Chase has announced a new interest rate increase on its easy access saver account from an Annual Equivalent Rate (AER) of 3.1 percent to 3.3 percent, raising its position in the market.
The new rate change will take effect on Monday, May 22, and will automatically be passed on to all existing and new customers.
Commenting on the increase, Shaun Port, managing director for everyday banking at Chase, said: “We’re increasing the rate on our saver account to help customers make their money work harder while providing a simple and straightforward way to save.
“Having greater flexibility and access to savings, without being charged fees, is important for people when managing their money and supports them in reaching their saving goals.”
He added: “To make your money stretch even further, you can now earn interest on the money held in your Chase current account. This is a smart way of earning interest on your salary before your mortgage, rent or bills leave the account.”
READ MORE: Yorkshire Building Society boosts interest rates on savings by 0.25%
Easy access savings accounts have been growing in demand in recent months, as rapidly rising living costs have left more Britons requiring increasing and instant access to their savings.
These accounts are typically the most simple savers to manage. They enable people to make payments and withdrawals with minimal restrictions and small opening deposit requirements.
Those with a Chase current account can open a Saver Account with no minimum deposit, and customers can own up to 10 of these accounts at one time.
Once the balance across all saver accounts reaches £500,000, savers won’t be able to pay in any more cash, but will still earn interest.
Interest is calculated daily and awarded to accounts monthly, and unlimited withdrawals are permitted.
Chase bank accounts also offer a number of additional perks, such as a one percent cashback on everyday debit card spending for the first 12 months and five percent interest on round-ups paid monthly.
Customers can also enjoy zero fees on transactions abroad, as well as in-app card control to freeze spending as and when.
But while the Chase Saver Account will offer a much more competitive rate, it won’t be topping the leaderboard. Yorkshire Building Society will be hiking its interest rates by 0.25 percent next week, offering 3.85 percent on its Rainy Day Saver (Issue Two) on May 17.
The 3.85 percent will be applied to balances up to £5,000, while a slightly lower 3.35 percent will apply to the rest.
Savers can open the account with just £1 and up to £500,000 can be invested overall. Interest is calculated daily and applied annually on March 31.
However, the account only offers unlimited withdrawals with loss of interest on two days per account year based on the anniversary of opening. Although people can close their accounts at any point without impacting interest.
Wealth app Chip is also offering a competitive AER of 3.71 percent, but with fewer restrictions.
The account can be opened with a minimum of £1 and withdrawals are permitted without penalty. As it’s an app-based account, savers must be comfortable opening and managing it online via mobile.
Up to £250,000 can be invested overall and interest is calculated daily and paid monthly on the fourth working day.
