Chase cuts interest rate on boosted savings account to 4.5% – is it worth it?

Chase Bank has cut the interest rate on its boosted savings account, meaning savers can now only earn up to 4.5% AER.

This rate, which includes a six-month 1.75% AER (fixed) bonus rate, was previously 4.75% (variable).

However, the standard saver rate tracks 1.50% below the Bank of England’s base rate. After the Bank of England lowered the base rate by 25 basis points to 4.25% on 8 May, Chase has now reduced the Saver rate.

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Nevertheless, the Chase Saver with Boosted Rate remains one of the best easy access savings accounts currently on the market.

Customers who want to take advantage of the offer can earn 4.5% for six months before the 1.75% AER boost offer expires – although the underlying rate is variable, so it could change.

Once the bonus period ends, the Chase saver will pay 2.75% AER (variable), correct at the time of writing.

Caitlyn Eastell, spokesperson at Moneyfactscompare.co.uk, said the account “continues to take a highly competitive position in the easy access with bonus market”.

She added: “Savers looking for flexibility with their cash may find this an ideal option. There is no minimum opening amount required, however, there is a £25,000 daily external transfer limit so consumers with larger pots may wish to consider carefully.”

How does the Chase Boosted Saver compare to other accounts?

In terms of interest rates, the Chase account is still one of the best savings accounts on the market right now, but trails behind some other options.

Revolut Ultra’s Instant Access Savings outpaces the interest on the Chase account as it pays 5%, but the offer is only available to Revolut Ultra customers who pay a £55 a month fee.

Chip’s Easy Access Saver pays interest of 4.77%, although this includes a boosted rate of 1.52% for 12 months.

The Chase Saver’s underlying rate is variable, which means it could drop further if the Bank of England cuts the base rate on 19 June when its Monetary Policy Committee (MPC) next meets.

In the unlikely event that the MPC decides to increase interest rates, the Chase rate would increase.

Many economists are forecasting at least one more rate cut before the end of the year, while the IMF has predicted two more reductions.

Chase’s 1.75% bonus rate is fixed for six months. This means even if the standard saver rate changes, savers will earn 1.75% on top of the standard rate.

Who is eligible for the Chase Boosted Saver?

Chase’s Boosted Saver is available only to new Chase customers, and you will have to claim the boosted rate within your first 31 days as a customer with the bank.

That means that if you are an existing customer, you will not be able to claim the deal.

Chase recently launched a separate 1.8% bonus saver rate, which was fixed for six months, available to more than two million customers. At the time, the standard saver rate was 3.00% AER (variable), meaning these savers could earn 4.8% for the bonus period – provided the underlying rate didn’t change.

Chase emailed those eligible about the deal, so customers may want to rummage through their inbox to see if they qualified.