Chase Bank makes main change to its common financial savings account – what it’s good to know
Interest rates are now predicted to fall to 4% by the end of this year but despite this, there is a way for new customers to boost their returns from Chase, which boasts two million customers
Chase is set to reduce the interest rate on its popular easy-access savings account next month. The Chase Saver account currently tracks at 1.25% below the Bank of England base rate, which stands at 4.75%.
However, from February 19, the Chase Saver will start to track 1.5% below the Bank of England base rate, meaning savers will see their interest rate decrease from 3.5% to 3.25%. If the base rate drops again when the Bank of England meets on February 6, this interest rate will change.
UK and US headline interest rates are now predicted to fall to 4% by the end of this year. Despite this, there is a way for new customers to boost their returns from Chase, which boasts two million customers.
New customers receive an extra 1.5% bonus for six months only, if they sign up within 31 days of opening the account.
While the news of its rate cut may be disappointing for Chase customers, there are other savings accounts that offer a higher interest rate.
Cash ISAs currently offer the best rates, with Plum offering 5.01%. You can only deposit £20,000 each tax year into an ISA but any interest you earn is tax-free, reports the Mirror.
Bear in mind this account from Plum allows a maximum of three penalty-free withdrawals a year.
Chip currently leads the standard easy-access table with a rate of 4.83% – however, if you make more than three withdrawals in a year, the rate will decrease by 1.1%.
Atom Bank also offers 4.83%, but this falls to 3.25% each month you withdraw from your account.
The highest rate with unlimited withdrawals is offered by Cynergy Bank, which pays 4.5%. Regular saving accounts pay more than all of these – but there’s a limit to how much money you can save each month.
Principality Building Society allows you to save up to £200 each month at an 8% fixed rate 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.
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