UK challenger bank Chase has increased the yields on its savings accounts in a bid to attract cash-strapped savers after the Bank of England increased its benchmark interest rate for the 14th time in a row.
JP Morgan-owned challenger Chase upped the rate on its easy-access account* by 0.3%, on August 14, 2023, bringing the Annual Equivalent Rate (AER) to a competitive 4.1%. The new rate will automatically be passed on to all existing and new customers.
“We're committed to helping our customers reach their savings goals which is why we're continuing to pass on interest rates where we can,” Chase everyday banking managing director Shaun Port says.
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“With the cost of living remaining high, we know customers value flexibility and easy access to their money, without being charged fees, so they can manage their money effectively.”
An easy-access account is a savings account that allows you to earn interest on money that you pay in. Another key feature is flexibility, as you can usually dip into your savings whenever you want. See our guide to easy-access savings accounts to find the best rates on the market.
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What to know about the Chase saver account
Savers can deposit up to £500,000 with Chase, which comes with FSCS protection up to £85,000 per person. You are required to have a Chase current account* in order to open the Chase saver account. Chase does not require you to pay a minimum amount into your account each month.
The online bank is the latest in a race among banks to raise interest rates across products, offering savers some of the highest returns on record.
- Nationwide’s Triple Access Online Saver will see an increase of 0.75% to pay 4.25% while those on the Flex Instant Saver 2 will see a 0.25% bump, to 3.25%, next week.
- Skipton Building Society has announced it will automatically add 0.25% to its variable rate savings accounts. This will bring its average variable rate to 3.66%.
- Monzo has increased its interest rate on personal and joint savings accounts from 3.7% to 4% — its fourth rate increase in the last eight months.
- Shawbrook Bank is at the top of the table, offering a rate of 4.63% interest and unlimited withdrawals.
- The Chip Instant Access Account also offers an attractive rate of 4.51%, and you can open the saver with just £1.
The Bank of England recently hiked interest rates from 5% to 5.25%, marking the 14th increase in a row. While this has impacted borrowers, it's providing healthy returns for savers.
Although inflation fell by much more than expected in June and at 7.9% is at its lowest level in over a year, it remains nearly four times higher than the Bank's 2% target.
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