The digital challenger will stop paying in-credit interest on current accounts for all customers from Monday 5 August 2024.
It comes after the app-only bank introduced the 1% interest on current accounts just over a year ago, in April 2023.
Chase said the move comes as it continues to offer customers products and features “best suited to their needs”.
Boosted bonus rate
To that end, it’s offering new and eligible customers a bonus rate on its easy-access saver account for a six-month period.
Currently, the easy-access saver account pays 4.1% AER (4.02% gross) variable interest, which is calculated daily and paid monthly.
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Savers can deposit up to £1m, though you’re reminded of the £85,000 Financial Services Compensation Scheme (FSCS) limit.
From today, a 1% AER bonus boost is available until Thursday 16 January 2025, meaning savers have access to 5.1% AER on their cash.
You can access your cash as often as is needed without penalty, and according to Chase, a saver who deposits £5,000 in the boosted product could potentially earn £125 in interest after six months.
It confirmed the 1% AER is fixed, so even if Chase’s standard saver variable rate changes – it’s tied to the Bank of England base rate at 1.15% below this – ahead of January, customers will continue to earn this additional 1% on top.
You can get this deal if you’re a Chase customer without a saver account, or if you have a combined balance of less than £50,000 in saver accounts at the close of Thursday 2 May 2024. Remember, you can have up to 10 saver accounts at any time, but only one will get the boosted rate.
If you already hold a saver account, once you log in to the app, go to the ‘save and invest’ tab, where you’ll see a text box with ‘boost your savings’. Click ‘see more info’, then ‘open a saver account’ if it’s the right product for you. You’ll be asked to agree to the terms and conditions.
When we tried this, the original Chase saver remained at 4.1%, which meant that a new savings account needed to be opened in order to get the boosted 5.1%. However, we were able to transfer money from the existing standard 4.1% interest-earning savings account to the 5.1% deal.
Meanwhile, new savers joining after 2 May can also get the bonus rate once you open a current account with the digital challenger.
How good is this?
Chase said this is a limited offer, so act quickly if you want in. When comparing it to competitors on the market, only Ulster Bank pays a higher rate, at 5.2% AER. However, it has a minimum £5,000 starting deposit and is available to existing Ulster Bank current account customers or those who open an Ulster Bank current account. The interest rate also drops to 2.25% if your balance falls below £5,000.
Alternatively, on the tax-free cash ISA side, savers can gain 5.17% AER with the Plum Cash ISA (minimum £100, mobile banking only) and an equal 5.10% AER on a minimum £1 with the Chip Cash ISA.
Shaun Port, managing director of savings at Chase UK, said: “We want to help customers make their money work harder while providing a simple and straightforward way to save.
“Easy-access savings is just one part of the Chase offer. Chase’s current account helps you manage your money in a way that suits you, while cashback offers on everyday debit card spending and interest on small change round-ups through Chase’s round-up account [are] a great way of maximising your spending.”
