Chase bank raises interest on easy-access savings account

Martin Lewis discusses bank account switching deals

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The Bank of England has been increasing its Base Rate nearly month-on-month to help temper the UK’s soaring inflation, and these raised rates have generally been reflected across high street banks and building societies’ offerings. Chase is next to hop on the bandwagon and a new interest rate will be applied to its easy-access account from tomorrow.

Carrying out its first rate rise since the banks’ launch in 2021, Chase will be hiking interest from 1.5 percent to 2.1 percent on Monday, October 24.

The new rate will be automatically applied to the easy-access accounts of new and existing savers.

On the banks’ new offering, Shaun Port, Managing Director for Everyday Banking at Chase, said: “We’re increasing the rate on our saver account to help new and existing customers make their money work harder, in what we know is a challenging time for everyone.

“With costs increasing, having greater flexibility and access to savings, without being charged fees, is increasingly important for people when managing their money.

“The Chase saver is linked to Chase’s current account, which offers one percent cashback on everyday debit card spending for a year and five percent AER interest on small change round-ups.”

Promising ‘rewarding banking’ to every customer, JP Morgan’s Chase was launched as a smartphone app-based bank in 2021 and has since accumulated over 56 million customers across the US and the UK.

Those who have a current account with Chase can open the easy-access saver with no minimum deposit.

Customers can also own up to 10 of these accounts at one time, to help with spending, budgeting, and setting money aside. Each will individually earn interest.

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However, once the balance across all saver accounts reaches £250,000, account holders won’t be able to pay in any more cash, but will still earn interest.

Interest is calculated daily and awarded to accounts monthly – unlimited withdrawals are also permitted.

Chase bank accounts also offer a number of additional benefits, including a one percent cashback on everyday debit card spending for a year and five percent interest on round-ups.

Customers can enjoy zero fees on transactions abroad, as well as in-app card control to freeze spending as and when.

But, while the new Chase easy-access savers rate will offer more competitive returns than it previously did, it still doesn’t exceed the current market-leading easy-access rate.

According to MoneyFacts, topping the leaderboard is Al Rayan Bank’s Everyday Saver with an Annual Equivalent Rate (AER) of 2.81 percent.

Gatehouse Bank’s Easy Access Account and Sainsbury’s Bank’s Defined Access Saver (Issue 33) follow closely behind with AERs of 2.8 percent and 2.75 percent respectively.

However, competing with a similar offering as Chase but with a higher rate of interest is Zopa’s Smart Saver with an AER of 2.15 percent.

Zopa’s saver also allows customers to open personalised pots however, a maximum of £85,000 can be deposited to the account in total before account holders are no longer allowed to submit any more cash.

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