The Chase Saver account will reduce by 25 basis points next week, following the February base rate cut.
Offering new customers 5% AER (4.89% gross, variable) for six months, the account is currently one of the best savings accounts on the market – but this won’t remain the case for long.
How is the Chase Saver changing?
The standard Chase Saver variable rate will change from 3.5% AER (3.45% gross) to 3.25% AER (3.20% gross) from Thursday 13 February, after the Bank of England cut interest rates yesterday, 6 February.
Try 6 free issues of MoneyWeek today
Get unparalleled financial insight, analysis and expert opinion you can profit from.
Start your trial
Sign up for MoneyWeek’s free twice-daily newsletter.
Join more than 165,000 subscribers and keep yourself informed with latest financial news, insights and expert analysis to help you understand what really matters when it comes to your finances.
Join more than 165,000 subscribers and keep yourself informed with latest financial news, insights and expert analysis to help you understand what really matters when it comes to your finances.
New customers can get an extra 1.5% AER fixed interest for six months if they open a Chase Saver within the first 31 days of joining the bank, meaning they could earn 5% AER for the period.
Latest Videos FromMoneyWeek
After next week’s rate change, this account will pay qualifying savers up to 4.75% AER for six months.
Another interest rate cut lies ahead: Chase announced in December that the AER on the Chase Saver account would change from 1.25% to 1.5% below the Bank of England base rate, effective from Wednesday, 19 February.
With the base rate now 4.5%, it means the standard Chase Saver variable rate is set to fall further to 3% AER. New customers getting the boosted rate would get the extra 1.5% on top of this for their six month period — equating to a 4.5% rate.
Is the Chase Saver still a good option?
Rachel Springall, finance expert at Moneyfactscompare.co.uk, said savers who were “enchanted” by Chase’s guaranteed bonus of 1.5% AER for new customers should make a note to review the account around its expiry date.
“Any existing customers about to see their bonus expire must make efforts to shop around for a new deal if they want to maximise the interest on their savings,” she told MoneyWeek.
“Despite the upcoming changes, Chase may still be a worthwhile choice for savers who are fed up with the rates and service of a more familiar high street bank. The current account also has its own perks of merit, such as 1% cashback and is free to use abroad.”
Springall highlighted Coventry Building Society recently launched its “4 Access Saver” which pays 4.85% AER/Gross p.a. (variable), although charge-free withdrawals are limited to four times per year.
We list the top-paying interest rates for instant access savings available right now in our "best easy access accounts" guide.
