Chase raises interest on easy access savings account to ‘excellent’ 4.75% | Personal Finance | Finance
Digital bank Chase has increased the interest rate on its easy access savings account to 4.75% AER, earning an “excellent” Moneyfactscompare rating.
There is no minimum deposit to open the account and the interest rate includes a 1.2% introductory bonus for six months.
Easy access accounts are typically more flexible, allowing savers to make payments and withdrawals with minimal restrictions and small opening deposit requirements.
Commenting on the deal, Rachel Springall, finance expert at Moneyfactscompare.co.uk, said: “Chase has revamped its easy access account this week by adding an introductory bonus to increase the overall rate.
“Now paying 4.65% gross / 4.75% AER monthly, the account grabs a prominent position in the top rate tables.
“Savers may wish to review the account in six months’ time, as this is when the bonus rate of 1.20% will expire.”
However, Ms Springall noted: “Those enticed by this deal will need to open a Chase current account to take advantage.”
She added: “Overall, the account earns an Excellent Moneyfacts product rating.”
Customers can own up to 10 interest-earning savings accounts with Chase at a time, which the provider says can help people save towards different goals.
Savers aged 18 and over must have a smart phone with a UK mobile number to bank with the provider. They must also be a resident and tax resident of the UK only.
All deposits with Chase are protected up to a total of £85,000 by the Financial Services Compensation Scheme (FSCS).
While Chase may be offering a more competitive rate, it isn’t currently topping the table in the easy access savings account sector.
Atom Bank’s Instant Reward Saver places top with an Annual Equivalent Rate (AER) of 4.85%.
There is no minimum deposit required to launch the account and interest is paid monthly. Up to £100,000 can be invested overall, however, there are some restrictions on withdrawals. A lower interest rate will be paid during the month a withdrawal is made.
For those looking for more flexibility, Gatehouse Bank offers the same rate of 4.75% as Chase.
Gatehouse Bank operates under Sharia principles, which means profit is earned instead of interest. Savers can launch an account with just £1 and up to £250,000 can be invested overall. Profit can be paid monthly or annually and there are no restrictions on withdrawals.
