Chase has confirmed two major changes to its account, one of which comes into effect this week. Martin Lewis’ MSE explains what this means for your money.
Brits saving with American banking giant Chase have been warned over a major shakeup. Owned by JP Morgan, the online bank has quickly established itself in the UK, being branded the ‘best current account provider’ and attracting more than 1.6 million customers.
One of the bank’s biggest selling points was its popular easy-access savings accounts, that currently tracks at 1.25% below the Bank of England base rate, which is now 4.75%. However, starting on February 19, the Chase Saver will track 1.5% below the BoE’s base rate, meaning your interest rate will be cut from 3.5% to 3.25%.
If you took out Chase’s boosted saver before December 9, 2024, your rate will drop from 4.5 per cent to 3.5 per cent today (January 16). However, does this mean you’ll be better off banking elsewhere?
Martin Lewis’ Money Savings Experts state that Chase is still among the top-paying easy-access accounts, especially if you need unlimited penalty-free withdrawals. “As with all variable rate accounts, you should keep an eye on it and diarise to check for alternatives when the rate drops in February,” they wrote. “If you have the older boost ending on Thursday 16 January, you may want to ditch and switch now, as other accounts already pay more – and that gap will widen further once your boost expires.
Cash ISAs currently pay the best rates, with Plum offering an impressive 5.01%. You can only deposit £20,000 each tax year into an ISA but any interest you make is tax-free, which makes it a great option for anyone whose already exceeded their personal allowance. However, it’s important to know that this account from Plum comes with a maximum of three penalty-free withdrawals a year.
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Chip currently tops the standard easy-access table with a rate of 4.83%, but again there are limits to withdrawals that could see your rate slash by 1.1%. Atom Bank offers 4.83% too, but this also drops to 3.25% in each month you make a withdrawal. Regular saving accounts pay more than all of the above – but you’re limited to how much money you can save each month, with most maxing your savings at £200 per month.
“Chase remains the highest-paying cashback debit card, letting you earn up to £15 a month on your everyday spending,” the experts wrote. “It’s also a top pick for use overseas, as it gives near-perfect exchange rates and doesn’t charge any foreign transaction or ATM withdrawal fees. So it’s still worth keeping Chase, even if you move your savings elsewhere.”
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