Chase is cutting the interest rate on its popular easy-access savings account from today. The interest rate on its Chase Saver account currently used to track at 1.25% below the Bank of England base rate - but as of February 19, the Chase Saver now tracks 1.5% below. It means the current rate is now 3%. It was previously set at 3.5% but this was cut by Chase to 3.25% last week, after the Bank of England reduced its base rate from 4.75% to 4.5%.
However, there is still a way to boost your saving rate from Chase, which has two million customers - but only if you’re a new customer. Chase newbies currently get an extra 1.5% bonus for six months only. While the news of its rate cut will no doubt be disappointing news for Chase customers, there are actually other savings accounts that pay a higher interest rate.
Cash ISAs currently pay the best rates, with Plum offering 5.05%. While the news of its rate cut will no doubt be disappointing news for Chase customers, there are actually other savings accounts that pay a higher interest rate. Cash ISAs currently pay the best rates, with Plum offering 5.05%.
You can only deposit £20,000 each tax year into an ISA but any interest you make is tax-free. Keep in mind this account from Plum comes with a maximum of three penalty-free withdrawals a year. Monument Bank currently tops the standard easy-access table with a rate of 4.75% – though there is a minimum deposit of £25,000 and you can only make three withdrawals a year.
Coventry Building Society offers 4.66% and this comes with a minimum £1 deposit, although there is a maximum withdrawal limit of five a year. The top rate for unlimited withdrawals is Chip and this pays 4.58%. Regular saving accounts pay more than all of the above - but you're limited to how much money you can save each month.
For example, Principality Building Society lets you save up to £200 each month with a 8% fixed for six months. For an account with a longer term, First Direct lets you save £300 each month at a rate of 7% fixed for one year. Co-op also pays 7% variable on up to £250 a month.
