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Martin Lewis’ MSE issues ‘last chance’ warning as 5.1% saving rate to be axed in days
Plus watch our video on how to nab bank freebies worth £1,000's
MARTIN Lewis' MoneySavingExpert has issued a final warning to savers as one of the top paying savings rates is set to be axed in days.
Chase Bank plans to scrap its 5.1% interest rate on easy access savers accounts.
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The online-only bank will stop offering this rate from 11.59pm on Wednesday, July 17, the MoneySaving Expert team said.
The offer is also not exclusively for new customers, current users who have less than £50,000 across all of their Chase accounts and those who joined after May 3 can also apply.
Chase's deal offers a 1% bonus on top of its usual saving rate of 4.1%.
Those who sign up now will have the bonus in place until January 16 2025.
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A previous version of this deal is set to end in November 2024, but you do have the option to move across to the newer version with the later end date.
New and existing Chase customers who don't take advantage of the deal, will only be able to get its standard rate, which currently pays 4.1% interest in comparison.
An easy-access account is one of the most common types of bank accounts and allows customers quick access to their money.
However, experts at the money saving blog explained that because Chase's standard rate is variable, the overall rate you get on your account could still go up or down before the 1% bonus is due to end.
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Since May, Chase's standard rate has been set at 1.15% points below the Bank of England base rate.
But if the central Bank cut the base rate from its current 5.25% to 5%, Chase's standard rate would fall from 4.1% to 3.85% – and your boosted saver would then pay 4.85%.
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Chase's boosted 5.1% rate is among the best saving rates currently on offer.
Ulster Bank is currently offering a 5.2% rate with its linked saver, but the bank will carry out an extensive credit check.
This is unlike Chase which just asks for ID check on application.
Many challenger banks and building societies are working hard to entice savers.
For example, Principality Building Society has a triple access savings account - which lets you take out money up to three times a year without having to pay any charges -with a bonus rate paying 5% interest.
Meanwhile, Paragon Bank has a double access savings account - lets you take out money twice a year without charges - account paying 4.91%.
It is important to remember deals are subject to terms and conditions.
How you can get the Chase bonus rate
To access the 5.1% rate you will first need to open a current account with Chase.
To do this you will need to download the bank's app to your smartphone or tablet.
When you download the app you will need to upload some proof of ID, such as your passport.
The requirements for opening bank with Chase are as follows:
- Be 18+
- Be a resident of the UK only
- Have a smartphone and a UK mobile number
- Be a tax resident of the UK
Once you have set up a current account, you can then go on the Chase app go to the 'save and invest' section click 'add +' and choose 'saver account with a boosted rate' .
What is going with savings rates?
Savers typically get better deals if they keep an eye on what competitors are offering and consider switching their accounts.
The Sun reported yesterday that customers with their money in old accounts could risk getting a much lower return than those who switch to new products.
The analysis by Moneyfactscompare.co.uk showed the average rate of a closed easy access account is just 2.82% this July.
But if customers moved their money to their money to a similar account with a new provider they could see that rate rise to 3.13%.
It comes amid a challenging time for savers as they try to manage their money amid a period of economic uncertainty.
Markets expect the Bank of England to cut its base rate in August this year after policymakers kept it at 5.25% in June.
This is important for banking customers because high-street banks and lenders use the BoE base rate to set their own interest rates on mortgages, loans and savings accounts.
High street banks have used the BoE's decision to hold rates to their advantage.
Instead of fighting to offer the best deal, banks are more likely to maintain rates at their current levels - and in some isolated cases make small cuts.
What saving accounts is best for your money?
It can be an overwhelming experience trying to figure out what the best saving account is for your money.
Doing some research on websites such as MoneyFacts and price comparison sites including Compare the Market and Go Compare will quickly show you what's out there.
These websites let you tailor your searches to find an account which works for you.
There are three types of saving accounts on the market, fixed, easy access and regular access.
A fixed-rate savings account offers some of the highest interest rates but comes at the cost of being unable to withdraw your cash within the agreed term.
This means that your money is locked in, so even if interest rates increase you are unable to move your money and switch to a better account.
Some providers give the option to withdraw but it comes with a hefty fee.
Easy access accounts do what they say on the tin and give customers quick access to their money.
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These accounts do tend to come with lower returns but are a good option if you want the freedom to move your money without being charged a penalty fee.
Lastly is a regular saver account, these accounts generate decent returns but only on the basis that you pay a set amount in each month.
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.
Do you have a money problem that needs sorting? Get in touch by emailing [email protected].
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