Chase hikes its savings interest rates in a bid to boost customer growth

 Chase, the neobank from JP Morgan that launched just one year ago, has raised the savings rates it offers on deposits. 

Its saver account interest rate will jump from 1.5 per cent AER (1.49 per cent gross) variable to 2.1 per cent AER (2.08 per cent gross) variable. The new rate will come into effect on 24 October 2022.

Just 12 months after launching in September 2021, JP Morgan’s Chase neobank has reached one million customers in the UK. wq

Chase offers a number of cash incentives as part of its customer acquisition strategy including purchase round-ups earring 5 per cent interest for 12 months. While this has proved successful in landing customers, the costs are high. JP Morgan has stated on several occasions, however, that it is willing to spend hundreds of millions of dollars per year on the project.

Launched in September 2021, the app-based bank also has a rewards programme that offers its one million customers 1 per cent cashback on all eligible debit card spend for 12 months. 

Its competitive rates, which are not the highest in the market, have resulted in £10bn of customer deposits and a faster route to hitting the one million customers milestone that its fintech competitors such as Revolut or Monzo.

Chase's customers have, on average,  a high amount in the Chase Saver account of £27,000. This is markedly higher than the national average of savings of £23,000.

“We set out to offer customers good value banking products with a straightforward experience delivered through an easy to use app, and we’re excited that consumers have responded so positively to our offer in our first year,” said Sanjiv Somani in a recent press statement.