JPMorgan's U.K. digital bank launches savings accounts

JPMorgan Chase’s fledgling digital bank is going after more customers in the U.K. with a new savings account. 

Chase, which launched in the U.K. last September, will offer a variable interest rate of 1.5%, the company said on Monday. That’s more than double the rate offered by similar online banks including Goldman Sachs Group’s Marcus.

Christopher Dilts/Bloomberg

Deposits will be capped at 250,000 pounds ($329,980) and no fees or charges will apply to move money out, it added.

“With the cost of living increasing, we know that consumers want to maximize the interest they can earn,” said Shaun Port, managing director for savings and investments at Chase in the U.K. Inflation in the country is at its highest in three decades. 

While Chase is among the dominant retail banks in the U.S., it’s just striking out in the British consumer market that’s long been dominated by a handful of lenders. In recent years, though, digital startups have emerged such as Monzo Bank and Starling Bank. Wall Street rival Goldman Sachs launched Marcus in 2018 and currently offers an interest rate of 0.7% on flexible saving accounts.