JPMorgan Chase & Co. (JPMC) is offering a 1.5% interest rate for savings account customers at its digital bank in the United Kingdom, Yahoo! Finance reported Monday (March 28).
The move is expected to start an interest rate war among financial institutions. The average rate for a saving account in the U.K. during the first quarter was 0.45%, according to Swanlowpark.
JPMC said the rate will be available for new and existing account holders. It will be promoted on the Chase app.
Last January, the financial giant announced the debut of its first overseas retail bank in its 200-plus-year history. Sanoke Viswanathan, head of JPMC’s international consumer division, said that the bank plans to invest in the new U.K. operation and make itself a “serious force” there.
Read more: JPMorgan Chase Plans Rollout Of UK Digital Retail Bank
The initiative, dubbed “Project Dynamo,” had been in development for two years. Viswanathan said the project will let customers do all their banking with JPMC and not have to use any other institutions within a few years.
Under the program, customers can deposit up to 250,000 pounds ($327,746). There are no fees. The savings account is expected to be followed by more products this year.
