It’s the news that Martin Lewis said was bound to come this week and now, sure enough, Chase Bank has issued a message to its customers.
The online bank has emailed customers to notify them that their interest rate is going to be cut in three days’ time.
It means that those who have savings in Chase Bank will earn less interest on their savings than before.
Chase has announced a reduction in its Chase saver rate from 3.75 percent AER to 3.50 percent AER.
The change will take effect from November 14, Chase said.
It comes following the Bank of England’s decision to cut the base rate by 0.25 percentage points from 5 to 4.75.
Chase said in a message to customers seen by the Express: “On 7 November 2024, the Bank of England’s base rate was reduced by 0.25%, meaning the new rate is 4.75%.
“As the chase saver rate is tied to the Bank Of England base rate, we’ll be updating it.
“The standard saver rate will change from 3.75% AER (3.59% gross) variable to 3.50% AER (3.45% gross) variable on 14 November 2024.”
The decision by the BoE led money expert Martin Lewis to warn that savings accounts would start to see their rates fall within the coming days.
He advised people to look at regular savers, such as those from First Direct and Santander which pay up to 7 percent on a fixed amount per month, as well as fixed term savings accounts and ISAs.
Right now, the top paying ISA pays 5.17 percent, from Trading212 and you can deposit up to £20,000 a year into that account without owing any tax on the interest.
The Bank of England has cut interest rates for the second time in four months, after inflation fell back to normal levels earlier this year.
Rates had been at 5 percent after policymakers previously cut them over the summer – on Thursday they came down again.
Hikes in recent years have left mortgage rates much higher than was normal for most of the last decade.
But the latest cut is unlikely to push mortgage rates down immediately because it was “almost fully priced in” by providers, according to Laith Khalaf, an analyst at investment firm AJ Bell.
In fact, the impact of past interest rate hikes is still leading to higher borrowing costs for existing mortgage holders.
