Chase boosts savings account interest by 5% earning ‘excellent’ rating | Personal Finance | Finance

Digital bank Chase raised the interest on its easy access savings account to 5% AER, earning an “excellent” Moneyfactscompare rating this week. Savers can deposit up to £3million in total and access their savings as often as they like, with no fees, charges or penalties.

The new rate, which includes a fixed 2.25% AER bonus for 12 months, is available to new customers who open the Chase Saver Boosted account. Commenting on the deal, Caitlyn Eastell, spokesperson at Moneyfactscompare.co.uk, said: “Chase has increased the rate on its Chase Saver With Boosted Rate this week. The account takes the market-leading position for its sector, paying an attractive 5.00% AER; however, this is inclusive of a significant 2.25% AER bonus for 12 months and is available to new customers only.”

The savings expert noted that the offer could be “ideal” for savers looking for a straightforward no-notice account, as withdrawals and further additions are permitted at any time. Ms Eastell said: “Many consumers will consider a bonus.”

There is no minimum opening amount required; however, there is a £25,000 daily external transfer limit, so consumers with larger pots may want to consider this. Ms Eastell added: “Overall, the account earns an Excellent Moneyfacts product rating.”

Customers can own up to 10 interest-earning savings accounts with Chase at a time, which the provider says can help people save towards different goals.

Savers aged 18 and over must have a smartphone with a UK mobile number to bank with the provider. They must also be a resident and tax resident of the UK only.

All deposits with Chase are protected up to a total of £85,000 by the Financial Services Compensation Scheme (FSCS).

What else is out there?

Atom Bank places just behind with an interest rate of 4.75% AER on its Instant Saver Reward account. There is no minimum deposit to launch, and up to £100,000 can be saved. Interest is also paid monthly, but at a lower rate during the months that a withdrawal is made.

Snoop, operated by Vanquis Bank, makes up the last of the top three, offering an interest rate of 4.6% AER on its easy-access savings account. Savers can launch the account with just £1, and interest is paid daily. Up to £85,000 can be saved overall, and withdrawals are not restricted.