Chase, a subordinate bank of JP Morgan Chase, is offering customers a rate of 1.5% AER on its new checking account. This latest offer is available to all customers, whether existing or new, and can be accessed through the JP Morgan Chase app. The app includes 24-hour support for anyone who needs help with their savings account.
One of the many features of this latest savings account is that bank customers will be able to deposit up to £250,000.
Plus, they’ll be able to access their funds as often as they want with no fees, charges, or loss of interest.
Savers who decide to open an account with the bank can open multiple savings accounts to suit their financial needs and goals.
Each Chase savings account has a unique account number, which allows customers and bank relatives to pay directly from other providers.
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Additionally, each account can be named so that it can be personalized by the saver according to their saving or spending ambitions.
Shaun Port, managing director of Savings and Investments for Chase in the UK, explained why the bank decided to launch this product in the market.
Mr Port said: “With the cost of living rising, we know consumers want to maximize the interest they can earn with the reassurance of having instant access to their savings.
“We designed the Chase Saver account to offer our customers maximum flexibility alongside a competitive rate.
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“Savers can create multiple accounts through the Chase app, each with a unique account number, making it easy to organize their savings for specific goals.
“There are no fees or charges when customers withdraw money from their savings accounts, no monthly cap on the amount that can be saved provided the total savings is within the limit of 250 £000 for all savings accounts.”
This latest savings account on the market will come as a relief to everyday savers who have had little opportunity to increase their finances over the past two years.
Last month, the Bank of England’s Monetary Policy Committee (MPC) announced its third successive base rate hike to 0.75%.
Many criticisms have been leveled at the banks for not having passed on this increase in interest rates to their customers.
Janet Mui, head of market analysis at Brewin Dolphin, explained why savers have been missing out lately.
Ms Mui explained: “Savers are facing a double whammy with inflation above 5% and 13 years of rock-bottom interest rates.
“They’re losing money in real terms as inflation erodes the purchasing power of their money, and as we can see from the chart, it’s not an insignificant amount.”
Rob Burgeman, chief investment officer at Brewin Dolphin, suggests more people may end up choosing to invest rather than save due to soaring inflation.
He said: “While we advise our clients to have enough cash reserves to cover at least six months of expenses, significantly larger sums should be invested over the long term to avoid the corrosive power of high inflation that we currently know.
“People’s attitude towards taking a risk with their money varies. Some clients would prefer to take as little risk as possible, but want to invest enough of their portfolio to fight inflation. Others are willing to take on more risk for the potential for higher returns.
“If you choose the safest option of leaving your savings in cash, at least do so knowing that there is a cost – and, for now, a fairly substantial cost, and you are getting a negative return in real terms, adjusted for inflation, in terms of what your money can buy you.
