As living costs continue to place increased pressure on household finances, recent research reveals Britons have been prioritising savings accounts that offer short-term flexibility rather than long-term bonds. Easy access savers are a good option to support this, as these generally enable instant access with minimal restrictions, and Chase bank is one of many to have recently upped its interest rate.
The research, carried out by Chase, found that instant access to money without charges or fees is now the most important aspect for UK adults when choosing a new savings option. More than half (53 percent) of those surveyed said this is top of mind when looking for a savings account, and four in five (80 percent) said having flexibility made them feel more confident about their financial situation.
Shaun Port, managing director for everyday banking at Chase, commented: “Our research indicates that a squeeze on household finances is having a significant impact on how the nation is interacting with their savings, with many likely to be seeking out more flexible options. This includes options that offer the ability to move money to and from accounts when needed.
“The Chase Saver account offers many people the flexibility they need right now. Whether you need to access your funds quickly and without losing your interest rate, or if you have multiple savings goals you’re saving for, the Chase Saver account has been built to be flexible and personal.”
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JP Morgan’s Chase was launched as a smartphone app-based bank in 2021 and has since accumulated over 56 million customers across the US and the UK. Carrying out its first interest boost since its launch, the Chase Saver now affords customers a 2.1 percent Annual Equivalent Rate (AER).
Those who have a current account with Chase can open the easy-access saver with no minimum deposit, and customers can own up to 10 of these accounts at one time. However, once the balance across all saver accounts reaches £250,000, account holders won’t be able to pay in any more cash, but will still earn interest.
Interest is calculated daily and awarded to accounts monthly – unlimited withdrawals are also permitted. Chase bank accounts also offer a number of additional benefits, including a one percent cashback on everyday debit card spending for a year and five percent interest on round-ups.
Customers can also enjoy zero fees on transactions abroad, as well as in-app card control to freeze spending when they need to.
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However, while the Chase easy-access savings rate offers more competitive returns than it previously did, it still doesn’t exceed the current market-leading easy-access rate.
According to the money comparison site MoneyFacts, ranking top of the list of easy access savings accounts with the highest rates is Earl Shilton BS’ Progress account with an Annual Equivalent Rate (AER) of 2.85 percent.
Aimed at those aged between 18 and 50, this account pays a conditional bonus for limited instant access. It requires a minimum deposit of £100 to open and interest is calculated daily and compounded annually on the final day of February.
Up to six withdrawals are permitted per year to qualify for the 2.85 percent bonus rate and if any more withdrawals are made, interest will reduce to 1.8 percent.
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A minimum deposit of £1 is required to open the account and up to £50,000 can be invested. Interest is compounded and applied to the balance yearly, and withdrawals are also permitted. However, new customers must live within Cumberland’s operating area to open a Savings account.
Rachel Springall, finance expert for Moneyfacts said: “A flexible savings account is ideal for those who wish to deposit a small amount to start with, then boost the pot again when it suits.
“Having quick access to cash during uncertain times is wise as it could be used to cover unexpected costs at short notice. The attitude of savers could well be changing amid the cost of living crisis, but it’s crucial to have a savings pot as a safety net.”