Savers on the hunt for the best paying account have a new option from today - with a digital bank offering savers 1.5% on their money.
The savings account, which is available via Chase bank, is available via an app, and savers can earn cashback on top of their rewards.
While the account still pays below inflation at 6.2%, it is higher than the next top payer at 1% and it comes with no fees if you need to access your cash at the last minute.
Savers can deposit up to £250,000 in total at any time and can access their savings as often as they like, with no fees, charges or loss of interest.
The bank, part of US giant JP Morgan, has been around for two centuries, but it only launched in Britain last September.
It was originally known as the Bank of The Manhattan Company before merging with Chase National Bank in 1955 and becoming the Chase Manhattan Bank.
Shaun Port, managing director, savings and investments at 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."
In 2000, it was bought by JP Morgan and since become of the main banks in America, with almost 5,000 branches.
While it's US-owned, any savings that UK customers deposit are protected by the FSCS guarantee - that means £85,000 is fully insured.
The new account offers customers the chance to secure 0.5% more than any other savings provider, plus 1% cashback for a year on top.
The next highest deal is offered by Virgin Money. Its linked savings accounts for its current account customers pays 1% on balances up to £25,000, and 0.5% an anything above that level.
If you’re looking for a bigger variable rate, however, the Virgin Money M Plus account offers 2.02%, while the Nationwide FlexDirect offers 2% – though only on much smaller balances of up to £1,000 and £1,500 respectively.
The only obstacle is that the Chase savings account is available as an app only, so you'll need a smartphone to get the benefits.
It also offers a fee-free debit card abroad so you won't be charged any fees by Chase when using their card when traveling, including for cash withdrawals at ATMs.
The bank also doesn't currently offer joint accounts, so it won't necessarily work for everyone.
The Chase debit card also doesn't have a number. This means a smaller risk if the physical card is lost and a new card number can be generated straightaway, meaning a customer can continue to use the card digitally.
Andrew Hagger, founder of Moneycomms, believes the deal is just too good for rate starved savers to ignore. His only worry is that it won't last for long.
"There's no doubt that this is a stunning rate for an easy access savings account," says Hagger, "it is head and shoulders above the stand alone easy access best buys paying between 0.9% and 0.95%.
"This is clearly a carrot from the digital bank to try and drive new current account openings and in the current market l expect it will be swamped with applications.
"Let's just hope that the rate is more than a short term incentive that then gets cut just a few months down the line."
Eleanor Williams at MoneyFacts.co.uk said: "Following the recent base rate increases, it’s great for savers to start seeing higher rates offered on easy access accounts and see increasing levels of competition returning to this sector of the savings market.
"While the cost of living crisis continues, many savers may not want to lock their cash away in a fixed account and so this could well be an attractive option for those looking to keep their nest egg somewhere they can maintain flexible, unrestricted access to.”
