Home Money Last chance to get Chase Bank’s easy-access 5.1% savings offer: Is it worth taking advantage of?

Last chance to get Chase Bank’s easy-access 5.1% savings offer: Is it worth taking advantage of?

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Is it worth the switch?: JPMorgan-backed Chase has a 1% bonus rate on its Easy Access Account that ends tomorrow
  • Chase’s 1% Easy Access Bonus Ends Tomorrow, July 17th for New Customers
  • The underlying rate is 4.1% and will be available to new customers who sign up.
  • We analyze whether it is worth moving your money to make the deal.

Tomorrow is the last chance for savers to get Chase Bank’s Easy Access Offer paying 5.1 percent.

Chase Bank’s enhanced Easy Access rate for new customers will end at midnight on July 17 and comes with a 1 percent bonus that will run through January 16, 2025.

The underlying rate is a variable 4.1 percent, which is what savers will get after the deadline.

We look at whether it’s worth moving your money to Chase’s Easy Access account if you don’t already have a Chase account.

Is it worth the switch?: JPMorgan-backed Chase has a 1% bonus rate on its Easy Access Account that ends tomorrow

Is it worth moving your savings to Chase?

In June, JPMorgan-backed Chase added a 1 percent bonus rate to its 4.1 percent Easy Access Account, bringing it to a best buy of 5.1 percent.

Chase’s underlying rate of 4.1 percent is a variable rate and could change before January 16, 2025.

But the 1 percent increase is fixed, so even if Chase lowers the account rate before Jan. 16, 2025, customers will still earn 1 percent on top of the new rate if it changes.

The variable rate of 4.1 percent is 1.15 percent below the Bank of England’s base rate.

At the beginning of the year, the general consensus was that the base interest rate would be cut six or seven times this year, with the first cut coming in March.

However, due to persistent inflation readings, both here and in the United States, no base rate cut materialized.

Markets now expect the base rate to be cut only once or twice this year, with the first cut coming in August or September, after remaining at 5.25 percent since August 2023.

James Blower, founder of Savings Guru, said: “Financial markets are pricing in a roughly 65 per cent chance of a base rate cut to 5 per cent in August and, failing that, a near 100 per cent certainty of one in September.”

If the Bank of England were to cut the base rate to 5 percent in August or September, the Chase easy rate would fall by 1.15 percent to 3.85 percent five days after the cut.

This would mean that savers who did not get the 1 percent bonus would see their rate reduced to 3.85 percent, while savers who have the rate increased until January 2025 would get a rate of 4.85 percent.

Blower said: ‘If there is no base rate cut, then the Chase rate looks hard to beat and it is definitely worth securing the bond before it goes down tomorrow.

‘If so, the question is what a blended rate of 4.85 percent (3.85 percent plus a 1 percent bonus) with a base rate of 5 percent looks like.

‘The answer is that I expect it to remain very competitive, so it’s probably a very good deal for savers.

‘However, once the bond defaults in January, the underlying rate of 1.15 percent below the base rate will almost certainly be very uncompetitive.

“So the end of the bonus in January is likely to be the time to move your money elsewhere.”

Chase’s Easy Access Account requires a checking account that savers can open in the Chase app.

The Chase account also comes with 1 percent cash back for the first year of having the account.

Chase will stop paying all customers 1 percent interest on their checking account balances starting August 5.

How to get a better savings deal

This is Money’s Easy Access Best Buy charts still feature easy access accounts that pay rates of 5 percent or more

Monument Bank Easy Access Account It pays 5.03 per cent. It has a high minimum deposit of £25,000. This account can be opened on the Monument Bank app.

Oxbury Bank It has an easy access account that offers 5.02 per cent. It has a minimum deposit of £20,000 and can be opened online. It is a limited easy access account, so you could withdraw from the sale at any time.

Both Monument and Oxbury accounts are taxable and savers can keep more of their interest by taking out a cash ISA instead.

Get a cash ISA for the best returns

The products featured in this article are independently selected by This is Money’s specialist journalists. If you open an account using links marked with an asterisk, This is Money will earn an affiliate commission. We do not allow this to affect our editorial independence.

With savers paying more tax due to high interest rates and a frozen personal savings allowance, savers with larger funds would do well to consider an easy-access cash ISA to take some of their interest out of the hands of the taxman.

Plum Easy Access Isa* It pays 5.17 per cent, making it the best overall rate for an easy-access cash ISA, but this includes a 0.86 per cent bonus for 12 months and those who make more than three withdrawals in a year see the rate drop to 3 per cent.

The other drawback is that it isn’t flexible. A flexible ISA allows you to take money out and put it back in without using any of your annual ISA allowance. The only caveat is that you must replenish the cash in the same tax year.

The best easy-access flexible cash ISA comes from Chip* by 5.1 percent, while Zopa pays 5.08 percent – ​​both are app-based accounts.

Paragon Bank ISA It is also flexible and pays 4.95 percent. It can be opened online, but only allows two withdrawals per year before the rate drops to 1.50 percent.

Yorkshire Building Society Easy Access Cash ISA* It pays 4.5 percent and is flexible, with no limits on withdrawals.

> Five of the best cash ISAs: Here’s Money’s pick of the best deals

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Affiliate links: If you purchase a product This is Money may earn a commission. These offers are chosen by our editorial team as we believe they are worth highlighting. This does not affect our editorial independence.

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