A bank has launched a new savings account offering a “competitive” 6.5% AER interest rate. Chase announced its latest savings offer on Thursday (October 1). A subsidiary of JPMorgan Chase, the lender said its Regular Saver account aims to help customers make “meaningful” progress towards their savings goals.
Shaun Port, Chase’s Managing Director for Daily Banking and Savings, said: “Whether customers are saving for a holiday, home improvements or longer-term financial ambitions, savings goals are normally achieved by setting money aside consistently over time.” He added: “Our Regular Saver is designed to help customers do exactly that, combining a competitive fixed rate with a simple way to build towards their financial goals.”
Chase customers who already have a current account with the online-only bank can save up to £300 a month at 6.5% interest. It means someone saving the maximum each month could build up to £3,725 after 12 months, including £125 worth of interest.
The rate is fixed for 12 months, after which customers’ savings are transferred to another Chase account. However, the Regular Saver automatically continues, which Chase said makes it easy to keep building savings without having to open a new account.
There are no penalties if customers need to withdraw from the account, which calculates interest daily and pays interest on a monthly basis. Note that on regular saver accounts, you do not get the headline rate on the full amount paid in.
George Sweeney, personal finance expert at Finder, said Chase’s move makes it an “even more tempting destination” for savers as it also offers an easy access savings account paying 4.5% and a cashback offer of 2% on everyday spending.
He told The Independent: “However, the lack of a switching bonus, when so many banks are currently running them, may dampen the incentive to move compared to others on the market.”
This is because these offer annual rates that let you add cash each month. So while the first month’s payment benefits from Chase’s full 6.5% rate, for example, the second month’s payment will receive eleven-twelfths of 6.5%. The third monthly payment will gain ten-twelfths of it and so on.
Chase’s Regular Saver rate compares with Santander’s Regular Saver rate of 8%, which includes a bonus, and First Direct’s Regular Saver 12 month bond account, offering 7%.
The same rate is on offer from The Co-operative Bank’s Regular Saver Issue 1, while Nationwide’s Flex Regular Saver Issue 7 has a 6.5% rate, according to Moneyfacts.
