Bank with two million customers is making major change to popular savings account
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Chase is dropping the interest rate on its popular easy-access savings account next month. The interest rate on its Chase Saver account currently tracks at 1.25% below the Bank of England base rate, which is now 4.75%. But from February 19, the Chase Saver will start to track 1.5% below the Bank of England base rate. It means savers will see their interest rate go down from 3.5% to 3.25%.
If the base rate goes down again when the Bank of England meets on February 6, then this interest rate will change. UK and US headline interest rates are now forecast to fall to 4% by the end of this year. However, there is a way to boost your returns from Chase, which has two million customers - but only if you’re a new customer.
Newbies get an extra 1.5% bonus for six months only, and if you sign up within 31 days of opening the account. 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 5.01%. 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.
Chip currently tops the standard easy-access table with a rate of 4.83% – though if you make more than three withdrawals in a year, the rate will drop by 1.1%. Atom Bank also offers 4.83% but this drops to 3.25% in each month you withdraw from your account.
