Chase bank UK: Everything you need to know about JPMorgan Chase’s digital bank, accounts and interest rates with UK launch

JPMorgan Chase has launched its digital banking brand, Chase, in the UK on Tuesday – here’s everything you need to know about the new digital bank app

Chase bank UK: Everything you need to know about JPMorgan Chase’s digital bank, accounts and interest rates with UK launch. (Images courtesy of JP Morgan Chase)

A new digital bank brand offering cashback and money management features has been launched in the UK by JPMorgan Chase as a rival to existing digital banking brands like Monzo and Revolut.

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The Chase brand already provides a range of financial services to more than 60 million households in the United States.

The numberless Chase debit cards will be made available to new current account holders in physical and digital form. (Image courtesy of JPMorgan Chase)

But what is Chase and how is it different to existing banking apps?

Here’s what you need to know.

What is Chase bank?

The digital banking service from finance giant JPMorgan Chase pledges to offer users a simple and streamlined digital banking experience, with 24 hour access to human customer support and no fees on opening a UK current account.

The JP Morgan brand has set up its Chase customer service centre at its site in Edinburgh, with hundreds of employees in the UK working on the launch and many more job opportunities being advertised for Chase UK in the Scottish capital.

Upon online sign-up at the Chase UK website customers will be directed to download the Chase app – letting them access their money on their phone around the clock alongside money management measures and cashback rewards.

Rewards are up for grabs for everyday debit card spending on its numberless debit cards, with an initial rewards programme offering one percent cash back on eligible debit card spends – including clothing, holidays, groceries and more - for 12 months.

This can be accessed both through the digital and physical versions of the Chase debit card as well as in the UK and abroad.

Details of the Chase debit card are stored behind a secure login on the Chase app, meaning that customers who lose their physical card won’t see their account details put at risk and can continue to access their debit card through their digital wallet.

The card, made from recycled plastic and fully recyclable, also doesn’t come with any charges for customers when travelling abroad, such as those typically encountered when withdrawing cash from cash machines in locations outside the UK.

What interest does Chase offer UK customers?

When Chase customers round-up their debit card purchases to the nearest pound, the small change will be added into a separate account where it will earn at least five percent interest for the first 12 months of their sign-up.

The round-ups will be made available to all customers over the coming weeks, the bank says.

How does Chase compare to Monzo, Revolut and more UK banking apps?

Laura Suter, head of personal finance at AJ Bell, said: "First impressions are that this new account will blow the competition out of the water, with an attractive cashback deal and a market-beating interest rate on its savings feature.

"The 1% cashback is better than rivals as it's on spending, rather than just certain bills or direct debits, and it also doesn't require a minimum monthly deposit or come with a fee.

"A cash round-up feature has become fairly commonplace with banks now, and it means each transaction is rounded up to the nearest pound, with the difference siphoned off into a savings account.

"But the fact that Chase is paying 5% interest on its round-up savings makes it very attractive."

Ms Suter added: "There will be some drawbacks for the account for some customers, as it doesn't have any bank branches, all the help and customer support is online or on the phone, and it must be run from an app.

"What's more, some people might be wary of the name as it's new to the UK market, although has a long history in the US."

While current accounts are the only accounts available for the time being, Chase says it expects to rollout further current account features, savings and investment accounts and lending products.

Additional reporting by PA Personal Finance Correspondent Vicky Shaw

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