JP Morgan launches bank account paying 5% interest – we check if its any good

The US banking giant is trying to make waves in the UK with a fancy new savings account and cashback deal. We take a look at what the bank is offering to see if it’s worth your money

Savers can soon get unheard-of 5% returns on their cash with a new current account called Chase.

Chase is part of massive US bank JP Morgan Chase, which is trying to break into UK retail banking and compete with high street banks.

The current account is not yet live, but its interest rate, which compares to 2% rivals in the market right now has made the offering pretty attractive.

The main perk is a 5% savings deal – far, far more than you could get elsewhere.

It’s a crowded marketplace, and Chase will need to offer something very interesting to break in successfully.

Here’s what we think so far.

Is the Chase deal any good?

In short, yes, if it keeps to its promises.

Would you sign up to the deal? Let us know in the comments below

The current account is not yet live, though Chase has opened a waiting list.

But it has made the current account pretty attractive.

The main perk of the current account is a 5% savings deal – far, far more than you could get elsewhere.

The best interest rate on any current savings deal is 2%, from Recognise – but you’d need to lock your cash away for five years to get that.

The 5% Chase deal works by rounding up your spending to the nearest £1, then adding the difference to a separate savings pot.

Interest is paid monthly, but the bank has not yet revealed the full details of the deal.

The Chase website said: “You can keep your round-up balance growing throughout the year, or withdraw your money early for a little treat. So whatever you’re saving for, you’ll have easy access to your money when you need it.”

“Just so you know, after a year, we’ll automatically transfer your remaining round-up balance to your chosen Chase current account, and you’re free to start saving all over again.”

Chase’s second big draw is a debit card that offers 1% cashback for a year.

This is made out of recycled plastic, with no bank account number – which Chase says makes it more secure.

There are some strings attached – it won’t allow cashback when you buy items like a car, cryptocurrency or art, for example.

Your cash is protected up to £85,000 by the Financial Services Compensation Scheme if Chase should go bankrupt or stop trading.

JP Morgan Chase chief executive of consumer & community banking Gordon Smith said: “We are bringing Chase to the U.K. because we want to provide customers with a new banking choice – one that will enable them to benefit from a simple and exceptional banking experience, built on the significant capabilities of JPMorgan Chase.

“The UK has a vibrant and highly competitive consumer banking marketplace, which is why we’ve designed the bank from scratch to specifically meet the needs of customers here.”

The last big US bank to try to crack Britain was Goldman Sachs, which launched its Marcus brand in 2018 with an easy access account.

At the time it grabbed attention for paying 1.5%, far more than the average 0.6% for the typical easy access deal.

However, despite promising it would always stay competitive and within the top five deals, the Marcus deal now pays the good – but not great – rate of 0.5%.

This makes it the joint-ninth best deal, according to financial experts Moneyfacts.

The top easy access deal pays 0.6%, from Buckinghamshire Building Society.