If you opened a Chase savings account in the summer to take advantage of the 1% bonus deal, your temporary boosted rate will come to an end this month. Savers who locked into the deal in June will see their interest rate fall from 4.5% to 3.5% AER on 16 January.
For comparison, the best savings account on the market currently pays 4.85% (excluding a separate 5% Chase deal, which is only available to new customers). With this in mind, would your money be better off elsewhere or should you stick with your Chase saver at the lower rate?
Is Chase’s savings account competitive?
Even without the bonus, the rate on the Chase saver (3.5%) is comfortably higher than the market average of 2.89%. It also offers monthly rather than annual interest payments, a high account limit, and penalty-free withdrawals.
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You need to open a Chase current account to qualify for the saver, but this comes with its own perks. These include 1% cashback for the first 12 months (potentially longer depending on how much you deposit in the account), and no fees when spending abroad.
Rachel Springall, finance expert at Moneyfacts, calls the provider “highly competitive”. But there are some downsides to consider too when weighing up the pros and cons of the savings account.
“It is worth pointing out that the rate outside of the bonus will track at 1.25% below the base rate, so should the Bank of England chop the rate further, savers with this account will see a swift reduction,” Springall adds.
Furthermore, the terms and conditions on the Chase account will change on 19 February, when the rate will drop to 1.5% below the Bank of England base rate. This will come as another blow.
Can I access the 5% deal Chase launched in December?
In December, Chase launched another bonus deal – this time with a 1.5% boost for six months. This deal is available to new customers only. Chase’s December deal takes the overall savings rate to 5%, making it the best easy-access savings account on the market.
If you don’t currently have an account with Chase, this deal is worth a look. If you opened an account in June to take advantage of the previous 1% bonus, though, you are not eligible. As such, now could be a good time to review your savings if you are looking for a better rate on your cash.
Best easy-access savings accounts
The second-best savings rate on the market (after Chase’s temporary 5% boosted rate) is a 4.85% account with Atom Bank. This rate is payable on a wide range of balances, from £1 to £100,000. The account pays a variable rate, which means it could fall at any time.
Like Chase, Atom Bank offers easy-access withdrawals, but savers will earn a lower rate in months where they take money out of the account (3.25%). This is something to bear in mind if you regularly draw on your savings.
Both rates are significantly higher than the market average, which is currently 2.89%. This highlights the benefits of shopping around. The top five rates on the market currently range from 4.75% to 5%.
| Account | Rate (AER) | Notes |
| Chase Saver with Boosted Rate | 5% | Only available to new customers – existing customers whose June deal is maturing cannot take advantage of this offer. Includes a 1.5% bonus for six months. Underlying variable rate is linked to the base rate. |
| Atom Bank Instant Saver Reward | 4.85% | Rate falls to 3.25% in months where savers make a withdrawal. |
| Chip Easy-Access Saver | 4.85% | Includes a 1.03% bonus for 12 months. Underlying variable rate is linked to the base rate. Only three penalty-free withdrawals permitted in a 12-month period. |
| Cahoot Sunny Day Saver | 4.75% | Rate only payable on balances up to £3,000. Term of the account is 12 months, at which point the money will be transferred into a Cahoot savings account. |
| Gatehouse Bank Easy-Access Account | 4.75% (expected profit rate) | This account is operated under Shariah principles. This means interest cannot be earned, but profit is generated instead. The expected profit rate is 4.75% AER. |
Should you fix your savings?
The Bank of England cut interest rates twice last year, and further cuts are expected in 2025 (albeit at a slower pace than previously forecast). With this in mind, it could make sense to open a one or two-year fixed-rate account instead of an easy-access saver.
The top one and two-year accounts currently pay 4.62% and 4.65% respectively. Unlike the rates on a variable account, these are guaranteed for the full period.
Just remember that you won’t be able to access the money in a fixed-rate account until it matures, so it isn’t the right place for your emergency fund.
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