It is the latest US banking operator to enter the UK savings market after Goldman Sachs, which launched its Marcus service in 2018. On AJ Bell Money & Markets, Laura Suter explained that she had ” high hopes “for this new account.
“It’s only on the rounding savings – so people might have used them already.”
“These are features that a lot of banks are offering right now where for every amount you spend, they round it up to the nearest pound and they put those extra pennies into a savings account.
“It’s kind of like an automatic backup.
“So for example if you spent £ 5.75 on your lunch that would round up to six pounds, and the £ 0.25 would be transferred to a savings account and at the end of the month you would hopefully be , amazed how much you have magically saved.
“So they’re paying a five percent interest rate on that savings, which is great rates, but it’s not going to be huge amounts of money, so you won’t be making royal savings on that.”
Chase will offer a few other services once it launches, such as free overseas spending, and an app packed with lots of fancy gadgets that will help people budget and save money.
“The big downside is that there is no overdraft, so it’s not useful for anyone who occasionally taps into its overdraft,” Ms. Suter explained.
Chase plans to launch more services soon and intends to offer everything that banks typically provide such as savings accounts, mortgages, overdrafts, etc.
Sanoke Viswanathan, CEO of the bank, commented: “We are offering people in the UK the opportunity to experience Chase for the first time with a simplicity-based checking account, a hassle-free rewards program and exceptional customer service.
The Chase checking account will launch with a rewards program offering 1% cash back on all qualifying debit card spending for 12 months.
According to Chase, this was developed in line with UK consumer debit card spending habits to ensure that all customers can enjoy rewards on many things they already buy every day.
This includes, but is not limited to, groceries, travel, meals, entertainment, fashion, housewares, electronics, as well as flights and vacations.