JPMORGAN Chase is launching a new digital UK bank paying cashback and interest of 5%.
Customers can sign up at chase.co.uk, where they will be invited to download the Chase app.
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The fee-free current account will “help people budget, manage money, spend and save”. Customers do not have to pay in a certain amount each month to use the app.
Users will receive an inflation-busting 5% interest on round-ups.
These round-up your spending to the nearest £1, adding the difference to a savings account. For example, if you made a purchase for £1.63, this would be rounded up to £2, with 37p added to your savings.
The money is saved in a separate account and Chase automatically transfers that money to your chosen current account after a year. At this point you can start saving again.
There is no limit on the amount you can earn through these round-ups.
Another major appeal is that the account will offer 1% cashback on eligible debit card spending for 12 months after the account is opened. There is no cap on the amount of cashback you can earn.
The bank said customers can receive the cashback awards without needing to switch their bank provider, commit to a minimum account balance or set up direct debits.
The 1% cashback is paid when you use your Chase debit card for in-store or online purchases, both at home and abroad.
Laura Suter, head of personal finance at AJ Bell, said: “The cashback offer is very attractive and blows competitors out of the water.
“Other banks offer this but with catches, such as a fee on the account of having a minimum deposit amount each month.”
The fact the cashback is uncapped could prove particularly lucrative for big spenders, Suter said. If you spend £1,000 a month on your debit card, you’ll get £10 in cashback.
Suter added: “The 5% interest rate on offer for the round-up is unbeatable in the current market. Until recently, Chip was offering 1.25% on its cash round-up feature but this leapfrogs it by a mile.”
Chase said it had prioritised “simplicity, a fuss-free rewards programme and exceptional customer service” for the launch of its UK bank.
There will be no fees for using the debit card abroad, including for cash withdrawals at ATMs.
Customers will also have access to a UK-led customer support team, open 24 hours a day, seven days a week “with no reliance on chat bots”.
A spokesman said: “We know that people want good value combined with an excellent experience from a trust bank.
“With cashback on everyday debit card spend and interest boost on round-ups, we can help customers save while they spend on items they already buy.”
The bank said it plans to roll out a range of banking products in the future, including new current account features, saving and investment accounts and lending products.
Account holders will have a numberless debit card, so their account details are not at risk if they lose their card. Card details are instead stored securely in the app.
JPMorgan Chase is the largest consumer bank in the US, providing services to more than 60 million households across the pond.
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