Chase introduces new 1% interest on current account – ‘earn extra’

As consumers cut back on spending as a result of increased costs, high inflation, and a higher interest rate environment, customers of digital bank Chase can now earn interest on money they hold in their current account. The new offer comes in a move from Chase to help customers’ money “work harder” and earn interest on their salary before any bills are paid.

JP Morgan’s Chase was launched as a smartphone app-based bank in 2021 and has since amassed over 56 million customers across the US and the UK.

While Chase savers can currently earn a 3.1 percent AER on the easy access savings account, they will now also earn one percent AER interest on money they have in their current account.

Available to new and existing customers, interest will be earned across all Chase current accounts.

There are no minimum monthly deposit or direct debit requirements, no fees from Chase, and customers can pay in as much as they like.

Interest will accrue daily and be paid at the start of each month.

Shaun Port, managing director for everyday banking at Chase, said: “At a time when many need their money to stretch further, we’ve created a fuss-free option for customers to help them earn a little bit extra on their everyday banking.

“Earning interest on money held in your current account can get your money working harder, and is a smart way of earning interest on your salary before your mortgage, rent or bills leave the account.”

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Customers can set up multiple current accounts via the Chase app, and each will earn the one percent interest. People can have up to 20 accounts open with Chase at once, with a maximum of 10 savings accounts.

The introduction of current account interest complements Chase’s cashback offer, competitive rate Saver Account, and interest on small change round-ups, with customers rewarded when they spend, save, or just for having money in their account.

The Chase Saver Account, which is linked to the Current Account, offers an Annual Equivalent Rate of 3.1 percent.

Interest is calculated daily and awarded to accounts monthly, and unlimited withdrawals are also permitted.

While up to 10 saver accounts are permitted per customer, people can save up to £500,000 across them in total.

Chase’s two cashback offers include the 12-month introductory offer and the monthly cashback offer, which kicks in once the 12-month deal expires.

The 12-month introductory offer sees new customers earn one percent cashback on eligible everyday debit card spending for their first 12 months.

The more general monthly cashback deal offers similar terms, but customers need to pay £500 into their Chase current account each month (excluding internal transfers) to qualify.

It must be noted that cashback amounts will be capped at £15 per month for new applications from May 9, 2023, while the £15 monthly cap is already in place for the general deal.

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