Earn 5% interest on savings through everyday spending with Chase bank – are you eligible?

Martin Lewis provides advice on savings accounts

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App-only challenger bank Chase launched a unique way of spending and saving with its current and savings accounts back in March. If a person has a Chase current account and makes a purchase on their debit card with it, then Chase will allow them to round up the purchase to the nearest pound. If the spender allows this, Chase will then pay the difference into the person’s savings account. For example, if a person made a debit card purchase for £10.60, Chase would then round it up to £11 and put the 40p in their savings account.

This account then pays five percent AER interest.

Chase will calculate the interest daily and then pay it monthly into the account.

As the account is easy access, it means that Britons are able to withdraw their funds and spend the money whenever they like

However, if they leave the money alone, then it will continue to earn the five percent interest.

After a year, Chase will automatically transfer the round-up balance to a person’s Chase current account, and the process starts all over again.

Rounding up is the only way that Britons can put money into the account.

This means that the only way a person can build up their savings pot is to use their Chase debit card for everyday purchases.

The bigger the amount rounded up, the quicker a person can increase their savings balance.

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If a person spent £1.01, then the round up would be to £2 and the 99 pence would be transferred to the savings account.

Sadly, savers can only have one round up account at any given time, and people must have at least one account with Chase in addition to the round up account.

As it’s a savings account, people can’t spend directly from the account, so cannot make debit card payments, set up direct debits or standing orders, or have an overdraft.

The round-up account can be closed at any time without charge and with all interest and funds being transferred to the saver’s account of choice.

If someone decides to close all of their accounts with Chase, they will transfer any remaining funds in the round-up and close it when the last account is closed.

If the round up savings tactic is not a person’s cup of tea, then Chase’s savers account currently offers a 1.5 percent AER interest or 1.49 gross variable.

There are no monthly caps on how much can be saved, however the total savings need to be within the £250,000 limit.

This account also pays the interest accumulated monthly.

Again, this account is easy access so savers can withdraw the money when they want and there is no limit to how many savings accounts a person would like to open.

Each will receive a unique number to distinguish the accounts from one another so they are easy to organise on the Chase app.

Savers can also personalise the accounts with labels that indicate what they are saving for to keep their goals at the forefront of their savings journey.

When launched, Shaun Port, managing director of savings and investments for Chase said: “With the cost of living increasing, we know that consumers want to maximise the interest they can earn with the reassurance of being able to access their savings instantly.

“We have designed the Chase saver account to provide our customers with maximum flexibility alongside a competitive rate.”

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