JP Morgan’s digital bank Chase launches 1.5% saver as rate rise sparks battle for cash
JP Morgan’s new digital bank Chase is launching a savings account offering interest of 1.5% as rate rises look to spark a new savings war among lenders.
The new account is double the Bank of England base rate as Chase competes to snatch savers from the high street giants.
The investment banking is entering the savings market at a time when the average rates can hover anywhere between 0.75% and 0.9%. The offer is likely to be attract at a time when inflation is at it highest level in three decades, 6.2%.
The rate will be available to all new and existing Chase current account holders and will be promoted via the Chase app. It is the first product launch since Chase debuted last September.
Savers can deposit up to £250,000 and will have easy access to their money with no fees, charges or loss of interest. The savings account will be followed by an expansion of products last this year, with Chase understood to be eyeing lending and investment.
Shaun Port, managing director of savings and investments for Chase in the UK, said: “With the cost of living increasing, we know that consumers want to maximise the interest they can earn with the reassurance of being able to access their savings instantly.
“Savers can set up multiple accounts via the Chase app, each with a unique account number, making it easy to organise their savings for specific goals.”
JPMorgan Chase launched its new digital bank in the UK under the Chase brand in September last year and has competitors in its sector including digital pure plays Starling and Monzo. Traditional high street banks such as NatWest, Lloyds and Barclays have also invested heavily in improvements to their own app and digital offerings.
The launch of Chase marked marks JPMorgan’s first launch into the retail banking sector in its 222-year-history. The company is the largest investment bank in the US and services $3 trillion in assets.
On launch, Sanoke Viswanathan, head of JP Morgan’s international consumer division, said launching the Chase banking brand in the UK was a “very big strategic commitment” for JP Morgan and pledged to spend “hundreds of millions” if it had to on making the digital retail bank a viable proposition within the market.
