JPMorgan’s digital bank, Chase, has launched a new UK savings account with 1.5% interest, offering customers better deals after the Bank of England hiked rates, outpacing high street rivals.

UK savers under pressure as inflation hits 30-year high of 6.2% last monthrising further in April as regulated energy prices are set to rise and the war in Ukraine raises concerns about the cost of fuel and other commodities.

“As the cost of living increases, we know consumers want to maximise the interest they can earn, while still having immediate access to their savings,” said Shaun Port, UK managing director of savings and investments at Chase.

Linked to the digital bank’s current account, Chase’s new easy access account will allow depositors to deposit up to £250,000 in total, which can be accessed at any time. Customers can open up to 10 separate savings accounts.

Andrew Hagger, personal finance writer for Moneycomms.co.uk, said: “This is clearly the carrot of a digital bank trying to drive new current account openings and in the current market I would expect it to be inundated with applications.”

Other lenders will raise rates on their savings accounts next month, but not by the same amount. Rates on instant savings accounts at Lloyds Bank and NatWest will rise to 0.1 per cent from 0.01 per cent, although other products will see bigger increases.

Hagger said that while Chase has no minimum income requirements for current accounts, it requires smartphone access and does not currently offer joint accounts, which could limit some customers.

“Let’s just hope that rates are more than a short-term incentive and then get cut in a few months,” he said.

JPMorgan launched Chase Bank last year in the UK retail market, the first overseas retail bank in the company’s 222-year history, and decided with Goldman Sachs. emission Consumer bank Marcus was launched in 2018. Chase initially only offered checking accounts with a rewards program.

The UK retail market, with its strong fintech scene and well-established payments infrastructure, has been an attractive test bed for US banks looking to expand their digital offerings. Open banking standards are designed to give customers more control over their data and, in theory, make it easier for them to switch banks.

This month, the Financial Times reported that the decision to launch catch up Competitors such as Citigroup are scaling back their business as they compete with digital players such as Revolut, Monzo, Starling and a range of high-street brands. International Business.

Efforts by the big banks to launch digital brands have been mixed. JPMorgan’s first U.S. bank, Finn, closed a year later. NatWest’s homegrown digital bank Secondo It closed in 2020 and lasted less than six months.

Soaring inflation is now expected to hit 8% by the end of June, adding to concerns about the impact on the cost of living. Earlier this month, the Bank of England raised its key interest rate to 0.75% from 0.5%.