The digital bank now offers the highest paying easy-access option.
Since its launch last Autumn, Chase Bank has been one of my top picks, largely thanks to the 1% cashback for 12 months. Well, it’s now got better with a market-leading saving account added for new and existing customers. Here’s what you need to know.
What is Chase Bank?
Chase is the first UK bank from financial giants JP Morgan Chase. The current account is a digital-only bank that can only be opened and managed via a smartphone.
The big offering so far has been the 1% cashback on most purchases for 12 months and 5% interest on “round ups”, helping make the account my top one for spending and home and abroad (it’s fee free overseas).
Other interesting features include the ability to set up multiple sub-accounts within the main account that have their own account numbers. Now that direct debits have been added, this allows you to pay bills from different pots and even select which one funds your debit card before each transaction. You can read my full review here.
What is the new Chase savings account?
You’ll be able to earn 1.5% AER on balances up to £250,000. It’s a variable rate so it could change (up or down) in the future.
This rate will be on up to 10 savings accounts held within the app, though the £250,000 limit is across all of them rather than each one. Remember your money is only protected up to £85,000 under the Financial Services Compensation Scheme if Chase goes bust.
You can give each account a name (eg “holiday”) and set targets for how much you’d like to save in each one. This is a handy feature if you are saving for different things.
It’s an easy access account so you can take the money out whenever you want, and there is no restriction to how much you can pay apart from the overall limit.
You can’t connect the debit card to the savings account to spend from it so you’ll have to move the money into the main current account to spend it.
To get the new savings account you must have the Chase current account, and it’s managed via the app. You’ll might need to update to the latest version of the app running to set them up, though it was there this morning in my account.
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How does it compare to other savings accounts?
For pure easy access, with a high upper limit, the Chase saver account is well ahead of the next best, currently 0.9% from Atom. Save £5,000 in Chase over Atom and you’ll make £75 in a year rather than £45.
It’s better too than the Virgin M Saver, which launched last month, paying 1% on up to £25,000. However, that account comes with the Virgin M Plus current account which pays 2.02% on £1,000. A balance of £5,000 across both Virgin accounts would net you £60.20 in a year.
However if you switch to Virgin that initial rate on the £1,000 jumps to 5.02% for a year, adding up to a total of £90.20 on £5,000.
Is it worth moving your money?
I’d say yes, as it’s such a significant jump from other accounts. If you already have a Chase account there’s very little effort to do this. And if you don’t it gives you the additional benefits of 1% cashback for a year.
However, I’d still stick my first £1,000 in a Virgin M Plus account. Not only is it a higher rate, but it gives you another separate pot, hand in case there are app issues.