Major bank to make significant change to customer interest rates

Customers at a major bank are set to be hit by significant change next month. Chase confirmed its plans to cut the interest rate on its easy-access Chase Saver account on February 19.

This means savers who keep an account with Chase will see lower returns on their cash. The change will come into affect due to how Chase Saver rates track alongside the Bank of England’s base rate.

This currently stands at 4.75 per cent. Right now, Chase’s interest rate is 1.25 per cent below the base rate, but this is set to drop even further next month.

As a result, savers interest rates will drop from 3.5 per cent 3.25 per cent. However, it’s important to note that the base rate could change before then.

On February 6, the Monetary Policy Committee will convene and determine whether to keep the base rate as it currently is, or to make it go higher or lower, depending on a wide array of economic factors. The Bank of England said that it began raising interest rates in 2021 in a bid to help reduce inflation which it states is working.

It is not yet clear though, whether the Bank is content enough with the current economy to begin cutting rates dramatically. Chase itself has highlighted that other interest rates in its products are not tied to the Bank of England base rate.

It notes: “We keep our interest rates under constant review and can change these for one of the reasons set out in our terms and conditions.” It added: “We’ll let customers know if there are any changes to our rates in the future.”

How to get higher rates with Chase

It’s important to note that not all customers will be hit by potentially lower rates in February. Chase is offering a 1.5 per cent boost for all new customers who sign up to the easy-access Savers account.

However, this is only in effect for six months and if the customer signed up for the saving account within 31 days of opening up an account with the bank. Despite this, it also means that new customers could benefit from an interest rate of around 4.75 per cent by the time changes take effect next month.