Chase bank has issued an unwelcome warning to customers (Image: Getty)
Chase bank has issued an unwelcome message to customers with savings accounts.
The online only bank has announced it will cut its on savings accounts permanently by 0.25 percent.
The bank’s savings normally track 1.25% below the Bank of England’s base rate. But Chase has announced that it will now track at 1.50% below the Bank of England rate. It means that, whatever the Bank of England’s base rate is, Chase customers will always be further away from that with their savings from February, when the change is made.
Chase issued a message to customers which said: “We’re making some changes to our Saver Account Terms and Conditions from 19 February 2025 that you should be aware of.
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“The AER of the Chase Saver account is currently 1.25% below the Bank of England base rate. We’re changing this percentage difference from 1.25% to 1.50%. This means if the Bank of England base rate is 4.75%, the AER of our saver will be 3.25%.
“You can find the Bank of England base rate on their website at any time.”
To customers who opened a boosted saver account, Chase added: “You’ve also got a Chase saver with a boosted rate. This boosted rate offer is subject to any changes to the standard Chase saver variable rate.
“These changes will apply from 19 February 2025. If you’re happy with them, you don’t need to do anything as they’ll happen automatically.
“You have the right to close your account at any time before this date, free of charge. If we don’t hear anything from you, we’ll assume you’ve consented to these changes.”
The Bank of England chose to hold at 4.75% on Thursday, which means Chase savers will be getting a 3.25% on their savings.
The Bank’s Monetary Policy Committee (MPC) said it was keeping rates unchanged on Thursday after cutting the level in August and again in November.
New projections from the MPC showed that economic growth will be worse over the final three months of 2024 than it had previously predicted.
It followed new official data on Wednesday showing the rate of Consumer Prices Index (CPI) inflation rose to 2.6% last month, its highest level since March and the second monthly increase.
Savers looking for a better deal than Chase could find themselves switching to another provider. Atom Bank currently offers 4.85% on savings, dropping to 3.25% if you withdraw, while Chip offers 4.72% with a maximum of three withdrawals per year.
Chetwood Bank offers 4.71% with no limits on withdrawals and no penalties, while Leeds Building Society also has unlimited withdrawals at 4.4%.