Chase Bank's round-up feature offers a simple way to boost your savings effortlessly by rounding up your everyday card transactions.
Understanding Chase Round Up
The round-up feature is designed to help you save automatically by collecting small amounts from your spending. Here’s how it works:
- Automatic Rounding: When you make a purchase using your Chase card, the transaction amount is automatically rounded up to the nearest whole pound.
- Dedicated Account: The difference, or "change," from each rounded transaction is then transferred from your main account into a special round-up account.
- Interest Earning: The funds held in your round-up account accrue interest, helping your savings grow over time. This account offers a 5% AER (4.89% gross) variable interest rate.
Key Characteristics of the Round-Up Account
The round-up account has specific functionalities and limitations to ensure it primarily serves as a savings tool:
- Exclusive Deposit Method: Funds can only be added to your round-up account through the round-up function triggered by your card transactions. You cannot make direct deposits into this account using other methods.
- No Direct Spending: The round-up account is solely for saving. You cannot directly spend money from it. If you wish to use the funds, you would need to transfer them back to your main Chase current account first.
- Automatic Savings: This feature automates the saving process, meaning you save a little bit with every card purchase without actively thinking about it.
Summary of Round-Up Features
For a quick overview, here are the key features of the Chase round-up service:
| Feature | Description |
|---|---|
| Activation | Requires opening a dedicated round-up account. |
| Trigger | Automatically applied to each card transaction. |
| Rounding Logic | Rounds up the transaction amount to the nearest full pound. |
| Fund Destination | The "change" is transferred to your round-up account. |
| Interest Rate | Earns a 5% AER (4.89% gross) variable interest rate. |
| Deposits | Only via card transaction round-ups; no other deposit methods. |
| Withdrawals | Cannot be spent directly; funds must be transferred to your main account. |
This system provides a seamless way to build up your savings passively, making it an ideal tool for those looking to save without significant effort.
