JPMorgan has launched the company’s new digital banking chase in the UK. This means a new JP Morgan current account is available. So, is a 5% interest account good? Read on to find out.
What is the main details of JP Morgan current account?
Key Chase Key Features: New JP Morgan Current Account:
- Customers will get 1% cashback All Spend for 12 months
- It pays 5% interest All Round up storage for 12 months
- You can use it abroad without any fee and get MasterCard exchange rate
- The app provides different pots to divide your expenses into different categories
What are the positive aspects of the new JPMorgan current account?
The new JPMorgan current account has a lot of positives, at least for certain customers.
1% cashback on savings will work best for large consumers. It’s not limited, so you can get cashback on everything you spend for 12 months. It is more generous than other current accounts. There is no fee in the account that will eat this cashback.
The interest on savings is also positive. When you spend money using a chase account, you’ll have the opportunity to round up your spending to the nearest 1. This money then goes into a separate pot, which pays 5% interest.
For those who struggle to save, it can help them develop the habit of saving painlessly. The rate is much higher than most regular savings accounts and alternative current accounts.
However, other current accounts work differently, which means some people will still get higher interest on alternative accounts at lower rates. It’s important to look at your specific needs and spending habits and find out which account is best for you.
Another advantage of the new JPMorgan current account is that you can use the account abroad without paying a fee – this includes cash withdrawals. Customers also receive MasterCard exchange rates while abroad.
For app lovers, there is an added benefit. The Chase app provides individual pots for a variety of expenses. This can help you manage your budget more effectively. However, you need to use the app whenever you want to switch from the container you are taking money from.
What about the negative?
The new JP Morgan current account also has negatives.
First, the big draw – 5% roundup interest and 1% cashback – only lasts for 12 months. If these offers tempt you to get an account, you need to remember to switch after one year. However, if you know that you often forget to change accounts, this may not be the account for you. When these benefits disappear after one year, the new JPMorgan current account may be less attractive than other current accounts available.
It is also unclear how long these benefits will be on offer. It is not uncommon to offer a lot of benefits to attract customers for a new account. They can then scale them again after attracting enough users. If Chase becomes very popular in the UK, the benefits could return very soon.
Some rules were introduced after the global financial crisis of the 200th century to help protect consumers. This includes separating retail banking from wholesale banking. Banks like JP Morgan that have to comply with the ringfencing rules in both retail and wholesale banking.
To comply with these rules, Chase will have to keep his balance sheet below £ 25 billion. To do this, the new JP Morgan current account may have to cut some of its interesting features in a timely manner.
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