Martin Lewis’ MSE has issued a warning over a major bank with TWO MILLION customers. Martin’s site Money Saving Expert, which the BBC and ITV star founded, says Chase Bank is making an unwelcome change in February 2025.
The interest rate on its Chase Saver account currently tracks at 1.25% below the Bank of England base rate, which is now 4.75%. But from February 19, the Chase Saver will start to track 1.5% below the Bank of England base rate. It means savers will see their interest rate go down from 3.5% to 3.25%.
MSE advised: “Many Chase customers will have taken this out in June last year – if you were one of them, you’ll revert to the standard rate (currently 3.5%). If you joined Chase as a newbie on or after 9 December 2024, you’ll have got access to a boosted saver offering a 1.5% AER bonus. This newer boost doesn’t have a fixed expiry date. Instead, it lasts for six months from the date you open it – so it won’t be ending yet.”
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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.”