Interest rates on Chase’s popular easy access saver have been cut by 1.8% percentage points after the bank axed its boosted rate on 10 July in a blow to consumers.
Since the end of April, Chase offered a 1.8% boost to their easy access savings account on top of the underlying variable rate, but this has now been scrapped after a period of “significant demand”.
Existing Chase customers signing up for the easy-access savings account will now only receive an interest rate of 2.75%, well below rates offered by the best savings accounts on the market.
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Currently, the consensus among analysts is that the Bank of England will lower the base rate later this year, meaning that rates on Chase’s east access are also likely to fall as it has a variable interest rate.
Though the 1.8% boost has been removed from the account, all other aspects remain the same. Money held in it can still be freely accessed, deposited, or withdrawn with no fees, charges, or penalties imposed by Chase.
Rachel Springall, finance expert at Moneyfactscompare.co.uk, said that though customers who missed out on the offer may be disappointed, “there are lots of other easy access accounts paying a competitive return in the top rate tables.”
She says that many challenger banks and building societies are currently paying over 4% interest on their accounts, but advises customers to review their savings rates and switch when appropriate to ensure their money is working hard.
Chase notes that while it has withdrawn the boost from this savings account, this will not affect a separate market-leading 5% boosted rate it provides for new customers.
What are the alternatives to Chase’s easy access saver?
With the boosted rate coming to an end for Chase’s easy access savings account, the offer is no longer one of the best on the market.
Springall warns that while bonuses on savings accounts are “great as a boost, they will expire in time, usually leading to a substantial drop in any interest rate earned.”
To avoid this, she advises consumers to keep a note of when the deal is set to end and switch to a better deal once it expires.
As previously mentioned, Chase has a separate offer for an account with a 5% interest rate (inclusive of a 2.17% boost for 12 months), though this is only available to new customers.
If you have not been a Chase customer before, opening this account could be a good move as, according to MoneyFacts, it is the best easy access savings account on the market at the moment.
Otherwise, consumers could also opt for Atom Bank’s Instant Saver Reward account which offers 4.75% interest on a maximum investment of £100,000, though a lower rate is paid if a withdrawal is made.
Snoop also offers a leading east access savings account that pays 4.6% interest on balances between £1 and £85,000 with no penalties for withdrawing any money in the account.
MoneyWeek regularly updates lists of the best easy access savings accounts, the best fixed-term savings accounts, and the best cash ISAs.
While Chase’s saver without the boosted rate is not among the best offers on the market, it is still slightly better than average, according to MoneyFacts.
The average savings rate for an easy access savings account is just 2.67%, while Chase’s saver without a boost is 2.75%, but consumers who want to get the most from their savings should look into alternatives.
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