Martin Lewis issues urgent warning to anyone with Chase bank account

Customers of American banking giant Chase, owned by JP Morgan, have been alerted about a significant change. The online bank has rapidly made its mark in the UK, earning the title ‘best current account provider’ and amassing over 1.6 million customers.

One of its major attractions was its popular easy-access savings accounts, which currently track at 1.25% below the Bank of England base rate, now standing at 4.75%. However, from February 19, the Chase Saver will track 1.5% below the BoE’s base rate, reducing your interest rate from 3.5% to 3.25%.

If you opened Chase’s boosted saver before December 9, 2024, your rate will fall from 4.5 per cent to 3.5 per cent today (January 16). But does this mean it’s time to switch banks?

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According to Martin Lewis’ Money Savings Experts, Chase still ranks among the top-paying easy-access accounts, particularly if you require unlimited penalty-free withdrawals.

“As with all variable rate accounts, you should keep an eye on it and diarise to check for alternatives when the rate drops in February,” they advised. “If you have the older boost ending on Thursday 16 January, you may want to consider switching now, as other accounts already offer higher rates – and that gap will increase further once your boost expires.

“Cash ISAs are currently offering the best rates, with Plum leading the pack with an impressive 5.01%. However, there’s a limit of £20,000 that can be deposited into an ISA each tax year, but any interest earned is tax-free, making it an excellent choice for those who have already exceeded their personal allowance. It’s worth noting that this account from Plum allows a maximum of three penalty-free withdrawals per year.

“Chip is currently topping the standard easy-access table with a rate of 4.83%, but there are withdrawal limits that could see your rate cut by 1.1%. Atom Bank also offers a rate of 4.83%, but this drops to 3.25% in any month you make a withdrawal. Regular saving accounts offer higher rates than all of the above, but there are restrictions on how much money you can save each month, with most capping your savings at £200 per month.”

Chase remains the highest-paying cashback debit card, letting you earn up to £15 a month on your everyday spending,” the experts wrote. “It’s also a top pick for use overseas, as it gives near-perfect exchange rates and doesn’t charge any foreign transaction or ATM withdrawal fees. So it’s still worth keeping Chase, even if you move your savings elsewhere.”

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