Martin Lewis' MSE issues warning to Chase customers to 'ditch' bank account

Martin Lewis' MSE issues warning to Chase customers to 'ditch' bank account

by · Birmingham Live

Martin Lewis' Money Saving Expert has warned Chase has cut the rates on its linked savings accounts by 0.25 percentage points. As of Thursday 14 November, its easy-access 'boosted saver' now pays 4.5%, while its standard saver pays just 3.5%.

BBC and ITV star Mr Lewis' team at MSE explained: "The changes mean you can earn more on your savings elsewhere – though Chase is still worth keeping for its debit card perks." It said: "But if you didn't manage to grab that before it was pulled in July, and you're on Chase's standard savings rate, you can do a lot better.

It explained: "The current top payer is DF Capital's 90-day notice account at 5.11%. For a shorter notice period, there's Charter Savings Bank's 60-day notice account at 5.06%. These accounts are variable, so the rates can change, but providers must tell you long enough in advance of rate reductions so that you can get the money out before it drops."

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This will bring Chase’s easy-access savings rate to 3.5% AER. It comes after the Bank of England cut the base rate from 5% to 4.75% on 7 November. The Chase account pays a tracker rate, which is currently set at 1.25 percentage points below the base rate.

Commenting on the latest developments in the market, Mark Hicks, head of active savings at Hargreaves Lansdown, says: “Over the next couple of months, we could see a bit more support for both fixed and easy-access savings, as we potentially see inflationary pressures starting to build again.

“We’re not expecting rates to climb significantly though, so if you’re hanging on for a better deal before you fix, it’s time to stop waiting and get moving.

“You can still get strong fixed rates, especially over six months to two years. So if you’re tired of worrying about what drama politics and the bond markets might hold in store, you can fix any savings you won’t need for that period and get on with the rest of your life.”