Chase offers more competitive rate on easy access savings account

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As the Bank of England proceeds to increase its Base Rate, high street banks and building societies have been boosting interest across their own offerings, affording savers some of the highest returns seen in decades. Chase kicked off the year with an interest rate boost on its easy access savings account last week, raising its position in the market.

Easy access savings accounts have been growing in demand in recent months, as rapidly rising living costs have resulted in more Britons needing increasing and instant access to savings.

Easy access savers are typically quite simple to manage as they enable account holders to make payments and withdrawals with minimal restrictions and small opening deposit requirements.

As of last week (January 4, 2023), Chase made a number of changes to its Saver Account, including an Annual Equivalent Rate (AER) boost to 2.7 percent, as well as a deposit limit increase to £500,000.

Shaun Port, managing director for everyday banking at Chase said the changes were made “to help new and existing customers make the most of their money”.

Mr Port continued: “We built the Chase saver account to help people grow their money while providing the ability to access their savings with no charges or fees from Chase.

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

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

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Those with a Chase current account can open the easy access saver with no minimum deposit, and customers can own up to 10 of these accounts at one time.

However, once the balance across all saver accounts reaches £500,000, 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 the first 12 months and five percent interest on round-ups.

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

However, while the new Chase easy access savings rate offers more competitive returns than it previously did, it still doesn’t exceed the current market-leading easy access rate.

According to Moneyfacts Best Buys, currently topping the leaderboard is HSBC with its Online Bonus Saver offering an Annual Equivalent Rate (AER) of three percent, calculated daily and applied to the balance monthly.

The three percent rate is awarded on up to £10,000 of the balance every month a withdrawal is not made, while 1.4 percent will apply to figures over £10,000.

This is an easy access account, which means savings can be withdrawn. However, it isn’t flexible and on the occasion that a withdrawal is made, a 0.65 percent standard rate will be applied to that month instead.

Yorkshire Building Society is also offering an AER of three percent on its limited access Internet Saver Plus (Issue 12).

The three percent rate applies to savings up to £5,000, while a 2.5 percent rate will apply on the balance over this limit.

Withdrawals are permitted on two days per year based on the anniversary of the account opening without any loss of interest, as well as closure at any time. The account can be opened with a minimum deposit of £1 and interest is paid annually on March 31.

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