Unsurprisingly the launch of another giant US bank into the UK market is newsworthy, although we’ll need to wait and see what savings accounts will be launched.
When Goldman Sachs launched the Marcus savings accounts in September 2018, it made a big splash by launching a market leading easy access account paying 1.50%, that stimulated some real competition as it was the highest rate seen for two and a half years (since March 2016) – it became known as the Marcus effect.
And in fact, although Chase.co.uk is not yet offering a savings account, there has already been a reaction from Marcus by Goldman Sachs.
Marcus has this week increased the underlying rate on its Online Savings Account to 0.50% - and with the 12-month bonus of 0.10%, that means that the account is back in our Best Buy table with a total rate of 0.60% AER – the best paying unrestricted easy access account currently available.
Remember, if you already have an account with Marcus your can log in and renew your bonus at any time, which means resetting the 12-month clock – so you can keep the extra 0.10% for longer.
What does this new current account from Chase.co.uk have to offer?
JP Morgan Chase has launched a new current account into the UK market, under the brand Chase (chase.co.uk).
The real headline grabbing features of this Chase current account are the 1% cashback for 12 months on eligible debit card transactions and most eye-catching is the 5% interest that can be earned on small change ‘round-up’ savings, again for 12 months.
‘Round-ups’ are when you agree to round-up any spending to the nearest pound and in the case of this current account, these pennies will be moved into a separate account and will earn 5% - not to be sniffed at, but let’s face it, the publicity will be far greater than the interest earned!
In addition to the 5% roundup account, the current account will also pay 1% cashback on a range of purchases made by debit card. So, spend £500 on eligible purchases and you could earn £5 in cashback. Once again, not to be sniffed at, although Chase has stated that ‘Round-ups will be rolled out to all customers over the coming weeks’ so it might not be immediately available.
The new current account is online only – in fact it needs to be opened via an app – so you’ll want your smartphone or tablet to hand. The bank will have no branches in the UK but they do say that they have a UK led customer support team who ‘with just a few taps’ will be available 24 hours a day, seven days a week – with no reliance on chat bots.
Additional plus side features are that there a no fees to pay to open a current account with Chase – and you don’t need to switch your main current account in order to benefit from the 5% roundup account and the 1% cashback. So it might be worth a try!
I have applied and the process was very straightforward and quick to do, although you will need to take a photograph of your passport or driving licence and take a selfie!!!
Of course, we will be sure to let you know when Chase launches its first savings account. Let’s hope that it creates more disruption and pushes best buy rates up again.