Popular bank with 2million customers to make big change to accounts TOMORROW
A POPULAR bank with two million customers is making a big change to accounts tomorrow.
Chase is once again set to drop rates on one of its savings accounts, marking the second cut in just one week by the firm.
Customers are currently getting 3.25% interest on their standard Saver account.
The interest was previously set at 3.5%, but it was cut by the bank last Thursday, February 13.
And now from tomorrow, the rate will once again drop to 3%.
It comes after the Monetary Policy Committee (MPC), the BoE’s rate-setters reduced the base rate from 4.75% to 4.5% earlier this month.
The base rate is used by lenders to determine the interest rates offered to customers on savings and borrowing costs.
A base rate cut can mean that mortgage rates are lowered, which is good news for homeowners.
But savers can be left with the short end of the stick as the interest rate they earn on their savings can also drop.
Markets are expecting the base rate to drop as low as 4% by the end of the year, which would see the interest rate on the Saver account reduce even further.
Of course, if the base rate increases again then the account will mirror this.
It’s not all doom and gloom though because the account is still a pretty good option for savers.
At 3% the Chase Saver standard rate is above market average for easy access accounts and it also doesn’t have restrictions, fees, charges, or penalties.
Anyone who signs up as a new customer can get an extra 1.5% AER (annual equivalent rate) fixed interest for the first six months (which won’t change with the base rate) on top of the basic underlying rate.
This is if they open a Chase Saver account within the first 31 days of joining the bank
You can sign up for one of the accounts via the Chase app which is downloadable in the Apple App Store or via Google Play.
ALL CHANGE FOR BANK RATES
Numerous banks have been cutting their savings rates following the Bank of England’s decision.
Barclays slashed the rates on its Everyday Saver and Rainy Day saver accounts.
For the Everyday Saver, the interest rate has been lowered from 1.51% to 1.26% on balances up to £10,000.
The Rainy Day Saver, which is for Barclays Blue Rewards members and Premier Banking customers, is reducing its rate from 5.12% to 4.87%.
Where to find the best savings rates
Many savings accounts offer miserly rates meaning that money is generating little or no return.
However, there are ways to get your cash working hard. Sun Savers Editor Lana Clements explains how to make sure you money is getting the best interest rate.
Easy access savings accounts offer flexibility for customers, meaning they can dip in and out of cash when needed. However, the caveat is that rates can change at any time.
If you’re keeping your money in an easy access account, you’ll need to keep checking whether it’s the best paying account for your circumstances and move if not.
Check in at least once a month to see what is happening in the market.
Check what is offered by your bank – sometimes the best rates are for customers only.
But do search the wider market as often top savings accounts are offered by lesser known providers.
Comparison sites are a good place to check for the top rates. Try Moneyfactscompare.co.uk or Moneysupermarket.
You can search by different account type. You’ll usually get a better interest rate if you can lock your money away for a fixed amount of time, but it’s always a good idea to keep some money in an easy access account in case of emergencies.
Don’t overlook regular savings accounts often pay some of the best rates, but you’ll need to commit to monthly payments. This can be a great way to get into a savings habit while earning top rates at the same time.