum deposit, while the cashback will be capped at £15 a month.

The account from Monzo has a maximum amount of £100,000 and savers can access their cash at any point without penalty.

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Monzo is protected by the Financial Services Compensation Scheme (FSCS), which covers up to £85,000 per person.

The account from Monzo will sit alongside other savings features from the bank including savings pots, a salary sorter and instant notifications for customers.

It already offers a range of easy access and fixed-rate savings accounts to choose from which are provided by Monzo’s partners.

How does the account compare to others on the market?

For savers looking to get the highest rate of interest on an instant-access account, there are other options. Cynergy Bank’s Online Easy Access Account (Issue 56) pays 3.11% interest and is the current market-leading account, according to Moneyfacts.

While the Paragon Triple Access Account (Issue 11) pays 3.10% interest with a minimum deposit of £1.

Tandem Bank has also recently increased the rate available on its instant access savings account to 3.05% AER.

The ‘green’ digital bank said its underlying instant access savings account pays 2.85% but once combined with its top up rate (0.20% AER variable) launched last month, savers can net 3.05%.

‘Our mission is to make money work for everyone’

Monzo’s CEO, TS Anil, said: “We’re thrilled to bring our first Instant Access Savings product to market. Developed with customers, it’s designed to give everyone the flexibility to grow their money and access it whenever they need to.

“We’re excited to get this into the hands of customers who we know are using Monzo’s powerful saving and budgeting features more than ever to make the most of every penny. Our mission is to make money work for everyone – and amid the cost of the crisis our ambition is to make money work even harder.”