British challenger bank Monzo has tied up with local fintech firm OakNorth to launch a suite of savings accounts that will pay interest.

The accounts will have varying interest rates, with the annual equivalent rate (AER) ranging between 1% and 1.53%.

Of the new offerings, two are cash ISA accounts.

The debut account to made available is an easy-access cash ISA with 1.14% AER.

Consumers can open accounts on depositing a minimum of £500.

The maximum deposit in case of ISAs and normal savings accounts is £20,000 and £500,000, respectively.

Monzo plans more alliances with other savings providers in the future.

The bank’s new offering marks a key development, considering that it currently enables users to save money on its app but does not pay interest on the money.

Monzo CEO Tom Blomfield said: “ISAs and higher interest rates on savings are something our customers have been asking for, so we’re really excited to be launching them in time for the end of this tax year.

“We want to give our customers access to a wide range of products and services from across the market, so they can choose what works for them and get an overall view of their finances,” Blomfield added.

Monzo has been in the news since the beginning of this year.

This January, the bank announced plans to create over 300 jobs through the opening of a customer support centre in Cardiff.

The bank reached its unicorn status last year after raising £85m.