Customers with savings accounts at Chase Bank are set to face a cut in their interest rate. The US-based online-only bank announced a permanent reduction of 0.25 percent in its savings account rates starting from February 19, 2025.
Chase Bank usually sets its savings rates at 1.25% below the Bank of England base rate; however, this gap will increase to 1.5%. This means that from February 2025, customers’ savings interest rates will be further detached from the Bank of England’s base rate.
Chase notified its customers with the following message: “We’re making some changes to our Saver Account Terms and Conditions from 19 February 2025 that you should be aware of.”
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They explained, “The AER of the Chase Saver account is currently 1.25% below the Bank of England base rate. We’re changing this percentage difference from 1.25% to 1.50%. This means if the Bank of England base rate is 4.75%, the AER of our saver will be 3.25%.”
Moreover, they reminded users, “You can find the Bank of England base rate on their website at any time.”
For those with a ‘boosted saver account’, Chase mentioned, “You’ve also got a Chase saver with a boosted rate. This boosted rate offer is subject to any changes to the standard Chase saver variable rate.”
To conclude, the bank stated, “These changes will apply from 19 February 2025. If you’re happy with them, you don’t need to do anything as they’ll happen automatically.”
“You have the right to close your account at any time before this date, free of charge. If we don’t hear anything from you, we’ll assume you’ve consented to these changes.”
The Bank of England opted to maintain interest rates at 4.75% in November, so Chase savers will receive a 3.25% interest rate on their savings. For new customers, Chase does offer an additional 1.5% increase in savings rates, albeit just for the initial six months.
According to new projections from the Monetary Policy Committee (MPC), economic growth is expected to falter in the last quarter of 2024 more than previously anticipated. This comes after fresh official figures released on Wednesday indicated that the Consumer Prices Index (CPI) inflation rate climbed to 2.6% last month—the highest rate since March and marking two consecutive monthly increases.
For savers seeking better returns, considering a switch might be prudent. Currently, Close Brothers is offering savers 4.7% on deposits over £10,000, Leeds Building Society has a rate of 4.4%, Skipton Building Society also provides 4.4%, and Yorkshire Building Society comes in at 4.35%.
Additionally, Santander is providing its current account customers with ‘Santander Edge’, a savings account featuring a 6% rate.