Launch of the UK’s ‘best’ savings account with 1.5% interest and cashback on top
The Chase Account allows savers to deposit up to £250,000 in total and access their savings as often as they wish, without penalties, fees or loss of interest.
Savers looking for the best paying account have a new option starting today – with a digital bank offering savers 1.5% on their money.
The savings account, which is available through Chase Bank, is available through an app, and savers can earn money in addition to their rewards.
Although the account still pays below inflation at 6.2%, it is higher than the next highest payer at 1% and has no fees if you need access to your money at the last minute. .
Savers can deposit up to £250,000 in total at any time and can access their savings as often as they like with no fees, charges or loss of interest.
The bank, part of US giant JP Morgan, has been around for two centuries but only launched in Britain last September.
It was originally known as Bank of The Manhattan Company before merging with Chase National Bank in 1955 to become Chase Manhattan Bank.
Shaun Port, Managing Director, Savings and Investments at Chase, said: “With the rising cost of living, we know consumers want to maximize the interest they can earn with the reassurance of having instant access to their saving.”
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In 2000, it was acquired by JP Morgan and has since become one of the main American banks, with nearly 5,000 branches.
Although owned by the US, any savings UK customers deposit are protected by the FSCS Guarantee, meaning £85,000 is fully insured.
The new account offers customers the chance to get 0.5% more than any other savings provider, plus 1% cashback for an extra year.
The second highest offer is offered by Virgin Money. Its linked savings accounts for its checking account customers pay 1% on balances up to £25,000 and 0.5% on anything above that level.
If you’re looking for a bigger variable rate, however, the Virgin Money M Plus account offers 2.02%, while the Nationwide FlexDirect offers 2% – but only on much smaller balances of up to £1,000 and £1,500 £ respectively.
The only hurdle is that the Chase Savings Account is only available as an app, so you’ll need a smartphone to avail it.
It also offers a no-fee debit card abroad so Chase won’t charge you any fees when using its card on the go, including ATM cash withdrawals.
The bank also doesn’t currently offer joint accounts, so this won’t necessarily work for everyone.
The Chase debit card also doesn’t have a number. This means less risk if the physical card is lost and a new card number can be generated immediately, meaning a customer can continue to use the card digitally.
Andrew Hagger, founder of Moneycomms, believes the deal is just too good for rate-hungry savers to ignore. His only concern is that it doesn’t last long.
“There’s no doubt that this is a mind-blowing rate for an easy access savings account,” says Hagger, “it’s head and shoulders above the best standalone easy access buys.” paying between 0.9% and 0.95%.
“This is clearly a carrot from digital banking to try and drive new current account openings and in today’s market I expect it to be inundated with applications.
“Let’s just hope the rate is more of a short-term incentive that is then reduced a few months later.”
Eleanor Williams of MoneyFacts.co.uk said: “Following recent base rate increases, it is good for savers to start seeing higher rates offered on easy access accounts and to see increasing levels of competition. return to this sector of the savings market.
“As the cost of living crisis continues, many savers may not want to lock their money into a fixed account and so this could well be an attractive option for those looking to keep their nest egg somewhere they can sustain flexible and unrestricted access.”