Kroo and Chase boost their interest rates by 0.5%

Kroo Bank increases its current account interest rate to 4.1% AER, while Chase’s saver interest rate now stands at 3.8% AER.

Following on from the Bank of England’s latest base rate rise, both Kroo and Chase have increased their interest rates by 0.5% – directly passing the rate hike on to their customers.

What’s Kroo’s interest rate?

Kroo’s current account rate has risen from 3.6% to 4.1% AER. Interest is calculated daily and paid monthly. The rate is available on deposits up to £85,000.

If you open an account with Kroo, you’ll also benefit from its online banking app where you can create and manage your current account free of charge, track real time transactions and calculate shared expenses. Kroo also has zero fees on spending abroad.

What’s Chase’s interest rate?

Chase offers 2 savings accounts.

First, its linked saver account. This account’s interest rate has risen from 3.3% to 3.8% AER which can be applied to savings up to £500,000. Like Kroo, Chase pays this interest monthly.

However, other aspects of this savings account stand out. Chase promotes the option to open multiple savings accounts. The interest rate can be applied on up to 10 accounts, as long as the total savings do not exceed £500,000. There’s no minimum deposit required for these accounts.

Chase also offers 5% AER with its “round-up” account. This account rounds up your daily transactions to whole numbers and puts the “spare change” into a savings account. For example, if you buy yourself a £3.60 coffee, Chase will charge you £4 and put the extra 40p into the round-up account. As with the saver account, you can transfer money out whenever you’d like.

After a year’s worth of saving, the balance will automatically be transferred to your Chase current account.

How do these accounts compare?

Competition among savings accounts providers has increased, and some accounts come with a bonus to lure customers. Digital banks have been fast to respond to changes in interest rates recently, with Kroo and Chase offering some of the most competitive rates we’ve seen. Whereas other, more traditional banks, have been slower to up their savings rates.

If you’re in the market for an easy access account, take a look at our best instant and easy access savings accounts for 2023.